Last revised (Transmittal 14-020) October 19, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview

Appx. 1B: Solicitation Provisions and Contract Clauses

Note: For a cross-linked matrix of the solicitation provisions and clauses in this appendix, see: 

Guide, Vol. 14, Appx. 1C (Matrix of Solicitation Provisions and Clauses (Including Key)).

Provisions and Clauses (B and Chapter 1)

Provisions and Clauses (Chapter 2)

Provisions and Clauses (Chapter 3)

Provisions and Clauses (Chapter 4)

Provisions and Clauses (Chapter 5)

Provisions and Clauses (Chapter 6)

Provisions and Clauses (Chapter 7)

Provisions and Clauses (B and Chapter 1)

B.1.1 Definitions

Provision

A term or condition used only in solicitations and applying only before 

award, e.g., provisions which provide information about how offers will be 

evaluated. These are generally incorporated at the end of solicitation 

documents in order to easily omit them from the award document.

Clause

A term or condition used in solicitations and contracts and applying both 

before and after award.

B.1.2 Applicability

This Appendix sets forth standard provisions and clauses to be included in solicitations 

and contracts for products and services. Applicable provisions and clauses must be 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

included in the prescribed Uniform Contract Format (UCF) section when issuing a 

solicitation or contract which is required to follow the UCF. See: Appx. 1A (Uniform 

Contract Format) and Appx. 1C (Matrix of Solicitation Provisions and Clauses (Including 

Key)). When UCF does not apply, such as in small purchase procedures, incorporate 

appropriate clauses and provisions in the following order:

• clauses followed by provisions

• clauses/provisions incorporated by reference followed by those required to be 

incorporated in full text (see: Appx. 1C (Matrix of Solicitation Provisions and 

Clauses (Including Key))

• by clause/provision number

B.1.3 Numbering of Provisions and Clauses

Provisions and clauses are numbered with the chapter or appendix prescribing their use 

in Volume 14 of the Guide. For instance, Clause 1-1 is in Chapter 1, Provision 2-1 is in 

Chapter 2, and Provision B-1 is prescribed in this Appendix 1B.

Beneath each clause or provision title are instructions on where in this volume of the 

Guide the prescription for the usage of that clause or provision is located.

Appx. 1C (Matrix of Solicitation Provisions and Clauses) is a quick reference document 

to help COs find clauses, provisions, and their prescription(s). It also provides guidance 

as to:

• the required UCF section for each clause/provision, when UCF is applicable;

• whether specific clauses or provisions may be incorporated by reference or 

must be incorporated in full text; and

• whether the clause or provision is always required (R) for a specific type of 

procurement or only required when certain conditions apply (A).

B.2.1 Solicitation Provisions and Contract Clauses Prescribed in Appendix 

1B.

(a) Provision B-1, Solicitation Provisions Incorporated by Reference is included in all 

solicitations.

(b) Clause B-5, Clauses Incorporated by Reference is included in all solicitations and 

contracts.

(c) Clause B-20, Computer Generated Forms is included in all solicitations and 

contracts that require the contractor to submit data on standard or optional forms.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

Provision B-1, Solicitation Provisions Incorporated by Reference

Include the following provision as prescribed in Appx. 1B, § B.2.1(a) (Solicitation 

Provisions and Contract Clauses Prescribed in Appendix 1B).

Solicitation Provisions Incorporated by Reference (SEP 2010)

This solicitation incorporates one or more solicitation provisions by 

reference, with the same force and effect as if they were given in full text. 

Upon request, the contracting officer will make their full text available. The 

offeror is cautioned that the listed provisions may include blocks that must 

be completed by the offeror and submitted with its quotation or offer. In 

lieu of submitting the full text of those provisions, the offeror may identify 

the provision by paragraph identifier and provide the appropriate 

information with its quotation or offer. Also, the full text of a solicitation 

provision may be accessed electronically at this address:

http://www.uscourts.gov/procurement.aspx.

(end)

Clause B-5, Clauses Incorporated by Reference

Include the following clause as prescribed in Appx. 1B, § B.2.1(b) (Solicitation 

Provisions and Contract Clauses Prescribed in Appendix 1B).

Clauses Incorporated by Reference (SEP 2010)

This contract incorporates one or more clauses by reference, with the 

same force and effect as if they were given in full text. Upon request, the 

contracting officer will make their full text available. Also, the full text of a 

clause may be accessed electronically at this address:

http://www.uscourts.gov/procurement.aspx.

(end)

Provision B-10, RESERVED

Clause B-15, RESERVED

Clause B-20, Computer Generated Forms

Include the following clause as prescribed in Appx. 1B, § B.2.1(c) (Solicitation 

Provisions and Contract Clauses Prescribed in Appendix 1B).

Computer Generated Forms (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(a) Any data required to be submitted on a Standard or Optional form may be 

submitted on a computer-generated version of the form, provided there is no 

change to the name, content, or sequence of the data elements on the form, and 

provided the form carries the Standard or Optional form number and edition date.

(b) Unless prohibited by the contracting officer, any data required to be submitted on 

a judiciary unique form may be submitted on a computer-generated version of 

the form provided there is no change to the name, content, or sequence of the 

data elements on the form and provided the form carries the judiciary form 

number and edition date.

(c) If the contractor submits a computer-generated version of a form that is different 

than the required form, then the rights and obligations of the parties will be 

determined based on the content of the required form.

(end)

Clause 1-1, Employment by the Government

Include the following clause as prescribed in § 150.30.40 (Clauses).

Employment by the Government (JAN 2003)

(a) The contractor covenants that throughout the term of this contract no contractor 

employee who performs services under this contract will be an officer or 

employee of the government of the United States.

(b) If the contractor be an individual, the contractor covenants that throughout the 

term of this contract the individual will not be or become an officer or employee of 

the government of the United States. If during the term of contract the contractor 

intends to become an officer or employee of the government, the contractor shall 

advise the contracting officer in writing of such intentions so appropriate 

measures may be taken.

(c) If the contractor be other than an individual, the contractor covenants that 

throughout the term of this contract no partner, principal, officer, stockholder, or 

other person having a financial interest in the contractor or the ability to control 

the contractor, directly or indirectly, will be or become an officer or employee of 

the government of the United States. The status of a stockholder as an officer or 

employee of the government of the United States will not constitute a violation of 

this subsection if the stock of the contractor is traded publicly over the counter or 

on a regional or national stock exchange.

(d) For purposes of subsection (c), a business or partnership interest or stock owned 

by a spouse, child, or parent of an officer or employee of the government of the 

United States shall be deemed to be owned by such officer or employee.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(e) The violation of any subsection of this section will constitute a material breach for 

which the judiciary may seek any and all remedies under the contract, including 

termination.

(end)

Clause 1-5, Conflict of Interest

Include the following clause as prescribed in § 150.30.40 (Clauses) and § 520.75(a) 

(Provisions and Clauses).

Conflict of Interest (AUG 2004)

(a) The contractor specifically agrees that there is no conflict of interest arising from 

the services to be provided under this agreement. The contractor further agrees 

that no employee, principal, or affiliate is in any such conflict.

(b) Work under this contract may create a future conflict of interest that could prohibit 

the contractor from competing for, or being awarded, future judiciary contracts. 

The following examples illustrate situations in which questions concerning 

potential conflicts of interest may arise:

(1) Unequal Access to Information

Access to internal judiciary business information as part of the 

performance of a contract that could provide the contractor a competitive 

advantage in a later competition for another judiciary contract. Such an 

advantage could easily be perceived as unfair by a competing vendor who 

is not given similar access to the relevant information.

(2) Competitive Advantage

The contractor, under a prior or existing contract, participates in defining 

or preparing the requirements or documents that are involved in a 

subsequent procurement where the contractor may be a competitor. This 

includes, but is not limited to, defining the requirements, preparing an 

alternatives analysis, drafting the statement of work or specifications, or 

developing the evaluation criteria.

(3) Impaired Objectivity

The contractor is required to assess or evaluate products or services 

produced or performed by the contractor or one of its business divisions, 

subsidiaries, or affiliates, or any entity with which it has a significant 

financial relationship. The contractor’s ability to render impartial advice 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

could be undermined by the contractor’s financial or other business 

relationship with the entity being evaluated.

The contractor agrees to immediately notify the contracting officer, in writing, if an actual 

or potential conflict of interest arises, including any of the above and if a non-judiciary 

client requests or receives any professional advice, representation, or assistance 

regarding the judiciary.

The judiciary reserves the right to preclude a contractor from participating in a 

procurement, refuse to permit the contractor to undertake any conflicting agreements 

with non-judiciary clients, or terminate this contract without cost to the judiciary in the 

event the contracting officer determines a conflict of interest exists and cannot be 

avoided or mitigated.

(end)

Clause 1-10, Gratuities or Gifts

Include the following clause as prescribed in § 150.50.50 (Clause).

Gratuities or Gifts (JAN 2010)

(a) The right of the contractor to proceed may be terminated by written notice if, after 

notice and hearing, the Procurement Executive or designee determines — at a 

level above the contracting officer — 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 judiciary; 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 this contract is terminated under paragraph (a) of this clause, the judiciary is 

entitled to pursue the same remedies as in a breach of contract.

(d) The rights and remedies of the judiciary provided in this clause shall not be 

exclusive and are in addition to any other rights and remedies provided by law or 

under this contract.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Clause 1-15, Disclosure of Contractor Information to the Public

Include the following clause as prescribed in § 170.70 (Clause).

Disclosure of Contractor Information to the Public (AUG 2004)

(a) The judiciary reserves the right to disclose information provided by the 

contractor, in response to a request by a member of the general public. Upon 

receipt of a written request, the judiciary will disclose information which would 

constitute public records in an agency covered by the Freedom of Information 

Act. In the event the requested information consists of or includes commercial or 

financial information, including unit prices, the contractor shall be notified of the 

request and provided with an opportunity to comment.

(b) The contractor will thereafter be notified as to whether the information requested 

will be released. The contractor understands and agrees that unit and/or 

aggregate prices contained in the contract may be subject to disclosure without 

consent.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 2)

Provision 2-1, Request for Information or Solicitation for Planning 

Purposes

Include the following provision as prescribed in § 210.60.40 (Solicitation Provision).

Request for Information or Solicitation for Planning Purposes (JAN 

2003)

The judiciary does not intend to award a contract on the basis of this 

solicitation or to otherwise pay for the information solicited.

(1) Although "offer" and "offeror" are used in this Request for Information, 

your response will be treated as information only. It will not be used as an 

offer.

(2) This solicitation is issued for the purpose of: [state purpose]

(end)

Clause 2-5A, Inspection of Products

Include the following clause as prescribed in § 220.10.70(a) (Clauses).

Inspection of Products (APR 2013)

(a) The contractor shall use and maintain a written inspection or quality control 

system acceptable to the judiciary for the products under this contract. The 

contractor shall tender to the judiciary for acceptance only products which have 

been inspected in accordance with the acceptable 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 judiciary during contract performance and for at least 

three years after acceptance. The judiciary has the right to evaluate the 

acceptability and effectiveness of the contractor's inspection system before 

award and during contract performance. This evaluation may be used to 

determine the extent of judiciary inspection and testing, but this does not waive 

its right to inspect and test all items. The right of review, whether exercised or 

not, does not relieve the contractor of the obligations under the contract.

(b) The judiciary has the right to inspect and test all products provided under this 

contract, to the extent practicable, at all times and places, including the period of 

manufacture, and in any event before acceptance. The judiciary will perform 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

inspections and tests in a manner that will not unduly delay the work. The 

judiciary assumes no contractual obligation to perform any inspection and test for 

the benefit of the contractor unless specifically set forth elsewhere in this 

contract.

(c) If requested by the judiciary, the contractor shall provide all reasonable facilities 

and assistance to the judiciary inspectors. If the judiciary performs inspections or 

tests on the premises of the contractor or a subcontractor, the contractor shall 

furnish, and shall require subcontractors to furnish, at no increase in contract 

price, all reasonable facilities and assistance for the safe and convenient 

performance of these duties. Except as otherwise provided in the contract, the 

judiciary shall bear the expense of judiciary inspections or tests made at other 

than the contractor’s or subcontractor’s premises; provided, that in case of 

rejection, the judiciary shall not be liable for any reduction in the value of 

inspection or test samples.

(d) The judiciary may require the contractor to correct or replace any products that 

fail to comply with the requirements of this contract. Products are nonconforming 

when they are defective in material or workmanship or are otherwise not in 

conformity with contract requirements. The judiciary may reject nonconforming 

supplies with or without disposition instructions. Upon determining that the 

products are nonconforming, the judiciary may, at its discretion:

(1) require replacement or correction of the defective products;

(2) acquire replacement products from another source, and charge the 

contractor for any costs incurred by the judiciary; or

(3) accept the nonconforming products at a reduced price.

(e) The contractor shall 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. Corrected or 

replaced products may not be tendered again unless the former tender and the 

requirement for correction or replacement are disclosed.

(f) If the contractor fails to proceed with reasonable promptness to remove, replace 

or correct rejected products, the judiciary may:

(1) by contract, or otherwise, remove, replace, or correct the products and 

charge the cost to the contractor; or

(2) terminate this contract for default.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

(g) If the contractor does not correct or replace the products within the contract 

delivery schedule, the contracting officer may require an equitable price reduction 

as consideration for late delivery.

(h) Acceptance shall be conclusive, except for latent defects, fraud, gross mistakes 

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

(i) The contracting officer may require a price reduction for consideration for any 

judiciary costs incurred for:

(1) the total time, including round-trip travel time, lost by judiciary 

representatives when the contractor is not ready for inspection at the time 

inspection and testing is requested by the judiciary; and

(2) the total time, including round-trip travel time, required by judiciary 

representatives for reinspection and retesting necessitated by rejection.

(end)

Clause 2-5B, Inspection of Services

Include the following clause as prescribed in § 220.10.70(b) (Clauses).

Inspection of Services (APR 2013)

(a) The contractor shall provide and maintain an inspection system acceptable to the 

judiciary covering the performance of services under this contract. Complete 

records of all inspection work performed by the contractor shall be maintained 

and made available to the judiciary during contract performance and for at least 

three years after acceptance.

(b) The judiciary has the right to inspect and test all services provided under this 

contract, to the extent practicable, at all times and places during the term of the 

contract. The judiciary will perform inspections and tests in a manner that will not 

unduly delay the work.

(c) If the judiciary performs inspections or tests on the premises of the contractor or 

a subcontractor, the contractor shall furnish, and shall require subcontractors to 

furnish, at no increase in contract price, all reasonable facilities and assistance 

for the safe and convenient performance of these duties.

(d) If any of the services do not conform with contract requirements, the judiciary 

may require the contractor to perform the services again in conformity with 

contract requirements, at no increase in contract amount. When the services 

cannot be corrected by re-performance, the judiciary may:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(1) require the contractor to take necessary action to ensure that future 

performance conforms to contract requirements; and

(2) reduce the contract price to reflect the reduced value of the services 

performed.

(e) If the contractor fails to promptly perform the services again or to take the 

necessary action to ensure future performance in conformity with contract 

requirements, the judiciary may:

(1) by contract or otherwise, obtain performance of the services and charge to 

the contractor any cost incurred by the judiciary that is directly related to 

the performance of such service; or

(2) terminate the contract for default.

(end)

Clause 2-10, Responsibility for Products

Include the following clause as prescribed is § 220.10.70(c) (Clauses).

Responsibility for Products (JAN 2010)

(a) Title to products furnished under this contract shall pass to the judiciary upon 

formal acceptance, regardless of when or where the judiciary takes physical 

possession, unless the contract specifically provides for earlier passage of title.

(b) Unless the contract specifically provides otherwise, risk of loss of or damage to 

products shall remain with the contractor until, and shall pass to the judiciary 

upon:

(1) delivery of the products to a carrier, if transportation is F.o.b. origin; or

(2) acceptance by the judiciary or delivery of the products to the judiciary at 

the destination specified in the contract whichever is later, if transportation 

is f.o.b. destination.

(c) Paragraph (b) of this clause shall not apply to products that so fail to conform to 

contract requirements as to give a right of rejection. The risk of loss of or 

damage to such non-conforming products remains with the contractor until cure 

or acceptance. After cure or acceptance, paragraph (b) of this clause shall 

apply.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(d) Under paragraph (b) of this clause, the contractor shall not be liable for loss of or 

damage to products caused by the negligence of officers, agents, or employees 

of the judiciary acting within the scope of their employment.

(end)

Provision 2-15, Warranty Information

Include the following provision as prescribed in § 220.20.40(a) (Clauses and 

Provisions).

Warranty Information (JAN 2003)

Offerors are encouraged to submit information on any standard 

commercial warranties provided for offered products. The judiciary will 

consider these warranties in determining the most advantageous offer, to 

the extent provided in the evaluation factors.

(end)

Clause 2-20A, Incorporation of Warranty

Include the following clause as prescribed in § 220.20.40(b) (Clauses and Provisions).

Incorporation of Warranty (JAN 2003)

Notwithstanding the contractor's standard commercial warranty, if offered 

and accepted by the judiciary, any dispute thereunder will be resolved 

under the Disputes clause of this contract, notwithstanding any disputes 

procedure that may be specified in the warranty.

(end)

Clause 2-20B, Contractor Warranty (Products)

Include this clause as prescribed in § 220.20.40(c) (Clauses and Provisions).

Contractor Warranty (Products) (JAN 2010)

(a) The contractor warrants that all products furnished under this contract, including 

packaging and markings, will be free from defects in material or workmanship 

and will conform with the specifications and all other requirements of this 

contract.

(b) The contracting officer will give written notice to the contractor of any breach of 

warranty and either:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(1) require the prompt correction or replacement of any defective or 

nonconforming products; or

(2) retain them, reducing the contract price by an amount equitable under the 

circumstances.

(c) When return for correction or replacement is required, the contractor is 

responsible for all costs of transportation and for risk of loss in transit. If the 

contractor fails or refuses to correct or replace the defective or nonconforming 

products, the contracting officer may correct or replace them with similar 

products and charge the contractor for any cost to the judiciary. In addition, the 

contracting officer may dispose of the nonconforming products, with 

reimbursement from the contractor or from the proceeds for excess costs. Any 

products corrected or furnished in replacement are subject to this clause.

(d) The rights and remedies of the judiciary provided in this clause are in addition to, 

and do not limit, any rights afforded to the judiciary by any other clause of the 

contract.

(end)

Clause 2-20C, Warranty of Services

Include the following clause as prescribed in § 220.20.40(d) (Clauses and Provisions).

Warranty of Services (JAN 2003)

(a) Definition. "Acceptance," as used in this clause, means the act of an authorized 

representative of the judiciary by which the judiciary assumes for itself, or as an 

agent of another, approves specific services, as partial or complete performance 

of the contract.

(b) Notwithstanding inspection and acceptance by the judiciary or any provision 

concerning the conclusiveness thereof, the contractor warrants that all services 

performed under this contract will, at the time of acceptance, be free from defects 

in workmanship and conform to the requirements of this contract. The contracting 

officer will give written notice of any defect or nonconformance to the contractor 

[contracting officer will insert the specific period of time in which notice will be 

given to the contractor; e.g., "within 30 days from the date of acceptance by the 

judiciary"; within 1000 hours of use by the judiciary;" or other specified event 

whose occurrence will terminate the period of notice, or combination of any 

applicable events or period of time]. This notice will state either

(1) that the contractor shall correct or re-perform any defective or 

nonconforming services; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

(2) that the judiciary does not require correction or re-performance.

(c) If the contractor is required to correct or re-perform, it shall be at no cost to the 

judiciary, and any services corrected or re-performed by the contractor shall be 

subject to this clause to the same extent as work initially performed. If the 

contractor fails or refuses to correct or re-perform, the contracting officer may, by 

contract or otherwise, correct or replace with similar services and charge to the 

contractor the cost occasioned to the judiciary thereby, or make an equitable 

adjustment in the contract price.

(d) If the judiciary does not require correction or re-performance, the contracting 

officer will make an equitable adjustment in the contract price.

(end)

Clause 2-25A, Delivery Terms and Contractor's Responsibilities

Include the following clause as prescribed in § 220.25.70(a) (Product-Related Delivery 

Clauses and Provisions).

Delivery Terms and Contractor's Responsibilities (JAN 2003)

(a) The judiciary reserves the right to specify the mode of transportation and routing 

to be employed.

(b) Destination: If the contract specifies "F.o.b. destination," the following apply:

(1) “F.o.b. destination" means delivery to a destination specified in the 

purchase document by the consignor or seller (unless the contract 

provides otherwise). This includes within the doors of the specified 

building, including delivery to specific rooms within the building when 

specified. The cost of shipping and risk of loss are borne by the seller or 

consignor. Title to the products passes to the judiciary when deliverables 

arrive at the contract's stated destination.

(2) The contractor shall:

(i) pack and mark shipments to comply with contract specifications or, 

in their absence, prepare shipments in accordance with carrier 

requirements;

(ii) prepare and distribute commercial bills of lading;

(iii) deliver the shipment in good order and condition to the point of 

delivery specified in the contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

(iv) be responsible for loss or damage occurring before receipt at the 

specified point of delivery;

(v) furnish a delivery schedule and designate the mode of delivery;

(vi) pay and bear all delivery costs to the specified point of delivery.

(c) Origin: If the contract specifies "F.o.b. origin," the following apply:

(1) "F.o.b. origin" means delivery, free of expense to the judiciary to the 

carrier or shipment facility as follows:

(i) delivery on board the indicated type of conveyance of the carrier (or 

of the judiciary, if specified), to the specified point from which the 

shipment will be made and from which line haul transportation 

service (as distinguished from switching, local drayage, or other 

terminal service) begins;

(ii) to a U.S. Postal Service facility; or

(iii) delivered by the contractor, to any judiciary designated point 

located within the same commercial zone (as prescribed by the 

Interstate Commerce Commission) as the F.o.b. point named in the 

contract.

(2) The contractor shall:

(i) pack and mark shipments to comply with contract specifications or, 

in their absence, prepare the shipment in accordance with carrier 

requirements and good commercial practices and secure the lowest 

applicable transportation charge.

(ii) order specified carrier equipment when requested by the judiciary

or else order appropriate carrier equipment not in excess of 

capacity to accommodate the shipment.

(iii) deliver the shipment in good order and condition to the carrier, 

when loaded by the contractor, load, stow, trim, block, and/or brace 

shipments as required by the carrier's rules and regulations.

(iv) be responsible for loss or damage occurring before delivery to the 

carrier; and for loss or damage due to improper packing/marking 

and, when loaded by the contractor, from improper loading, 

stowing, trimming, blocking, and/or bracing of the shipment;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

(v) prepare a commercial bill of lading or other transportation receipt, 

to show:

(A) a description of the shipment in terms of the governing 

freight classification or tariff (or government rate tender) 

under which the lowest freight rates are applicable;

(B) the seals affixed to the conveyance, including the serial 

number on them, or other identification;

(C) the length and capacity of cars or trucks ordered and 

furnished;

(D) other pertinent information required to effect prompt delivery 

to the consignee, including name delivery address, postal 

address and ZIP code of consignee, routing, etc.;

(E) special instructions or annotations requested by the judiciary 

for commercial bills of lading (for example, “This shipment is 

the property of, and the freight charges paid to the carrier will 

be reimbursed by, the judiciary”); and

(F) the signature of carrier's agent and the date the shipment is 

received by the carrier.

(vi) distribute the copies of the bill of lading, or other transportation 

receipt, as directed by the judiciary.

(vii) supply with each invoice a memorandum copy of the bill of lading, 

clearly indicating the signature of the carrier's agent, date of pickup, 

and the weight accepted by the carrier. If the weight is determined 

by the carrier after pickup, it shall be annotated on the 

memorandum copy of the bill of lading along with the following:

• "I certify that the weight information is that obtained from the 

carrier.

• Signed:”

(3) If the judiciary has not specified otherwise, the contractor shall ship on 

commercial bills of lading.

(4) If the judiciary specifies that shipment is to be made on endorsed 

commercial bills of lading for transportation charges up to $100, the 

contractor shall be required to prepay all transportation charges, not to 

exceed $100, per shipment.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(5) The contractor shall annotate the commercial bill of lading as follows:

"Property of the United States Judiciary"

(6) The actual transportation costs, not to exceed $100 per shipment, will be 

added to the contractor's invoice as a separate item. The costs shall be 

based on the lowest published rate on file with the Interstate Commerce 

Commission or any state regulatory body. They shall be supported by 

freight or express receipts marked "prepaid."

(end)

Clause 2-25B, Commercial Bill of Lading Notations

Include the following clause as prescribed in § 220.25.70(b) (Product-Related Delivery 

Clauses and Provisions).

Commercial Bill of Lading Notations (JAN 2003)

If the contracting officer authorizes products to be shipped on a 

commercial bill of lading and the contractor will be reimbursed these 

transportation costs as direct allowable costs, the contractor shall ensure 

before shipment is made that the commercial shipping documents are 

annotated as follows:

“Transportation is for the judiciary [name of the specific court unit or 

federal public defender organization] and the actual total transportation 

charges paid to the carrier(s) by the consignor or consignee are 

assignable to, and will be reimbursed by, the judiciary.”

(end)

Clause 2-30A, Time of Delivery

Include the following clause as prescribed in § 220.25.70(c) (Product-Related Delivery 

Clauses and Provisions).

Time of Delivery (APR 2013)

(a) The judiciary requires all items to be delivered by no later than _______. The 

offeror proposes delivery of all items by no later than __________.

(b) The judiciary will evaluate equally, as regards time of delivery, offers that 

propose delivery within the period specified above. Offers that propose delivery 

that will not clearly fall within the required delivery period will be deemed 

unacceptable. The judiciary reserves the right to award on the basis of either the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

required delivery schedule or the proposed delivery schedule when an offeror 

proposes an earlier delivery schedule than required above. If the offeror 

proposes no other delivery schedule, the required delivery schedule above will 

apply.

(c) The required delivery schedule may be stated in terms of days after the effective 

date of the contract award or specific dates.

(end)

Clause 2-30B, Desired And Required Time Of Delivery

Include the following clause as prescribed in § 220.25.70(d) (Product-Related Delivery 

Clauses and Provisions), and fill in the tables where indicated.

Desired And Required Time Of Delivery (JAN 2010)

(a) The judiciary desires delivery to be made according to the following schedule:

Desired Delivery Schedule

(Contracting Officer insert specific details)

Item No. Quantity Within Applicable Specified 

Time Frame (i.e., number of 

calendar days after award, after 

contract start date, or after a 

specified date, etc.)

If the offeror is unable to meet the desired delivery schedule, it may, 

without prejudicing evaluation of its offer, propose a delivery schedule 

below. However, the offeror's proposed delivery schedule shall not extend 

the delivery period beyond the time for delivery in the judiciary's required 

delivery schedule as follows:

Required Delivery Schedule

(Contracting Officer insert specific details)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

Item No. Quantity Within Applicable Specified 

Time Frame (i.e., number of 

calendar days after award, after 

contract start date, or after a 

specified date, etc.)

Offers that propose delivery of a quantity under such terms or conditions 

that delivery will not clearly fall within the applicable required delivery 

period specified above, will be considered non-responsive and rejected. If 

the offeror proposes no other delivery schedule, the desired delivery 

schedule above will apply.

Offeror’s Proposed Delivery Schedule

(Offeror insert specific details)

Item No. Quantity Within Applicable Specified 

Time Frame (i.e., number of 

calendar days after award, after 

contract start date, or after a 

specified date, etc.)

(b) Attention is directed to the Contract Award provision of the solicitation that 

provides that a written award or acceptance of offer mailed or otherwise 

furnished to the successful offeror results in a binding contract. The judiciary will 

mail or otherwise furnish to the offeror an award or notice of award not later than 

the day the award is dated. Therefore, the offeror shall compute the time 

available for performance beginning with the actual date of award, rather than the 

date the written notice of award is received from the contracting officer through 

the ordinary mails. However, the judiciary will evaluate an offer that proposes 

delivery based on the contractor's date of receipt of the contract or notice of 

award by adding (1) five calendar days for delivery of the award through the 

ordinary mails, or (2) one working day if the solicitation states that the contract or 

notice of award will be transmitted electronically. (The term "working day" 

excludes weekends and U.S. federal holidays.) If, as so computed, the offered 

delivery date is later than the required delivery date, the offer will be considered 

non-responsive and rejected.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

(end)

Clause 2-35 F.o.b. Destination, Within Judiciary’s Premises

Include the following clause as prescribed in § 220.25.70(e) (Product-Related Delivery 

Clauses and Provisions).

F.o.b. Destination, Within Judiciary’s Premises (JAN 2003)

(a) The term “F.o.b. destination, within judiciary’s premises,” as used in this clause, 

means free of expense to the judiciary delivered and laid down within the doors 

of the judiciary’s premises, including delivery to specific rooms within a building if 

so specified.

(b) The contractor shall:

(1) (i) pack and mark the shipment to comply with contract specifications; 

or

(ii) in the absence of specifications, prepare the shipment in 

conformance with carrier requirements;

(2) prepare and distribute commercial bills of lading;

(3) deliver the shipment in good order and condition to the point of delivery 

specified in the contract;

(4) be responsible for any loss of and/or damage to the products occurring 

before receipt of the shipment by the judiciary at the delivery point 

specified in the contract;

(5) furnish a delivery schedule and designate the mode of delivering carrier; 

and

(6) pay and bear all charges to the specified point of delivery.

(end)

Clause 2-40A, Variation in Quantity

Include the following clause as prescribed in § 220.25.70(f) (Product-Related Delivery 

Clauses and Provisions).

Variation in Quantity (JAN 2003)

(a) A variation in the quantity of any item called for by this contract will not be 

accepted unless the variation has been caused by conditions of loading, 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

shipping, or packing, or allowances in manufacturing processes, and then only to 

the extent, if any, specified in paragraph (b) of this clause.

(b) The permissible variation shall be limited to:

___ Percent increase [contracting officer insert percentage]

___ Percent decrease [contracting officer insert percentage]

This increase or decrease shall apply to __________.*

* Contracting officer will insert in the blank the designation(s) to which the percentages 

apply, such as:

(1) The total contract quantity;

(2) Item 1 only;

(3) Each quantity specified in the delivery schedule;

(4) The total item quantity for each destination; or

(5) The total quantity of each item without regard to destination.

(end)

Clause 2-40B, Delivery of Excess Quantities

Include the following clause as prescribed in § 220.25.70(g) (Product-Related Delivery 

Clauses and Provisions).

Delivery of Excess Quantities (JAN 2003)

The contractor is responsible for the delivery of each item quantity within 

allowable variations, if any. If the contractor delivers, and the judiciary 

receives, quantities of any item in excess of the quantity called for (after 

considering any allowable variation in quantity), such excess quantities will 

be treated as being delivered for the convenience of the contractor. The 

judiciary may retain such excess quantities up to $250 in value without 

compensating the contractor therefore, and the contractor waives all right, 

title, or interests therein. Quantities in excess of $250 will, at the option of 

the judiciary, either be returned at the contractor's expense or retained 

and paid for by the judiciary at the contract unit price.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

Clause 2-45, Packaging and Marking

Include the following clause as prescribed in § 220.25.70(h) (Product-Related Delivery 

Clauses and Provisions).

Packaging and Marking (AUG 2004)

(a) Unless otherwise specified, preservation, packaging, and marking for all items 

delivered hereunder shall be in accordance with commercial practice and 

adequate to insure acceptance by common carrier and safe arrival at destination. 

The contractor shall place the contract number and delivery order number, or 

purchase order, as applicable, on or adjacent to the exterior shipping label or 

include them on the internal packing slip. For any magnetic media provided, the 

contractor shall provide extra markings for protection against exposure to 

magnetic fields or temperature extremes.

(b) All documentation, reports, and other deliverables shall be clearly marked with 

the project title, contract number, and delivery order number (when applicable). 

Unless otherwise specified, all items shall be packaged and packed in 

accordance with normal commercial practices (e.g., if magnetic media is 

involved, extra marking shall be considered for protection against exposure to 

magnetic fields or temperature).

(end)

Clause 2-50, Continuity of Services

Include the following clause as prescribed in § 220.25.80(a) (Service-Related Provisions 

and Clauses).

Continuity of Services (JAN 2003)

(a) The contractor recognizes that the services under this contract are vital to the 

judiciary and shall be continued without interruption and that, upon contract 

expiration, a successor, either the judiciary or another contractor, may continue 

them. The contractor agrees to:

(1) furnish phase-in training, and

(2) exercise its best efforts and cooperation to effect an orderly and efficient 

transition to a successor.

(b) The contractor shall, upon the contracting officer’s written notice:

(1) furnish phase-in, phase-out services for up to 90 days after this contract 

expires, and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(2) negotiate in good faith a plan with a successor to determine the nature 

and extent of phase-in, phase-out services required. The plan shall 

specify a training program and a date for transferring responsibilities for 

each division of work described in the plan, and will be subject to the 

contracting officer’s written approval. The contractor shall provide 

sufficient experienced personnel during the phase-in, phase-out period to 

ensure that the services called for by this contract are maintained at the 

required level of proficiency.

(c) The contractor shall allow as many personnel as practicable to remain on the job 

to help the successor maintain the continuity and consistency of the services 

required by this contract. The contractor also shall disclose necessary personnel 

records and allow the successor to conduct on-site interviews with these 

employees. If selected employees are agreeable to the change, the contractor 

shall release them at a mutually agreeable date and negotiate transfer of their 

earned fringe benefits to the successor.

(d) The contractor shall be reimbursed for all reasonable phase-in, phase-out costs 

(i.e., costs incurred within the agreed period after contract expiration that result 

from phase-in, phase-out operations) and a fee (profit) not to exceed a pro rata 

portion of the fee (profit) under this contract.

(end)

Clause 2-55, Privacy or Security Safeguards

Include the following clause as prescribed in § 220.25.80(b) (Service-Related Provisions 

and Clauses).

Privacy or Security Safeguards (JAN 2003)

(a) The contractor shall not publish or disclose in any manner, without the 

contracting officer's written consent, the details of any safeguards either 

designed or developed by the contractor under this contract or otherwise 

provided by the judiciary.

(b) To the extent required to carry out a program of inspection to safeguard against 

threats and hazards to the security, integrity, and confidentiality of judiciary data, 

the contractor shall afford the judiciary access to the contractor's facilities, 

installations, technical capabilities, operations, documentation, records, and 

databases.

(c) If new or unanticipated threats or hazards are discovered by either the judiciary 

or the contractor, or if existing safeguards have ceased to function, the 

discoverer shall immediately bring the situation to the attention of the other party.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

(end)

Clause 2-60, Stop-Work Order

Include the following clause as prescribed in § 220.25.80(c) (Service-Related Provisions 

and Clauses).

Stop-Work Order (JAN 2010)

(a) The contracting officer may, at any time, by written order to the contractor, 

require the contractor to stop all, or any part, of the work called for by this 

contract for a period of 90 days after the order is delivered to the contractor, and 

for any further period to which the parties may agree. The order will 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. Within a period of 90 

days after a stop-work order is delivered to the contractor, or within any 

extension of that period to which the parties shall have agreed, the contracting 

officer will 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, clause of this contract.

(b) If a stop-work order issued under this clause is canceled or the period of the 

order or any extension thereof expires, the contractor shall resume work. The 

contracting officer will make an equitable adjustment in the delivery schedule or 

contract price, or both, and the contract will 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 this 

contract; and

(2) the contractor asserts its right to the 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 the claim submitted at any time before final payment under this 

contract.

(c) If a stop-work order is not canceled and the work covered by the order is 

terminated for the convenience of the judiciary, the contracting officer will allow 

reasonable costs resulting from the stop-work order in arriving at the termination 

settlement.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

(d) If a stop-work order is not canceled and the work covered by the order is 

terminated for default, the contracting officer will allow, by equitable adjustment 

or otherwise, reasonable costs resulting from the stop-work order.

(end)

Clause 2-65, Key Personnel

Include the following clause as prescribed in § 220.25.80(d) (Service-Related Provisions 

and Clauses) and § 520.75(b) (Provisions and Clauses).

Key Personnel (APR 2013)

(a) Individuals identified below as key personnel and accepted for this contract are 

expected to remain dedicated to this contract. However, in the event that it 

becomes necessary for the contractor to replace any of the individuals 

designated as key personnel, the contractor shall request such substitutions in 

accordance with this clause. Substitution of key personnel will be considered 

under the following circumstances only:

(1) All substitutes shall have qualifications at least equal to those of the 

person being replaced.

(2) All appointments of key personnel shall be approved in writing by the 

contracting officer, and no substitutions of such personnel shall be made 

without the advance written approval of the contracting officer.

(3) Except as provided in paragraph (4) of this clause, at least 30 days (60 

days if security clearance is required) in advance of the proposed 

substitution, all proposed substitutions of key personnel shall be submitted 

in writing to the contracting officer, including the information required in 

paragraph (5) of this provision.

(4) The following identifies the requirements for situations where individuals 

proposed as key personnel become unavailable because of sudden 

illness, death or termination of employment. The contractor shall within 5 

work days after the event, notify the contracting officer in writing of such 

unavailability. If the event happens after award, the contracting officer will 

determine if there is an immediate need for a temporary substitute and a 

continuing requirement for a permanent substitute for the key personnel 

position. The contracting officer will promptly inform the contractor of this 

determination. If the contracting officer specifies that a temporary 

substitute is required, the contractor shall as soon as is practical identify 

who will be performing the work as a temporary substitute. The temporary 

substitute will then start performance on a date mutually acceptable to the 

contracting officer and the contractor. Within 15 work days following the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

event, if the contracting officer specifies that a permanent substitute is 

required, the contractor shall submit, in writing, for the contracting officer’s 

approval, the information required in (5) and (6) below, for a proposed 

permanent substitute for the unavailable individual. The approval process 

will be the same as (7) below.

(5) Request for substitution of key personnel shall provide a detailed 

explanation of the circumstances necessitating substitution, a resume of 

the proposed substitute, and any other information requested by the 

contracting officer to make a determination as to the appropriateness of 

the proposed substitute’s qualifications. All resumes shall be signed by 

the proposed substitute and his/her formal (per company accepted 

organizational chart) direct supervisor or higher authority.

(6) As a minimum (or as otherwise specified in the solicitation), resumes shall 

include the following:

(a) name of person;

(b) functional responsibility;

(c) education (including, in reverse chronological order, colleges and/or 

technical schools attended (with dates), degree(s)/certification(s) 

received, major field(s) of study, and approximate number of total 

class hours);

(d) citizenship status;

(e) experience including, in reverse chronological order for up to ten 

years, area(s) or work in which a person is qualified, company and 

title of position, approximate starting and ending dates 

(month/year), concise descriptions of experience for each position 

held including specific experience related to the requirements of 

this contract; and

(f) certification that the information contained in the resume is correct 

and accurate (signature of key person and date signed, and 

signature of the supervisor or higher authority and date signed will 

be accepted as certification).

(7) The contracting officer will promptly notify the contractor in writing of 

his/her approval or disapproval of all requests for substitution of key 

personnel. All disapprovals will require re-submission of another 

proposed substitution within 15 days by the contractor.

(b) The following individuals are designated as key personnel under this contract:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

______________________________________________________________

______________________________________________________________

(end)

Provision 2-70, Site Visit

Include the following provision as prescribed in § 220.25.80(e) (Service-Related 

Provisions and Clauses).

Site Visit (JAN 2003)

Offerors or quoters are urged and expected to inspect the site where 

services are to be performed and to satisfy themselves regarding all 

general and local conditions that may affect the cost of contract 

performance, to the extent that the information is reasonably obtainable. In 

no event will failure to inspect the site constitute grounds for a claim after

contract award.

(end)

Clause 2-75, Liquidated Damages

Include the following clause as prescribed in § 220.30.50 (Clause), inserting the amount 

where indicated.

Liquidated Damages (JAN 2003)

(a) If the contractor fails to complete delivery of the products, or performance of the 

services within the time specified in this contract, or any extension, the contractor 

shall, in place of actual damages, pay to the judiciary $_______________ 

(contracting officer insert amount) for liquidated damages as agreed for each 

calendar day of delay.

(b) Alternatively, if completion of delivery or performance is delayed beyond the 

contract dates, the judiciary may, at its sole discretion, terminate this contract in 

whole or in part under the Termination for Default clause, and the contractor shall 

be liable for the agreed liquidated damages accruing until the time the judiciary 

may reasonably obtain delivery or performance of similar products or services. 

The liquidated damages will be in addition to excess costs of re-procurement.

(c) The contractor will not be charged with liquidated damages when the delay in 

completion of delivery or performance arises out of causes beyond the control 

and without the fault or negligence of the contractor.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

(end)

Clause 2-80, Judiciary Property

Include the following clause as prescribed in § 220.35(c) (Judiciary Property).

Judiciary Property (JAN 2003)

(a) Title to judiciary property provided under this contract remains in the judiciary. 

The contractor may use the judiciary property only in connection with this 

contract. The contractor shall secure judiciary property and maintain adequate 

property control records in accordance with sound industrial practice and shall 

make them available for judiciary inspection at all reasonable times.

(b) Upon delivery of judiciary property to the contractor, the contractor assumes the 

risk and responsibility for its loss or damage, except:

(1) for reasonable wear and tear;

(2) to the extent property is consumed in performing the contract; or

(3) as otherwise provided in the contract.

(c) Upon completing this contract, the contractor shall follow the contracting officer's 

instructions regarding the disposition of all judiciary property not consumed in 

performing this contract or previously delivered to the judiciary. The contractor 

shall prepare for shipment, deliver F.o.b. origin, or dispose of the judiciary 

property, as directed or authorized by the contracting officer. The net proceeds 

of any such disposal will be credited to the contract price or will be paid to the 

judiciary as directed by the contracting officer.

(d) The items of property are listed in an inventory of items attached to this contract 

and the contractor shall notify the judiciary on any required adjustments.

(end)

Provision 2-85A, Evaluation Inclusive of Options

Include the following provision as prescribed in § 220.40.60(a)(1) (Evaluation of Options 

Provisions).

Evaluation Inclusive of Options (JAN 2003)

(a) The judiciary will evaluate offers for purposes of award by adding the total price 

for all options to the total price for the basic requirement. Evaluation of options 

does not obligate the judiciary to exercise the option(s).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(b) Any offer that is materially unbalanced as to prices for basic and option quantities 

may be rejected. An unbalanced offer is one that is based on prices significantly 

less than cost for some work and prices that are significantly overstated for other 

work.

(end)

Provision 2-85B, Evaluation Exclusive of Options

Include the following provision as prescribed in § 220.40.60(a)(2) (Evaluation of Options 

Provisions).

Evaluation Exclusive of Options (JAN 2003)

The judiciary will evaluate offers for award purposes by including only the 

price for the basic requirement; i.e., options will not be included in the 

evaluation for award purposes.

(end)

Provision 2-85C, Evaluation of Options Exercised at Time of Contract 

Award

Include the following provision as prescribed in § 220.40.60(a)(3) (Evaluation of Options 

Provisions).

Evaluation of Options Exercised at Time of Contract Award (JAN 

2003)

Except when it is determined not to be in the judiciary's best interests, the 

judiciary will evaluate the total price for the basic requirement together 

with any option(s) exercised at the time of award.

(end)

Clause 2-90A, Option for Increased Quantity

Include the following clause as prescribed in § 220.40.60(b)(1) (Option Clauses).

Option for Increased Quantity (APR 2013)

The judiciary may increase the quantity of products called for in this 

contract by requiring the delivery of the numbered line item(s) identified as 

an option item, in the quantity and at the price set forth in the line item(s). 

The contracting officer may exercise this option, at any time within the 

period specified in the contract, by giving written notice to the contractor. 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

Delivery of the items added by the exercise of this option will continue 

immediately after, and at the same rate as, delivery of like items called for 

under this contract, unless the parties otherwise agree.

(end)

Clause 2-90B, Option for Increased Quantity – Separately Priced Line Item

Include the following clause as prescribed in § 220.40.60(b)(2) (Option Clauses).

Option for Increased Quantity – Separately Priced Line Item (APR 

2013)

The judiciary may require the delivery of the numbered line item, identified 

as an option item, in the quantity and at the price stated in the line item. 

The contracting officer may exercise the option by written notice to the 

contractor within [insert in the clause the period of time in which the 

contracting officer has to exercise the option]. Delivery of added items 

shall continue at the same rate that like items are called for under the 

contract, unless the parties otherwise agree.

(end)

Clause 2-90C, Option to Extend Services

Include the following clause as prescribed in § 220.40.60(b)(3) (Option Clauses).

Option to Extend Services (APR 2013)

The judiciary may require continued performance of any services within 

the limits and at the rates specified in the contract. These rates may be 

adjusted only as a result of revisions to prevailing labor rates provided by 

the Secretary of Labor. The option provision may be exercised more than 

once, but the total extension of performance hereunder shall not exceed 6 

months. The contracting officer may exercise the option by written notice 

to the contractor no later than _____ calendar days prior to the contract’s 

current expiration date [insert the period of time within which the 

contracting officer may exercise the option].

(end)

Clause 2-90D, Option to Extend the Term of the Contract

Include the following clause as prescribed in § 220.40.60(b)(4) (Option Clauses).

Option to Extend the Term of the Contract (APR 2013)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

(a) The judiciary may extend the term of this contract by written notice to the 

contractor no later than ______ calendar days prior to the contract’s current 

expiration date [insert the period of time within which the contracting officer may 

exercise the option]; provided that the judiciary gives the contractor a preliminary 

written notice of its intent to extend at least ______ calendar days [60 days 

unless a different number of days is inserted] before the contract expires. The 

preliminary notice does not commit the judiciary to an extension.

(b) If the judiciary exercises this option, the extended contract shall be considered to 

include this option clause.

(c) The total duration of this contract, including the exercise of any options under this 

clause, shall not exceed ___________ (months) (years).

(end)

Clause 2-95, Material Requirements

Include the following clause as prescribed in § 220.25.70(i) (Product-Related Delivery 

Clauses and Provisions).

Material Requirements (JAN 2003)

(a) As used in this clause:

(1) “new" means composed of previously unused components, whether 

manufactured from virgin material, recovered material in the form of raw 

material, or materials and by-products generated from, and reused within, 

an original manufacturing process; provided that the products meet 

contract requirements, including but not limited to, performance, reliability, 

and life expectancy.

(2) "reconditioned" means restored to the original normal operating condition 

by readjustments and material replacement.

(3) "recovered material" means waste materials and by-products recovered or 

diverted from solid waste, but the term does not include those materials 

and by-products generated from, and commonly reused within, an original 

manufacturing process.

(4) "re-manufactured" means factory rebuilt to original specifications.

(5) "virgin material" means:

(i) previously unused raw material, including previously unused 

copper, aluminum, lead, zinc, iron, other metal or metal ore; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(ii) any undeveloped resource that is, or with new technology will 

become, a source of raw materials.

(b) Unless this contract otherwise requires virgin material or products composed of 

or manufactured from virgin material, the contractor shall provide products that 

are new, reconditioned, or re-manufactured, as defined in this clause.

(c) An offer to provide unused former government surplus property shall include a 

complete description of the material, the quantity, the name of the government 

agency from which acquired, and the date of procurement.

(d) An offer to provide used, reconditioned, or re-manufactured products shall 

include a detailed description of such products and shall be submitted to the 

contracting officer for written approval.

(e) Used, reconditioned, or re-manufactured products, or unused former government 

surplus property, may be used in performance if the contractor has proposed the 

use of such products, and the contracting officer has authorized their use.

(end)

Provision 2-100, Brand Name or Equal

Include the following provision as prescribed in § 230.40.30 (Provision).

Brand Name or Equal (APR 2013)

(a) One or more items called for by this solicitation have been identified by a brandname-or-equal product description. Offers offering equal products will be 

considered for award if these products are clearly identified and are determined 

by the judiciary to contain all of the essential characteristics of the brand-name 

products referenced in the solicitation.

(b) Unless the offeror clearly indicates in the offer that the offer is for an equal 

product, the offer will be considered as offering a brand-name product referenced 

in the solicitation.

(c) If the offeror proposes to furnish an equal product, the brand name and model or 

catalog number, if any, of the product to be furnished shall be inserted in the 

space provided in the solicitation. The evaluation of offers and the determination 

as to equality of the product offered will be based on information furnished by the 

offeror or identified in the offer, as well as other information reasonably available 

to the purchasing activity. The purchasing activity is not responsible for locating 

or obtaining any information not identified in the offer and reasonably available to 

the purchasing activity. Accordingly, to ensure that sufficient information is 

available, the offeror shall furnish as a part of the offer:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

(1) all descriptive material (such as cuts, illustrations, drawings, or other 

information) necessary for the purchasing activity to establish exactly what 

the offeror proposes to furnish and to determine whether the product 

offered meets the requirements of the solicitation; or

(2) specific references to information previously furnished or to information 

otherwise available to the purchasing activity to permit a determination as 

to equality of the product offered.

(3) If the offeror proposes to modify a product so as to make it conform to the 

requirements of the solicitation, the offeror shall:

(i) Include in the offer a clear description of the proposed 

modifications; and

(ii) Clearly mark any descriptive material to show the proposed 

modifications.

(end)

Provision 2-105, Economic Purchase Quantity – Products

Include the following provision as prescribed in § 220.25.70(j) (Product-Related Delivery 

Clauses and Provisions).

Economic Purchase Quantity – Products (JAN 2003)

(a) Offerors are invited to state an opinion on whether the quantity(ies) of products 

on which offers or quotes are requested in this solicitation is (are) economically 

advantageous to the judiciary.

__________________________________________________________

__________________________________________________________

__________________________________________________________

(b) Each offeror who believes that procurements in different quantities would be 

more advantageous is invited to recommend an economic purchase quantity. If 

different quantities are recommended, a total and a unit price shall be quoted for 

applicable items. An economic purchase quantity is that quantity at which a 

significant price break occurs. If there are significant price breaks at different 

quantity points, this information is desired as well.

Offeror’s Recommendations

Item Quantity Price Quotation Total
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

(c) The information requested in this provision is being solicited to avoid 

procurements in disadvantageous quantities and to assist the judiciary in 

developing a database for future procurements of these items. However, the 

judiciary reserves the right to amend or cancel the solicitation and re-solicit with 

respect to any individual item in the event quotations received and the judiciary's 

requirements indicate that different quantities shall be acquired.

(end)

Clause 2-110, Option to Purchase Equipment

Include the following clause as prescribed in § 220.45.70 (Clauses).

Option to Purchase Equipment (JAN 2003)

(a) The judiciary may purchase the equipment provided on a lease or rental basis 

under this contract. The contracting officer may exercise this option only by 

providing a unilateral modification to the contractor. The effective date of the 

purchase will be specified in the unilateral modification and may be any time 

during the period of the contract, including any extensions thereto.

(b) Except for final payment and transfer of title to the judiciary, the lease or rental 

portion of the contract becomes complete and lease or rental charges shall be 

discontinued on the day immediately preceding the effective date of purchase 

specified in the unilateral modification required in paragraph (a) of this clause.

(c) The purchase conversion cost of the equipment shall be computed as of the 

effective date specified in the unilateral modification required in paragraph (a) of 

this clause, on the basis of the purchase price set forth in the contract, minus the 

total purchase option credits accumulated during the period of lease or rental, 

calculated by the formula contained elsewhere in this contract.

(d) The accumulated purchase option credits available to determine the purchase 

conversion cost will also include any credits accrued during a period of lease or 

rental of the equipment under any previous judiciary contract if the equipment 

has been on continuous lease or rental. The movement of equipment from one 

site to another site shall be "continuous rental."

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

Clause 2-115, Terms for Commercial Advance Payment of Purchases

Include the following clause as prescribed in § 220.55.70(a) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment).

Terms for Commercial Advance Payment of Purchases (APR 2013)

(a) Contractor Entitlement to Advance Payment

The contractor may request, and the judiciary may authorize, payment in 

advance when: the payment requested is properly due in accordance with this 

contract; the products or services due under the contract will be delivered or 

performed in accordance with the contract; and there has been no impairment or 

diminution of the judiciary’s security under this contract.

(b) Special Terms Regarding Termination for Default

If this contract is terminated for default, the contractor shall, on demand, repay to 

the judiciary the amount of unliquidated advance payments. The judiciary shall 

be liable for no payment except as provided by Clause 7-230, Termination for 

Default – Fixed Price Products and Services.

(c) Security for Advance Payment

The contractor must provide adequate security prior to any authorization for 

advance payment. In the event the contractor fails to provide adequate security, 

as required by this clause, no advance payment shall be made under this 

contract. The contracting officer may determine that the contractor’s financial 

condition provides adequate security. If the contracting officer does not consider 

the contractor’s financial condition to provide adequate security, the contractor 

must provide an irrevocable letter of credit from a federally insured financial 

institution in an amount equal to the advance payment requested. If, at any time, 

the contracting officer determines that the security provided by the contractor is 

insufficient, the contractor shall promptly provide such additional security as the 

contracting officer determines necessary. In the event the contractor fails to 

provide such additional security, the contracting officer may collect or liquidate 

such security that has been provided and suspend further payments to the 

contractor; and the contractor shall repay to the judiciary the amount of 

unliquidated advance payments as the contracting officer at his / her sole 

discretion deems repayable.

(d) Reservation of Rights

(1) No payment or other action by the judiciary under this clause shall:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

(i) Excuse the contractor from performance of obligations under this 

contract; or

(ii) Constitute a waiver of any of the rights or remedies of the parties 

under the contract.

(2) The judiciary’s rights and remedies under this clause:

(i) Shall not be exclusive, but rather shall be in addition to any other 

rights and remedies provided by law or this contract; and

(ii) Shall not be affected by delayed, partial, or omitted exercise of any 

right, remedy, power, or privilege, nor shall such exercise or any 

single exercise preclude or impair any further exercise under this 

clause or the exercise of any other right, power, or privilege of the 

judiciary.

(e) Limitation on Frequency of Financing Payments

Contractor financing payments shall be provided no more frequently than 

monthly.

(f) Dates for Payment

A payment under this clause is a contract financing payment and not subject to 

the interest penalty provisions of the Prompt Payment Act.

(g) Restrictions on Novation

While any advance payments made under this contract remain outstanding with 

respect to performance (i.e., the judiciary has not received all of the performance 

which has been paid in advance), the contractor shall not substantially change 

the management, ownership, or control of the corporation without the prior 

written consent of the contracting officer.

(h) Prohibition Against Assignment

The contractor shall not assign this contract, any interest therein, or any claim 

under the contract to any party.

(end)

Alternate I (OCT 2006): In accordance with § 220.55.70(b) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment), add the following 

paragraph to the basic clause in contracts for photocopy equipment maintenance 

agreements which authorize advance payment
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

(i) Any advance payment authorized by this contract is not inclusive of excess copy 

charges which may be incurred. These charges shall be invoiced in arrears, 

either at the end of the twelve month period of performance or when the 

cumulative amount of such charges reaches $500.00, whichever occurs first.

Clause 2-120, Submission of Invoice

Include the following clause as prescribed in § 220.55.70(c) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment).

Submission of Invoice (OCT 2006)

Upon satisfactory completion of the first month of performance under this 

contract and approval by the contracting officer, the contractor may 

invoice and receive payment for a maximum of twelve months of 

performance.

(end)

Clause 2-125, Security for Advance Payment

Include the following clause as prescribed in § 220.55.70(d) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment).

Security for Advance Payment (APR 2013)

The contractor’s financial condition has been accepted as adequate 

security for advance payments under this contract. Should the contracting 

officer determine that the contractor’s financial condition has changed to 

such an extent that it can no longer be considered adequate security, the 

contracting officer may exercise the judiciary’s rights to require other 

security under paragraph (c), Security for Advance Payment, of Clause 2-

115, Terms for Commercial Advance Payment of Purchases.

(end)

Clause 2-130, Energy Efficiency in Energy-Consuming Products

Include the following clause as prescribed in § 220.60.70(a) (Clauses).

Energy Efficiency in Energy-Consuming Products (APR 2013)

(a) Definition. As used in this clause:

“Energy-efficient product”:

(1) Means a product that:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

(i) Meets Department of Energy and Environmental Protection Agency 

criteria for use of the Energy Star trademark label; or

(ii) Is in the upper 25 percent of efficiency for all similar products as 

designated by the Department of Energy’s Federal Energy 

Management Program (FEMP)

(2) The term “product” does not include any energy-consuming product or 

system designed or procured for combat or combat-related missions (see

42 U.S.C. § 8259b).

(b) The contractor shall ensure that energy-consuming products are energy efficient 

products (i.e., ENERGY STAR® products or FEMP-designated products) at the 

time of contract award, for products that are:

(1) Delivered;

(2) Acquired by the contractor for use in performing services within judiciary 

facilities;

(3) Furnished by the contractor for use by the judiciary; or

(4) Specified in the design of a building or work, or incorporated during its 

construction, renovation, or maintenance.

(c) The requirements of paragraph (b) apply to the contractor (including any 

subcontractor) unless:

(1) The energy-consuming product is not listed in the ENERGY STAR®

Program or FEMP; or

(2) Otherwise approved in writing by the contracting officer.

(d) Information about these products is available at:

(1) ENERGY STAR® ; and

(2) FEMP.

(end)

Clause 2-135, Acquisition of EPEAT®-Registered Personal Computer 

Products

Include the following clause as prescribed in § 220.60.70(b) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

Acquisition of EPEAT®-Registered Personal Computer Products 

(MAR 2019)

(a) Definitions. As used in this clause—

“Computer” means a device that performs logical operations and processes data. 

Computers are composed of, at a minimum:

(1) A central processing unit (CPU) to perform operations;

(2) User input devices such as a keyboard, mouse, digitizer, or game 

controller; and

(3) A computer display screen to output information.

Computers include both stationary and portable units, including desktop 

computers, integrated desktop computers, notebook computers, thin 

clients, and workstations. Although computers must be capable of using 

input devices and computer displays, as noted in (2) and (3) above, 

computer systems do not need to include these devices on shipment to 

meet this definition. This definition does not include server computers, 

gaming consoles, mobile telephones, portable hand-held calculators, 

portable digital assistants (PDAs), MP3 players, or any other mobile 

computing device with displays less than 4 inches, measured diagonally.

“Computer display” means a display screen and its associated electronics 

encased in a single housing or within the computer housing (e.g., notebook or 

integrated desktop computer) that is capable of displaying output information 

from a computer via one or more inputs such as a VGA, DVI, USB, DisplayPort, 

and/or IEEE 1394-2008TM, Standard for High Performance Serial Bus. Examples 

of computer display technologies are the cathode-ray tube (CRT) and liquid 

crystal display (LCD).

“Desktop computer” means a computer where the main unit is intended to be 

located in a permanent location, often on a desk or on the floor. Desktops are 

not designed for portability and utilize an external computer display, keyboard, 

and mouse. Desktops are designed for a broad range of home and office 

applications.

“Integrated desktop computer” means a desktop system in which the computer 

and computer display function as a single unit that receives its AC power through 

a single cable. Integrated desktop computers come in one of two possible forms:

(1) A system where the computer display and computer are physically 

combined into a single unit; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

(2) A system packaged as a single system where the computer display is 

separate but is connected to the main chassis by a DC power cord and 

both the computer and computer display are powered from a single power 

supply. As a subset of desktop computers, integrated desktop computers 

are typically designed to provide similar functionality as desktop systems.

“Notebook computer” means a computer designed specifically for portability and 

to be operated for extended periods of time either with or without a direct 

connection to an AC power source. Notebooks must utilize an integrated 

computer display and be capable of operation off of an integrated battery or other 

portable power source. In addition, most notebooks use an external power 

supply and have an integrated keyboard and pointing device. Notebook 

computers are typically designed to provide similar functionality to desktops, 

including operation of software similar in functionality to that used in desktops.

Docking stations are considered accessories for notebook computers, not 

notebook computers. Tablet PCs, which may use touch-sensitive screens along 

with, or instead of, other input devices, are considered notebook computers.

“Personal computer product” means a computer, computer display, desktop 

computer, integrated desktop computer, or notebook computer.

(b) Under this contract, the Contractor shall deliver, furnish for government use, or 

furnish for contractor use within judiciary facilities, only personal computer 

products that, at the time of submission of proposals and at the time of award, 

were Electronic Product Environmental Assessment Tool (EPEAT)® bronzeregistered or higher.

(c) For information on EPEAT® standard, see: www.epa.gov/epeat.

(end)

Clause 2-140, Judiciary IT Security Standards

Include the following clause as prescribed in § 220.25.80(f) (Service-Related Provisions 

and Clauses).

Judiciary IT Security Standards (APR 2013)

(a) Policy

Contractors developing information systems on behalf of the judiciary are 

required to implement reasonable and effective security safeguards to protect the 

confidentiality, integrity, and availability of judiciary information. To ensure 

judiciary IT security, the contractor shall comply with the requirements below and 

incorporate this clause in any subcontracts involving the systems integration, 

software development, or the provision of software services.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

(b) Contractor Responsibilities

The contractor shall:

(1) Provide the contracting officer's representative (COR) or designee access 

to and information regarding the contractor's information security program 

and the systems used in performance of this contract when requested in 

connection with judiciary efforts to ensure compliance with all the 

contractor’s security requirements, and shall otherwise cooperate in 

assuring adequate security for judiciary data.

(2) Secure and maintain any computer system, including mobile devices, 

which it uses in the performance of this contract as further described 

below. This includes ensuring that security and other applications 

software is kept up-to-date and patched; anti-virus software is installed 

and current; security events are detected and addressed via a formal 

incident response program; physical security of assets is maintained; 

judiciary data is isolated from other customer or contractor data in such a 

manner that data leakage cannot occur between data sets and destruction 

of judiciary data is not impeded; transmissions of sensitive information 

taking place over insecure networks (such as the internet) are secure; and 

business continuity assured in the event of a system failure.

(3) Develop, maintain, and periodically provide to the COR a master asset 

inventory list that reflects all assets, government furnished equipment 

(GFE) or non-GFE that were used to process judiciary information. The 

initial version shall be provided to the COR within six months of contract 

award and updated versions shall be provided at the end of each sixmonth period thereafter (or a period mutually agreed upon between the 

COR and the contractor, not to exceed 12 months).

(4) Ensure that contractor-owned removable media such as removable hard 

drives, flash drives, CDs, and laptops, containing judiciary data, are 

encrypted using a NIST FIPS 140-2 (or its successor) approved product.

(5) Ensure that rules of behavior, approved by the COR, are signed by all 

contractor employees assigned to work on the judiciary contract and 

address at a minimum: authorized and official use; prohibition against 

unauthorized users; and protection of sensitive data and personally 

identifiable information.

(6) Use secure coding practices in a manner that minimizes security flaws 

within the software for any software developed in support of the contract. 

Prior to the execution of a software development task, the contractor shall 

provide the COR a copy of the contractor's secure coding best practices 

policy and upon delivery of the software, the contractor shall certify in 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-35

writing that the contractor complied with the policy in the performance of 

its obligations under the contract or task order.

(7) Represent and warrant that any software developed under a statement of 

work issued by the judiciary shall be free from all computer viruses, 

worms, time-outs, time bombs, back doors, disabling devices and other 

harmful or malicious code intended to or which may damage, disrupt, 

inconvenience or permit access to the software user's or another's 

software, hardware, networks, data or information.

(8) Correct security-related errors in contractor developed software and 

applicable documentation that are not commercial off the shelf that are 

reported by the COR or discovered by the contractor. If the system is in 

production, such corrections shall be completed within one working day of 

the date the contractor discovers or is notified of the error (or a date 

mutually agreed upon between the COR and the contractor not to exceed 

30 working days). If the system is not in production, such corrections shall 

be made within five working days of the date the contractor discovers or is 

notified of the error (or a date mutually agreed upon between the COR 

and the contractor, not to exceed 30 days). Latent defects will be handled 

in the same manner, as soon as they are discovered. If this is a task 

order contract, the requirement applies to any task order issued under the 

contract.

(9) Follow NIST 800-53A Revision 1, Guide for Assessing the Security 

Controls in Federal Information Systems and Organizations, NIST 800-18 

Revision 1, Guide for Developing Security Plans for Federal Information 

Systems, the Judiciary Information Security Framework, version 1.0, the 

Guide to Implementing the Judiciary Information Security Framework, 

version 1.0, and other Administrative Office of the US Courts security 

policies and guidelines, as well as industry best security practices, 

standards, and guidance, to ensure that the information system will be or 

has been developed with reasonable and effective security safeguards in 

place to protect the confidentiality, integrity, and availability of judiciary 

information. If the aforementioned versions and revisions numbers have 

been superseded by a more recent version or revision of the cited 

publication, the most recent version shall be used.

(10) Work with the COR in performing Security Risk Assessments (SRA). This 

includes identifying risks related to the design and functionality of a new 

system against compliance with the judiciary's security risk management 

model. Activities performed during this phase shall include analyzing how 

the security architecture protects the security of judicial information, 

identifying the system boundary, and assessing how management, 

operational, and technical security safeguards are implemented by the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-36

software and hardware, how the system interconnects with other networks 

while maintaining security, and lastly analyzing other inherent design 

features. Procedures, including a checklist, shall be developed by the 

contractor and used to document compliance with baseline security 

requirements and existing guidance from the Administrative Office of the 

US Courts.

(11) Initiate a Systems Security Plan (SSP) consistent with NIST 800-18 

Revision 1 (or its successor publication) during the planning phase of the 

contractor’s systems development life cycle and update the SSP regularly 

until it accurately reflects the production state of the information system. 

The contactor shall submit all drafts to the COR for review and comment. 

Comments shall be addressed to the satisfaction of the COR within five 

business days (or a date mutually agreed upon between the COR and the 

contractor, not to exceed 30 working days) of receipt. After a system is in 

production, the SSP must be updated the lesser of: within 30 calendar 

days of a major change to the system or every two years.

(12) Provide a requirements traceability matrix at the end of analysis phase, 

design phase, build phase, and deployment phase that designates the 

security requirements in a separate section so that they can be traced 

through the development life cycle. The contractor shall also provide the 

application designs and test plan documentation, and source code, if 

applicable, to the COR for review. Lastly, the contractor shall ensure that 

appropriate security management tools are in place to allow for the review 

of security configurations, user identities, etc., so that the implementation 

of security safeguards can be validated.

(13) Have in place configuration management and change control processes to 

prevent unauthorized modifications or additions to the information system 

and to ensure that any changes made to the information system are 

attributable to the individual who implemented the change.

(14) Without exception, prior to making changes that may produce a negative 

impact on security, perform a risk assessment that documents the 

purpose of the change, its security impact, and any compensating 

safeguards that need to be implemented to reduce residual risk. The risk 

assessment documentation shall be provided to the COR prior to change 

implementation.

(15) Perform self-testing of the contractor’s implemented security controls, and 

continuously monitor all testing activities and report on the performance 

and effectiveness of the information system's security safeguards to the 

COR. The specific assessments procedures as outlined in draft NIST 

Special Publication 800-53A (or its successor), shall be used by the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-37

contractor to assess the effectiveness of implemented security 

safeguards. The contractor shall provide security test plans and proposed 

test methods to the project manager within fifteen business days of test 

execution for review and approval.

(16) Provide a determination statement describing the results of each tested 

security safeguard within ten days of security test execution. When the 

results indicate that a safeguard is operating in a partially satisfied or 

otherwise not satisfied condition, the contractor shall document the 

security risk associated with the applicable condition, indicating which 

portions of the security safeguard have not been implemented or applied.

(17) Take corrective action to remedy any deficiencies impeding the successful 

implementation of a security safeguard. Corrective action must be taken 

within ten business days (or a date mutually agreed upon between the 

COR and the contractor not to exceed 30 working days) of discovery.

(18) Include verification and validation to ensure that the corrective action 

successfully remedies any safeguard failures identified during security 

testing.

(19) Provide a determination, in a written form agreed to by the COR, on 

whether the implemented corrective action was adequate to resolve the 

identified information security weaknesses and provide the reasons for 

any exceptions or risk-based decisions.

(20) Report to the COR, within 24 hours of discovery, any suspected or 

confirmed security incidents relative to the systems and data used in 

fulfillment of this contract and to cooperate in the investigation and 

resolution thereof. If a data breach occurs or is discovered outside of 

regular business hours and the COR cannot be reached, the contractor 

shall call the Judiciary Automated Systems Incident Response Capability 

(JASIRC) via phone on (202) 502-4370 or via an email message to either 

SOC@ao.uscourts.gov or JASIRC@ao.uscourts.gov.

(c) Personally Identifiable Information Notification and Use Requirement

If the contractor has access to sensitive personally identifiable information (PII), 

the contractor shall certify that it has a security policy in place that contains 

procedures to promptly notify any individual whose PII was, or is reasonably 

believed to have been, breached. Any notification shall be coordinated with the 

COR, for both method and content of notification, before the notification is 

released. The contractor assumes full responsibility for taking corrective action, 

which may include offering credit monitoring when appropriate.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-38

(d) Pass-through of Security Requirements to Subcontractors

For each subcontractor whose work requires access to judiciary facilities, IT 

resources, or data, the contractor must certify that it has incorporated this clause 

in the subcontract. Any breach by a subcontractor of any of the provisions set 

forth in this clause will be attributed to the contractor.

(e) Certification of Destruction/Sanitization

At the expiration of the contract, the contractor shall return all judiciary 

information and IT resources provided to the contractor during the contract, and 

provide a certification that all contractor assets, e.g., laptops, thumb drives, 

servers, and databases, containing or used to process judiciary information have 

been sanitized or destroyed. Upon submission of the final invoice (or sooner 

upon COR request), the contractor will certify in writing that sanitization and/or 

destruction has been performed pursuant to a method allowable under the NIST 

Special Publication 800-88, Guidelines for Media Sanitization (or its successor). 

This certification shall be in a form substantially similar to AO Form 553 and shall 

include a description of the data and the asset on which it was stored, the date 

and method of destruction/sanitization, and by whom. The contractor’s final 

invoice is due and payable only when it has complied with the requirements of 

this paragraph.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 3)

Clause 3-1, Contractor Use of Mandatory Sources of Products or Services

Include the following clause as prescribed in § 310.20.70 (Clauses).

Contractor Use of Mandatory Sources of Products or Services (JUN 

2012)

(a) Certain products or services to be provided under this contract for use by the 

judiciary are required by law to be obtained from nonprofit agencies participating 

in the program operated by the Committee for Purchase from People Who Are 

Blind or Severely Disabled (the Committee) under Javits-Wagner-O'Day Act, 

(41 U.S.C. §§ 8501-8506). Additionally, certain of these products are available 

from the Defense Logistics Agency (DLA), the General Services Administration 

(GSA), or the Department of Veterans Affairs (VA). The contractor shall obtain 

mandatory products or services to be provided for judiciary use under this 

contract from the specific sources indicated in the contract.

(b) The contractor shall immediately notify the contracting officer if a mandatory 

source is unable to provide the products or services by the time required, or if the 

quality of products or services provided by the mandatory source is 

unsatisfactory. The contractor shall not purchase the products or services from 

other sources until the contracting officer has notified the contractor that the 

Committee or an AbilityOne central nonprofit agency has authorized purchase 

from other sources.

(c) Price and delivery information for mandatory products is available from the 

contracting officer for products obtained through the DLA/GSA/VA distribution 

facilities. For mandatory products or services not available from DLA/GSA/VA 

sources, price and delivery information is available from the appropriate central 

nonprofit agency. Payments will be made directly to the source making delivery. 

Points of contact for AbilityOne central nonprofit agencies are:

(1) National Industries for the Blind (NIB)

1310 Braddock Place

Alexandria, VA 22314-1591

703-310-0500; and

(2) National Industries for the Severely Handicapped (NISH)

8401 Old Courthouse Road

Vienna, VA 22182

571-226-4660
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

(end)

Clause 3-3, Provisions, Clauses, Terms and Conditions – Small Purchases

Include the following clause as prescribed in § 310.50.30(d) (Incidental Items Not on 

Schedule), § 325.30.20(b) (Written Solicitations), and § 325.45.15(b) (Open Market 

Purchases).

Provisions, Clauses, Terms and Conditions – Small Purchases (OCT

2023)

(a) The following provisions are incorporated by reference into the request for 

quotations (RFQ):

(1) Provision 3-70, Determination of Responsibility (JAN 2003)

(2) Provision 3-210, Protests (JUN 2014)

(3) Provision 7-60, Judiciary-Furnished Property or Services (JAN 2003)

(b) The contractor shall comply with the following clauses incorporated by reference:

(1) Clause 1-15, Disclosure of Contractor Information to the Public 

(AUG 2004)

(2) Clause 2-60, Stop-Work Order (JAN 2010)

(3) Clause 3-205, Protest After Award (JAN 2003)

(4) Clause 7-20, Security Requirements (APR 2013)

(5) Clause 7-30, Public Use of the Name of the Federal Judiciary (JUN 2014)

(6) Clause 7-35, Disclosure or Use of Information (APR 2013)

(7) Clause 7-85, Examination of Records (JAN 2003)

(8) Clause 7-125, Invoices (APR 2011)

(9) Clause 7-130, Interest (Prompt Payment) (JAN 2003)

(10) Clause 7-135, Payments (JAN 2003) (Payment means acceptance by the 

inclusion of this clause.)

(11) Clause 7-140, Discounts for Prompt Payment (JAN 2003)

(12) Clause 7-150, Extras (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

(13) Clause 7-185, Changes (APR 2013)

(14) Clause 7-200, Judiciary Delay of Work (JAN 2003) (Applies for products 

and fixed-price services.)

(15) Clause 7-210, Payment for Emergency Closures (APR 2013)

(16) Clause 7-235, Disputes (JAN 2003)

(c) The contractor shall comply with the following clauses, incorporated by 

reference, unless the stated circumstances do not apply:

(1) Clause B-20, Computer Generated Forms (JAN 2003) (Applies when the 

contractor is required to submit data on standard or optional forms.)

(2) Clause 6-60, Rights in Data – General (JUN 2012) (Applies if data will be 

produced, furnished, or acquired under the purchase order.)

(3) Clause 7-145, Government Purchase Card (JAN 2003) (Applies when the 

CO determines that the purchase card can be used to make payments.)

(4) Clause 2-115, Terms for Commercial Advance Payment of Purchases 

(APR 2013) (Applies if advance payment will be authorized.)

(5) Clause 2-115, Alt I (OCT 2006) (Applies if advance payment is authorized 

for photocopy equipment maintenance.)

(6) The following apply to products only:

(a) Clause 2-25A, Delivery Terms and Contractor’s Responsibilities 

(JAN 2003) (Purchase order will specify whether delivery is 

expected at destination or origin.)

(b) Clause 2-45, Packaging and Marking (AUG 2004) (Applies to fixedprice contracts for products or for a service involving furnishing of 

products.)

(c) Clause 3-155, Walsh-Healey Public Contracts Act (JUN 2012) 

(Applies to purchase orders over $15,000 for the manufacturing or 

furnishing of products in the United States, Puerto Rico, or the U.S. 

Virgin Islands.)

(7) The following apply to services only:

(a) Clause 1-1, Employment by the Government (JAN 2003)

(b) Clause 1-5, Conflict of Interest (AUG 2004)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(c) Clause 3-160, Service Contract Labor Standards (MAR 2019) 

(Applies to any purchase order over $2,500, the principal purpose 

of which is to furnish services through the use of service employees 

for work to be performed in the United States, Puerto Rico, Guam, 

or the U.S. Virgin Islands, except where Clause 3-215, Exemption 

from Application of the Service Contract Labor Standards to 

Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements, or Clause 3-225, Exemption from 

Application of the Service Contract Labor Standards to Contracts 

for Certain Services – Requirements apply. See (7)(g) and (7)(h) 

below.)

(d) Clause 7-40, Judiciary-Contractor Relationship (JAN 2003) (Applies 

to all services.)

(e) Clause 7-65, Protection of Judiciary Buildings, Equipment and 

Vegetation (APR 2013) (Applies when services are performed at a 

judiciary building.)

(f) Clause 7-205, Payment for Judiciary Holidays (OCT 2023) (Applies 

to time-and-materials or labor-hour contracts.)

(g) Clause 3-215, Exemption from Application of the Service Contract 

Labor Standards to Contracts for Maintenance, Calibration, or 

Repair of Certain Equipment – Requirements (MAR 2019) (Applies 

if the request for quotation included Provision 3-195 and the 

contractor certified its compliance with the conditions stated in the 

provision.)

(h) Clause 3-225, Exemption from Application of the Service Contract 

Labor Standards to Contracts for Certain Services – Requirements 

(MAR 2019) (Applies if the request for quotation included Provision 

3-220 and the contractor certified its compliance with the conditions 

stated in the provision.)

(d) Inspection/Acceptance

The contractor shall tender for acceptance only those products and/or services 

that conform to the requirements of this contract. The judiciary reserves the right 

to inspect or test any products or services that have been tendered for 

acceptance. The judiciary may require repair or replacement of nonconforming 

products or re-performance of nonconforming services at no increase in contract 

price. The judiciary must exercise these rights:

(1) within a reasonable period of time after the defect or non-conformance 

was discovered or should have been discovered; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(2) before any substantial change occurs in the condition of the item, unless 

the change is due to the defect in the item.

(e) Excusable Delays

The contractor shall be liable for default unless nonperformance is caused by an 

occurrence beyond the reasonable control of the contractor and without its fault 

or negligence, such as acts of God or the public enemy, acts of the government 

in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine 

restrictions, strikes, unusually severe weather, and delays of common carriers. 

The contractor shall notify the contracting officer in writing as soon as it is 

reasonably possible after the commencement of any excusable delay, setting 

forth the full particulars in connection therewith, shall remedy such occurrence 

with all reasonable dispatch, and shall promptly give written notice to the 

contracting officer of the cessation of such occurrence.

(f) Termination for the Judiciary’s Convenience

The judiciary reserves the right to terminate this contract, or any part hereof, for 

its sole convenience. In the event of such termination, the contractor shall 

immediately stop all work hereunder and shall immediately cause any and all of 

its suppliers and subcontractors to cease work. Subject to the terms of this 

contract, the contractor shall be paid a percentage of the contract price reflecting 

the percentage of the work performed prior to the notice of termination, plus 

reasonable charges that the contractor can demonstrate to the satisfaction of the 

judiciary, using its standard record keeping system, have resulted from the 

termination. The contractor shall not be required to comply with the cost 

accounting standards or contract cost principles for this purpose. This paragraph 

does not give the judiciary any right to audit the contractor's records. The 

contractor shall not be paid for any work performed or costs incurred that 

reasonably could have been avoided.

(g) Termination for Cause

The judiciary may terminate this contract, or any part hereof, for cause in the 

event of any default by the contractor, or if the contractor fails to comply with any 

contract terms and conditions, or fails to provide the judiciary, upon request, with 

adequate assurances of future performance. In the event of termination for 

cause, the judiciary shall not be liable to the contractor for any amount for 

products or services not accepted, and the contractor shall be liable to the 

judiciary for any and all rights and remedies provided by law. If it is determined 

that the judiciary improperly terminated this contract for default, such termination 

shall be deemed a termination for convenience.

(h) Warranty
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

The contractor warrants and implies that the items delivered hereunder are 

merchantable and fit for use for the particular purpose described in this contract.

(end)

Provision 3-5, Taxpayer Identification and Other Offeror Information

Include the following provision as prescribed in § 325.30.20(b) (Written Solicitations) 

and § 330.10.30(a) (Provisions and Clauses).

Taxpayer Identification and Other Offeror Information (APR 2011)

(a) Definitions.

“Taxpayer Identification (TIN),” as used in this provision, means the number 

required by the Internal Revenue Service (IRS) to be used by the offeror in 

reporting income tax and other returns. The TIN may be either a social security 

number or an employer identification number.

(b) All offerors shall submit the information required in paragraphs (d) and (e) of this 

provision to comply with debt collection requirements of 31 U.S.C. §§ 7701(c) 

and 3325(d), reporting requirements of 26 U.S.C. §§ 6041, 6041A, and 

implementing regulations issued by the IRS. If the resulting contract is subject to 

the payment reporting requirements, the failure or refusal by the offeror to furnish 

the information may result in a 31 percent reduction of payments otherwise due 

under the contract.

(c) The TIN may be used by the government to collect and report on any delinquent 

amounts arising out of the offeror’s relationship with the government (31 U.S.C. 

§ 7701(c)(3)). If the resulting contract is subject to payment recording 

requirements, the TIN provided hereunder may be matched with IRS records to 

verify the accuracy of the offeror’s TIN.

(d) Taxpayer Identification Number (TIN): ______________________________

[ ] TIN has been applied for.

[ ] TIN is not required, because:

[ ] Offeror is a nonresident alien, foreign corporation or foreign partnership 

that does not have income effectively connected with the conduct of a 

trade or business in the United States and does not have an office or 

place of business or a fiscal paying agent in the United States;

[ ] Offeror is an agency or instrumentality of a foreign government;

[ ] Offeror is an agency or instrumentality of the federal government.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

(e) Type of Organization:

[ ] sole proprietorship;

[ ] partnership;

[ ] corporate entity (not tax-exempt);

[ ] corporate entity (tax-exempt);

[ ] government entity (federal, state or local);

[ ] foreign government;

[ ] international organization per 26 CFR 1.6049-4;

[ ] other _______________.

(f) Contractor representations.

The offeror represents as part of its offer that it is [___], is not [___] 51% owned 

and the management and daily operations are controlled by one or more 

members of the selected socio-economic group(s) below:

[___] Women Owned Business

[___] Minority Owned Business (if selected then one sub-type is required)

[___] Black American Owned

[___] Hispanic American Owned

[___] Native American Owned (American Indians, Eskimos, Aleuts, or Native 

Hawaiians)

[___] Asian-Pacific American Owned (persons with origins from Burma, 

Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China, Taiwan, 

Laos, Cambodia (Kampuchea), Vietnam, Korea, The Philippines, U.S. 

Trust Territory of the Pacific Islands (Republic of Palau), Republic of the 

Marshall Islands, Federated States of Micronesia, the Commonwealth of 

the Northern Mariana Islands, Guam, Samoa, Macao, Hong Kong, Fiji, 

Tonga, Kiribati, Tuvalu, or Nauru)

[___] Subcontinent Asian (Asian-Indian) American Owned (persons with origins 

from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives 

Islands, or Nepal)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

[___] Individual/concern, other than one of the preceding.

(end)

Provision 3-15, Place of Performance

Include the following provision as prescribed in § 330.10.30(b) (Provisions and 

Clauses).

Place of Performance (JAN 2003)

If the judiciary intends or the offeror proposes, in the performance of any 

contract resulting from this solicitation, to use one or more facilities located 

at addresses different from the offeror's address as indicated in this offer, 

the offeror shall include in its offer a statement referencing this provision 

and identifying those facilities by street address, city, country, state, and 

ZIP code, and the name and address of the operators of those facilities if 

other than the offeror.

(end)

Provision 3-20, Certification Regarding Debarment, Suspension, Proposed 

Debarment, and Other Responsibility Matters

Include the following provision as prescribed in § 330.10.30(c) (Provisions and 

Clauses).

Certification Regarding Debarment, Suspension, Proposed 

Debarment, and Other Responsibility Matters (MAR 2019)

(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 ___ are not ___ presently debarred, suspended, 

proposed for debarment, or declared ineligible for the award 

of contracts by any federal agency;

(B) have ___ have not ___, within the three-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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

destruction of records, making false statements, tax evasion, 

violating federal criminal tax laws, or receiving stolen 

property;

(C) are ___ are not ___ presently indicted for, or otherwise 

criminally or civilly charged by a governmental entity with, 

commission of any of the offenses enumerated in paragraph 

(a)(1)(i)(B) of this provision;

(D) have ___, have not ___, within a three-year period preceding 

this offer, been notified of any delinquent federal taxes in an 

amount that exceeds $3,500 for which the liability remains 

unsatisfied.

(1) Federal taxes are considered delinquent if both of the 

following criteria apply:

(i) The tax liability is finally determined. The 

liability is finally determined if it has been 

assessed. A liability is not finally determined if 

there is a pending administrative or judicial 

challenge. In the case of a judicial challenge to 

the liability, the liability is not finally determined 

until all judicial appeal rights have been 

exhausted.

(ii) The taxpayer is delinquent in making payment. 

A taxpayer is delinquent if the taxpayer has 

failed to pay the tax liability when full payment 

was due and required. A taxpayer is not 

delinquent in cases where enforced collection 

action is precluded.

(2) Examples.

(i) The taxpayer has received a statutory notice of 

deficiency, under I.R.C. § 6212, which entitles 

the taxpayer to seek Tax Court review of a 

proposed tax deficiency. This is not a 

delinquent tax because it is not a final tax 

liability. Should the taxpayer seek Tax Court 

review, this will not be a final tax liability until 

the taxpayer has exercised all judicial appeal 

rights.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(ii) The IRS has filed a notice of federal tax lien 

with respect to an assessed tax liability, and 

the taxpayer has been issued a notice under 

I.R.C. § 6320 entitling the taxpayer to request a 

hearing with the IRS Office of Appeals 

contesting the lien filing, and to further appeal 

to the Tax Court if the IRS determines to 

sustain the lien filing. In the course of the 

hearing, the taxpayer is entitled to contest the 

underlying tax liability because the taxpayer 

has had no prior opportunity to contest the 

liability. This is not a delinquent tax because it 

is not a final tax liability. Should the taxpayer 

seek Tax Court review, this will not be a final 

tax liability until the taxpayer has exercised all 

judicial appeal rights.

(iii) The taxpayer has entered into an installment 

agreement pursuant to I.R.C. § 6159. The 

taxpayer is making timely payments and is in 

full compliance with the agreement terms. The 

taxpayer is not delinquent because the 

taxpayer is not currently required to make full 

payment.

(iv) The taxpayer has filed for bankruptcy 

protection. The taxpayer is not delinquent 

because enforced collection action is stayed 

under 11 U.S.C. § 362 (the Bankruptcy Code).

(ii) The offeror ___ has ___ has not, within a three-year period 

preceding this offer, had one or more contracts terminated for 

default by any federal agency.

(2) "Principal," for the purposes of this certification, means an officer; director; 

owner; partner or a person having primary management or supervisory 

responsibilities within a business entity (e.g., general manager; plant 

manager; head of a 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 18 U.S.C. 

§ 1001.

(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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

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 this 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 will 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 is later determined 

that the offeror knowingly rendered an erroneous certification, in addition to other 

remedies available to the judiciary, the contracting officer may terminate the 

contract resulting from this solicitation for default.

(end)

Clause 3-25, Protecting the Judiciary’s Interest When Subcontracting with 

Contractors Debarred, Suspended, or Proposed for Debarment

Include the following clause as prescribed in § 330.10.30(d) (Provisions and Clauses).

Protecting the Judiciary’s Interest When Subcontracting with 

Contractors Debarred, Suspended, or Proposed for Debarment (MAR 

2019)

(a) The government (including the judiciary) suspends or debars contractors to 

protect the government’s interests. The contractor shall not enter into any 

subcontract in excess of $35,000 with a contractor that is debarred, suspended, 

or proposed for debarment unless there is a compelling reason to do so.

(b) The contractor shall require each proposed first-tier subcontractor, whose 

subcontract will exceed $35,000, to disclose to the contractor, in writing, whether 

as of the time of award of the subcontract, the subcontractor, or its principals, is 

or is not debarred, suspended, or proposed for debarment by the federal 

government.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

(c) A corporate officer or a designee of the contractor shall notify the contracting 

officer, in writing, before entering into a subcontract with a party that is debarred, 

suspended, or proposed for debarment. The notice shall include the following:

(1) the name of the subcontractor;

(2) the contractor's knowledge of the reasons for the subcontractor being on 

the List of Parties Excluded from Federal Procurement and 

Nonprocurement Programs;

(3) the compelling reason(s) for doing business with the subcontractor 

notwithstanding its inclusion on the List of Parties Excluded From Federal 

Procurement and Nonprocurement Programs; and

(4) the systems and procedures the contractor has established to ensure that 

it is fully protecting the judiciary’s interests when dealing with such 

subcontractor in view of the specific basis for the party's debarment, 

suspension, or proposed debarment.

(d) Subcontracts. Unless this is a contract for commercial items, the contractor shall 

include the requirements of this clause, including this paragraph (d) 

(appropriately modified for the identification of the parties), in each subcontract 

that exceeds $35,000 in value, and is not a subcontract for commercially 

available off-the-shelf items.

(end)

Provision 3-30, Certificate of Independent Price Determination

Include the following provision as prescribed in § 330.10.30(e) (Provisions and 

Clauses).

Certificate of Independent Price Determination (JAN 2003)

(a) The offeror certifies that:

(1) the prices in this offer have been arrived at independently, without, for the 

purpose of restricting competition, any consultation, communication, or 

agreement, with any other offeror or with any competitor relating to:

(A) those prices;

(B) the intention to submit an offer; or

(C) the methods or factors used to calculate the prices offered.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

(2) The prices in this offer have not been and will not be knowingly disclosed 

by the offeror, directly or indirectly, to any other offeror or contract award 

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 in this offer, and that the signatory has not participated, and will not 

participate, in any action contrary to paragraphs (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 paragraphs (a)(1) 

through (a)(3) of this provision ________________________ 

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

responsible for determining the prices in this offer, 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 paragraphs (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 paragraphs (a)(1) through 

(a)(3) of this provision.

(c) If the offeror deletes or modifies paragraph (a)(2) of this provision, the offeror 

shall furnish with its offer a signed statement setting forth in detail the 

circumstances of the disclosure.

(end)

Clause 3-35, Covenant Against Contingent Fees

Include the following clause as prescribed in § 330.10.30(f) (Provisions and Clauses).

Covenant Against Contingent Fees (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

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

to solicit or obtain this 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 judiciary will have the right to annul or terminate this 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) Definitions

"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 

judiciary contracts nor holds itself out as being able to obtain any judiciary 

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 judiciary contracts nor holds out as being 

able to obtain any judiciary 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 judiciary contract.

"Improper influence," as used in this clause, means any influence that induces or 

tends to induce a judiciary employee or officer to give consideration or to act 

regarding a judiciary contract on any basis other than the merits of the matter.

(end)

Clause 3-40, Restrictions on Subcontractor Sales to the Judiciary

Include the following clause as prescribed in § 330.10.30(g) (Provisions and Clauses).

Restrictions on Subcontractor Sales to the Judiciary (JUN 2014)

(a) Except as provided in (b) of this clause, the contractor shall not enter into any 

agreement with an actual or prospective subcontractor, nor otherwise act in any 

manner, which has or may have the effect of restricting sales by such 

subcontractors directly to the judiciary of any item or process (including computer 

software) made or furnished by the subcontractor under this contract or under 

any follow-on production contract.

(b) The prohibition in (a) of this clause does not preclude the contractor from 

asserting rights that are otherwise authorized by law or regulation.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

(c) The contractor agrees to incorporate the substance of this clause, including this 

paragraph (c), in all subcontracts under this contract which exceed the judiciary’s 

small purchase threshold.

(end)

Clause 3-45, Anti-Kickback Procedures

Include the following clause as prescribed in § 330.10.30(h) (Provisions and Clauses).

Anti-Kickback Procedures (JUN 2012)

(a) Definitions

"Kickback," as used in this clause, means any money, fee, commission, credit, 

gift, 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 obtaining 

or rewarding favorable treatment in connection with a prime contract or in 

connection with a subcontract 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 products, 

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 

products, 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 products, 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 products 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.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(b) The Anti-Kickback Act of 1986 (41 U.S.C. §§ 8701-8707) (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 possible violation. Such 

reports shall be made to the inspector general of the contracting office, the 

head of the contracting office if it does not have an 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 subdivision (c)(4)(ii) of this 

clause be paid over to the government unless the government has already 

offset those monies under subdivision (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 paragraph (c)(5) but excepting paragraph (c)(1), in all 

subcontracts under this contract which exceed the judiciary’s small 

purchase threshold.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

Clause 3-50, Cancellation, Rescission, and Recovery of Funds for Illegal or 

Improper Activity

Include the following clause as prescribed in § 330.10.30(i) (Provisions and Clauses).

Cancellation, Rescission, and Recovery of Funds for Illegal or 

Improper Activity (JUN 2012)

(a) If the judiciary 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. §§ 2101-2107) (the Act), 

as amended by section 4304 of the National Defense Authorization Act for Fiscal 

Year 1996 (Pub. L. 104-106), the judiciary 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 judiciary 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 subsection 27(e)(1) of the Act.

(b) If the judiciary rescinds the contract under paragraph (a) of this clause, the 

judiciary 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 judiciary specified herein are not exclusive, and 

are in addition to any other rights and remedies provided by law, regulation, or 

under this contract.

(end)

Clause 3-55, Price or Fee Adjustment for Illegal or Improper Activity

Include the following clause as prescribed in § 330.10.30(j) (Provisions and Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

Price or Fee Adjustment for Illegal or Improper Activity (JUN 2012)

(a) The judiciary, 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. §§ 2101-2107).

(b) The price or fee reduction referred to in paragraph (a) of this clause will 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 judiciary 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 will 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 will be the 

total final contract price.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

(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 judiciary 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 judiciary 

may terminate this contract for default. The rights and remedies of the judiciary 

specified herein are not exclusive, and are in addition to any other rights and 

remedies provided by law or under this contract.

(end)

Provision 3-70, Determination of Responsibility

Include the following provision as prescribed in § 330.10.30(k) (Provisions and 

Clauses).

Determination of Responsibility (JAN 2003)

A determination of responsibility will be made on the apparent successful 

offeror prior to contract award. If the prospective contractor is found nonresponsible, that offeror will be rejected and will receive no further 

consideration for award. In the event a contractor is rejected based on a 

determination of non-responsibility, a determination will be made on the 

next apparent successful offeror.

(end)

Provision 3-85, Explanation to Prospective Offerors

Include the following provision as prescribed in § 330.10.30(m) (Provisions and 

Clauses).

Explanation to Prospective Offerors (AUG 2004)

Any prospective offeror desiring an explanation or interpretation of the 

solicitation, drawings, specifications, etc. shall submit such questions in 

writing only to the contracting officer soon enough to allow a reply to reach 

all prospective offerors before the submission of their offers. Oral 

explanations or instructions given before the award of the contract will not 

be binding. Any information given by the contracting officer to a 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

prospective offeror concerning a solicitation will be furnished promptly to 

all other prospective offerors as an amendment to the solicitation, if that 

information is deemed by the contracting officer to be necessary in 

submitting offers or if, in the judgment of the contracting officer, the lack of 

it would be prejudicial to any other prospective offerors. The offeror is 

instructed specifically to contact only the contracting officer in connection 

with any aspect of this procurement prior to contract award. Contact with 

any other judiciary official except the contracting officer, or without the 

contracting officer’s express consent, concerning this solicitation may 

result in disqualification of the offeror from consideration for award.

(end)

Provision 3-95, Preparation of Offers

Include the following provision as prescribed in § 330.10.30(n) (Provisions and 

Clauses).

Preparation of Offers (APR 2013)

(a) Offerors are expected to examine the drawings, specifications, clauses, line 

items, attachments, and all provisions and instructions. Failure to do so will be at 

the offeror's risk.

(b) Each offeror shall furnish the information required by the solicitation. The offeror 

shall sign the offer and print or type its name on the offer and each continuation 

sheet on which it makes an entry. Erasures or other changes shall be initialed by 

the person signing the offer. Offers signed by an agent shall be accompanied by 

evidence of that agent’s authority, unless that evidence has been previous 

furnished to the purchasing office.

(c) For each item in the offer, the offeror shall:

(1) show the unit price/cost, including, unless otherwise specified, packaging, 

packing, and preservation; and

(2) enter the extended price/cost for the quantity of each item offered in the 

“amount” column of the line item schedule.

In case of discrepancy between a unit price/cost and an extended 

price/cost, the unit price/cost will be presumed to be correct, 

subject, however, to correction to the same extent and in the same 

manner as any other mistake.

(d) Offers for products or services other than those specified will not be considered 

unless authorized by the solicitation.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

(e) Offerors shall state a definite time for delivery of products or for performance of 

services, unless otherwise specified in the solicitation.

(f) Time, if stated as a number of days, will include Saturdays, Sundays, and federal 

holidays.

(end)

Provision 3-100, Instructions to Offerors

Include the following provision as prescribed in § 330.10.30(o) (Provisions and 

Clauses).

Instructions to Offerors (APR 2013)

(a) Definitions. As used in this provision:

"Discussions" are negotiations that occur after establishment of the competitive 

range that may, at the contracting officer's discretion, result in the offeror being 

allowed to revise its offer.

“In writing," "writing," or "written" means any worded or numbered expression that 

can be read, reproduced, and later communicated, and includes electronically 

transmitted and stored information.

"Offer modification" is a change made to an offer before the solicitation's closing 

date and time, or made in response to an amendment, or made to correct a 

mistake at any time before award.

"Offer revision" is a change to an offer made after the solicitation closing date, at 

the request of or as allowed by a contracting officer as the result of negotiations.

"Time," if stated as a number of days, is calculated using calendar days, unless 

otherwise specified, and will include Saturdays, Sundays, and legal holidays. 

However, if the last day falls on a Saturday, Sunday, or legal holiday, then the 

period will include the next working day.

(b) Amendments to Solicitations

If this solicitation is amended, all terms and conditions that are not amended 

remain unchanged. Offerors shall acknowledge receipt of any amendment to this 

solicitation by the date and time specified in the amendment(s). An offeror’s 

failure to acknowledge amendments affecting price, quantity, quality or delivery 

may result in the offeror’s proposal being determined unacceptable where award 

is made without discussions.

(c) Submission, Modification, Revision, and Withdrawal of Offers
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(1) Unless some other method (e.g., facsimile) is permitted in the solicitation, 

offers and modifications to offers shall be submitted in paper media in 

sealed envelopes or packages (i) addressed to the office specified in the 

solicitation, and (ii) showing the time and date specified for receipt, the 

solicitation number, and the name and address of the offeror. Offerors 

using commercial carriers shall ensure that the offer is marked on the 

outermost wrapper with the information in paragraphs (c)(1)(i) and (c)(1)(ii) 

of this provision.

(2) The first page of the offer shall show:

(i) the solicitation number;

(ii) the name, address, and telephone and facsimile numbers of the 

offeror (and email address if available);

(iii) a statement specifying the extent of agreement with all terms, 

conditions, and provisions included in the solicitation and 

agreement to furnish any or all items upon which prices are offered 

at the price set opposite each item;

(iv) names, titles, and telephone and facsimile numbers (and email 

addresses if available) of persons authorized to negotiate on the 

offeror's behalf with the judiciary in connection with this solicitation; 

and

(v) name, title, and signature of person authorized to sign the offer. 

Offers signed by an agent shall be accompanied by evidence of 

that agent's authority, unless that evidence has been previously 

furnished to the issuing office.

(3) Submission, Modification, Revision, and Withdrawal of Offers

(i) Offerors are responsible for submitting offers, and any 

modifications or revisions, so as to reach the judiciary office 

designated in the solicitation by the time specified in the solicitation. 

If no time is specified in the solicitation, the time for receipt is 4:30 

p.m., local time, for the designated judiciary office on the date that 

offer or revision is due.

(ii) Any offer, modification, or revision received at the judiciary office 

designated in the solicitation after the exact time specified for 

receipt of offers is "late" and will not be considered unless it is 

received before award is made, the contracting officer determines it 

is in the judiciary’s best interest, the contracting officer determines 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

that accepting the late offer would not unduly delay the 

procurement, and:

(A) there is acceptable evidence to establish that it was received 

at the judiciary office designated for receipt of offers prior to 

the time set for receipt; or

(B) it is the only offer received.

However, a late modification of an otherwise successful offer that 

makes its terms more favorable to the judiciary, will be considered 

at any time it is received and may be accepted.

(iii) Acceptable evidence to establish the time of receipt at the judiciary 

office includes the time/date stamp of that office on the offer 

wrapper, other documentary evidence of receipt maintained by the 

office, or oral testimony or statements of judiciary personnel.

(iv) If an emergency or unanticipated event interrupts normal judiciary 

processes so that offers cannot be received at the office designated 

for receipt of offers by the exact time specified in the solicitation, 

and urgent judiciary requirements preclude amendment of the 

solicitation, the time specified for receipt of offers will be deemed to 

be extended to the same time of day specified in the solicitation on 

the first work day on which normal judiciary processes resume.

(v) Offers may be withdrawn by written notice received at any time 

before award. Oral offers in response to oral solicitations may be 

withdrawn orally. If the solicitation authorizes facsimile offers, 

offers may be withdrawn via facsimile received at any time before 

award, subject to the conditions specified in the Provision 3-115, 

“Facsimile Offers.” Offers may be withdrawn in person by an 

offeror or an authorized representative, if the identity of the person 

requesting withdrawal is established and the person signs a receipt 

for the offer before award.

(4) Unless otherwise specified in the solicitation, offers on less than all items 

solicited will not be considered.

(5) Offerors shall submit offers in response to this solicitation in English and in 

U.S. dollars.

(6) Offerors may submit modifications to their offers at any time before the 

solicitation closing date and time, and may submit modifications in 

response to an amendment, or to correct a mistake at any time before 

award.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

(7) Offerors may submit revised offers only if requested or allowed by the 

contracting officer.

(8) Offers may be withdrawn at any time before award. Withdrawals are 

effective upon receipt of notice by the contracting officer.

(d) Offer Expiration Date

Offers in response to this solicitation will be valid for the number of days specified 

on the solicitation cover sheet (unless a different period is proposed by the 

offeror).

(e) Restriction on Disclosure and Use of Data

Offerors that include in their offers data that they do not want disclosed to the 

public for any purpose, or used by the judiciary except for evaluation purposes, 

shall:

(1) mark the title page with the following legend:

This offer includes data that shall not be disclosed outside the judiciary 

and shall not be duplicated, used, or disclosed — in whole or in part — for 

any purpose other than to evaluate this offer. If, however, a contract is 

awarded to this offeror as a result of — or in connection with — the 

submission of this data, the judiciary shall have the right to duplicate, use, 

or disclose the data to the extent provided in the resulting contract. This 

restriction does not limit the judiciary's right to use information contained in 

this data if it is obtained from another source without restriction. The data 

subject to this restriction are contained in sheets [insert numbers or other 

identification of sheets]; and

(2) mark each sheet of data it wishes to restrict with the following legend:

Use or disclosure of data contained on this sheet is subject to the 

restriction on the title page of this offer.

(f) Contract Award

(1) The judiciary intends to award a contract or contracts resulting from this 

solicitation to the responsible offeror(s) whose offer(s) represents the best 

value after evaluation in accordance with the factors and subfactors in the 

solicitation.

(2) The judiciary may reject any or all offers if such action is in the judiciary's 

interest.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(3) The judiciary may waive informalities and minor irregularities in offers 

received.

(4) The judiciary intends to evaluate offers and award a contract without 

discussions with offerors (except clarifications). Therefore, the offeror's 

initial offer shall contain the offeror's best terms from a cost or price and 

technical standpoint. The judiciary reserves the right to conduct 

discussions if the contracting officer later determines them to be 

necessary. If the contracting officer determines that the number of offers 

that would otherwise be in the competitive range exceeds the number at 

which an efficient competition can be conducted, the contracting officer 

may limit the number of offers in the competitive range to the greatest 

number that will permit an efficient competition among the most highly 

rated offers.

(5) The judiciary reserves the right to make an award on any item for a 

quantity less than the quantity offered, at the unit cost or prices offered, 

unless the offeror specifies otherwise in the offer.

(6) The judiciary reserves the right to make multiple awards if, after 

considering the additional administrative costs, it is in the judiciary's best 

interest to do so.

(7) Exchanges with offerors after receipt of an offer do not constitute a 

rejection or counteroffer by the judiciary.

(8) The judiciary may determine that an offer is unacceptable if the prices 

proposed are materially unbalanced between line items or sub-line items. 

Unbalanced pricing exists when, despite an acceptable total evaluated 

price, the price of one or more contract line items is significantly 

overstated or understated as indicated by the application of cost or price 

analysis techniques. An offer may be rejected if the contracting officer 

determines that the lack of balance poses an unacceptable risk to the 

judiciary.

(9) If a cost realism analysis is performed, cost realism may be considered by 

the source selection authority in evaluating performance or schedule risk.

(10) A written award or acceptance of offer mailed or otherwise furnished to the 

successful offeror within the time specified in the offer shall result in a 

binding contract without further action by either party.

(11) The judiciary may disclose the following information in postaward 

debriefings to other offerors:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

(i) the overall evaluated cost or price, and technical rating of the 

successful offeror;

(ii) the overall ranking of all offerors, when any ranking was developed 

by the judiciary during source selection;

(iii) a summary of the rationale for award; and

(iv) for procurements of commercial items, the make and model of the 

item to be delivered by the successful offeror.

(end)

Alternate I (JAN 2003): As prescribed in § 330.10.30(o)(1) (Provisions 

and Clauses), substitute the following paragraph for paragraph (f)(4) of the 

basic provision if the judiciary intends to make award after discussions 

with offerors within the competitive range.

(f)(4) The judiciary intends to evaluate offers and award a contract after conducting 

discussions with offerors whose offers have been determined to be within the 

competitive range. If the contracting officer determines that the number of offers 

that would otherwise be in the competitive range exceeds the number at which 

an efficient competition can be conducted, the contracting officer may limit the 

number of offers in the competitive range to the greatest number that will permit 

an efficient competition among the most highly rated offers. Therefore, the 

offeror's initial offer shall contain the offeror's best terms from a price and 

technical standpoint.

Alternate II (JAN 2003): As prescribed in § 330.10.30(o)(2) (Provisions and 

Clauses), add paragraph (c)(9) to the basic clause, if the judiciary would be 

willing to accept alternate offers.

(c)(9) Offerors may submit offers that depart from stated requirements. Such offers 

shall clearly identify why the acceptance of the offer would be advantageous to 

the judiciary. Any deviations from the terms and conditions of the solicitation, as 

well as the comparative advantage to the judiciary, shall be clearly identified and 

explicitly defined. The judiciary reserves the right to amend the solicitation to 

allow all offerors an opportunity to submit revised offers based on the revised 

requirements.

Alternate III (SEP 2010): As prescribed in § 330.10.30(o)(3) (Provisions and 

Clauses), replace paragraph (c)(4) of the basic clause with the following, if the 

judiciary will consider offers that do not include all items solicited.

(c)(4) Unless otherwise specified in the solicitation, the offeror may propose to provide 

any item or combination of items.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

Clause 3-105, Audit and Records

Include the following clause as prescribed in § 330.10.30(p) (Provisions and Clauses).

Audit and Records (APR 2011)

(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) Examination of Costs

If this is a cost-reimbursement, incentive, time-and-materials, labor-hour, or price 

re-determinable contract, or any combination of these, the contractor shall 

maintain and the contracting officer, or an authorized representative of the 

contracting officer, will have the right to examine and audit all records and other 

evidence sufficient to reflect properly all costs claimed to have been incurred or 

anticipated to be incurred directly or indirectly in performance of this contract. 

This right of examination will include inspection at all reasonable times of the 

contractor's plants, or parts of them, engaged in performing the contract.

(c) Detailed Cost Information

If the contractor has been required to submit detailed cost information in 

connection with any pricing action relating to this contract, the contracting officer, 

or an authorized representative of the contracting officer, will have the right to 

examine and audit all of the contractor's records, including computations and 

projections, related to:

(1) the offer for the contract, subcontract, or modification;

(2) the discussions conducted on the offer(s), including those related to 

negotiating;

(3) pricing of the contract, subcontract, or modification; or

(4) performance of the contract, subcontract or modification.

(d) Comptroller General

(1) The Comptroller General of the United States, or an authorized 

representative, will have access to and the right to examine any of the 

contractor's directly pertinent records involving transactions related to this 

contract or a subcontract hereunder.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

(2) This paragraph may not be construed to require the contractor or 

subcontractor to create or maintain any record that the contractor or 

subcontractor does not maintain in the ordinary course of business or 

pursuant to a provision of law.

(e) Reports

If the contractor is required to furnish cost, funding, or performance reports, the 

contracting officer or an authorized representative of the contracting officer will 

have the right to examine and audit the supporting records and 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.

(f) Availability

The contractor shall make available at its office at all reasonable times the 

records, materials, and other evidence described in paragraphs (a), (b), (c), (d), 

and (e) of this clause, for examination, audit, or reproduction, until 3 years after 

final payment under this contract, or for any shorter or longer period required by 

statute or by other clauses of this contract. In addition:

(1) if this contract is completely or partially terminated, the contractor shall 

make available the records relating to the work terminated until 3 years 

after any resulting final termination settlement; and

(2) the contractor shall make available records relating to appeals under the 

Disputes clause or to litigation or the settlement of claims arising under or 

relating to this contract until such appeals, litigation, or claims are finally 

resolved.

(g) The contractor shall insert a clause containing all the terms of this clause, 

including this paragraph (g), in all subcontracts under this contract that exceed 

the judiciary’s small purchase threshold, and:

(1) that are cost-reimbursement, incentive, time-and-materials, labor-hour, or 

price re-determinable type or any combination of these;

(2) for which detailed cost information is required; or

(3) that require the subcontractor to furnish reports as discussed in paragraph 

(e) of this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

The clause may be altered only as necessary to identify properly the contracting 

parties and the contracting officer under the judiciary prime contract.

(end)

Provision 3-115, Facsimile Offers

Include the following provision as prescribed in § 330.10.30(q) (Provisions and 

Clauses).

Facsimile Offers (JAN 2003)

(a) Definition

"Facsimile offer," as used in this provision, means an offer, revision or 

modification of an offer, or withdrawal of an offer that is transmitted to and 

received by the judiciary via facsimile machine.

(b) Offerors may submit facsimile offers as responses to this solicitation. Facsimile 

offers are subject to the same rules as paper offers.

(c) The telephone number of receiving facsimile equipment is: [insert telephone 

number].

(d) If any portion of a facsimile offer received by the contracting officer is unreadable 

to the degree that conformance to the essential requirements of the solicitation 

cannot be ascertained from the document:

(1) the contracting officer immediately will notify the offeror and permit the 

offeror to resubmit the offer;

(2) the method and time for re-submission will be prescribed by the 

contracting officer after consultation with the offeror; and

(3) the re-submission will be considered as if it were received at the date and 

time of the original unreadable submission for the purpose of determining 

timeliness, provided the offeror complies with the time and format

requirements for re-submission prescribed by the contracting officer.

(e) The judiciary reserves the right to make award solely on the facsimile offer. 

However, if requested to do so by the contracting officer, the apparently 

successful offeror promptly shall submit the complete original signed offer.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

Clause 3-120, Order of Precedence

Include the following clause as prescribed in § 330.10.30(r) (Provisions and Clauses).

Order of Precedence (JAN 2003)

Any inconsistency in this solicitation or contract shall be resolved by giving 

precedence in the following order:

(1) the schedule (excluding the specifications);

(2) representations and other instructions;

(3) the solicitation/contract provisions and clauses;

(4) other documents, exhibits, and attachments;

(5) the specifications.

(end)

Provision 3-130, Authorized Negotiators

Include the following provision as prescribed in § 330.10.30(s) (Provisions and 

Clauses).

Authorized Negotiators (JAN 2003)

The offeror represents that the following persons are authorized to 

negotiate on its behalf with the judiciary in connection with this solicitation 

(offeror lists names, titles, and telephone numbers of the authorized 

negotiators).

Name: ________________

Titles: ______________

Telephone: ________________

Fax: ________________

E-mail: ________________

(end)

Provision 3-135, Single or Multiple Awards

Include the following provision as prescribed in § 330.10.30(t) (Provisions and Clauses).

Single or Multiple Awards (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

The judiciary may elect to award a single contract or to award multiple 

contracts for the same or similar products or services to two or more 

sources under this solicitation.

(end)

Clause 3-140, Notice to the Judiciary of Labor Disputes

Include the following clause as prescribed in Section § 330.10.30(u) (Provisions and 

Clauses).

Notice to the Judiciary of Labor Disputes (JAN 2003)

If the contractor has knowledge that any actual or potential labor dispute is 

delaying or threatens to delay the timely performance of this contract, the 

contractor shall immediately give notice, including all relevant information, 

to the contracting officer.

(end)

Clause 3-145, Payment for Overtime Premiums

Include the following clause as prescribed in § 330.10.30(v) (Provisions and Clauses).

Payment for Overtime Premiums (JAN 2003)

(a) The use of overtime is authorized under this contract if the overtime premium 

does not exceed *_____ or the overtime premium is paid for work:

(1) necessary to cope with emergencies such as those resulting from 

accidents, natural disasters, breakdowns of production equipment, or 

occasional production bottlenecks of a sporadic nature;

(2) by indirect-labor employees such as those performing duties in connection 

with administration, protection, transportation, maintenance, standby plant 

protection, operation of utilities, or accounting;

(3) to perform tests, industrial processes, laboratory procedures, loading or 

unloading of transportation conveyances, and operations in flight or afloat 

that are continuous in nature and cannot reasonably be interrupted or 

completed otherwise; or

(4) that will result in lower overall costs to the judiciary.

(b) Any requests for estimated overtime premiums that exceed the amount specified 

above shall include all estimated overtime for contract completion and shall:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

(1) identify the work unit; e.g., department or section in which the requested 

overtime will be used, together with present workload, staffing, and other 

data of the affected unit sufficient to permit the contracting officer to 

evaluate the necessity for the overtime;

(2) demonstrate the effect that denial of the request will have on the contract 

delivery or performance schedule;

(3) identify the extent to which approval of overtime would affect the 

performance or payments in connection with other judiciary contracts, 

together with identification of each affected contract; and

(4) provide reasons why the required work cannot be performed by using 

multishift operations or by employing additional personnel.

* Insert either "zero" or the dollar amount agreed to during negotiations. 

The inserted figure does not apply to the exceptions in paragraph (a)(1) 

through (a)(4) of the clause.

(end)

Clause 3-150, Contract Work Hours and Safety Standards Act – Overtime 

Compensation

Include the following clause as prescribed in § 330.10.30(w) (Provisions and Clauses).

Contract Work Hours and Safety Standards Act – Overtime 

Compensation (JAN 2003)

(a) Overtime Requirements

No contractor or subcontractor employing laborers or mechanics will require or 

permit them to work over 40 hours in any workweek unless they are paid at least 

1 and 1⁄2 times the basic rate of pay for each hour worked over 40 hours.

(b) Violation; Liability for Unpaid Wages; Liquidated Damages

The responsible contractor and subcontractor are liable for unpaid wages if they 

violate the terms in paragraph (a) of this clause. In addition, the contractor and 

subcontractor are liable for liquidated damages payable to the judiciary. The 

contracting officer will assess liquidated damages at the rate of $10 per affected 

employee for each calendar day on which the employer required or permitted the 

employee to work in excess of the standard workweek of 40 hours without paying 

overtime wages required by the Contract Work Hours and Safety Standards Act.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

(c) Withholding for Unpaid Wages and Liquidated Damages

The contracting officer will withhold from payments due under the contract 

sufficient funds required to satisfy any contractor or subcontractor liabilities for 

unpaid wages and liquidated damages. If amounts withheld under the contract 

are insufficient to satisfy contractor or subcontractor liabilities, the contracting 

officer will withhold payments from other federal or federally assisted contracts 

held by the same contractor that are subject to the Contract Work Hours and 

Safety Standards Act.

(d) Payrolls and Basic Records

(1) The contractor and its subcontractors shall maintain payrolls and basic 

payroll records for all laborers and mechanics working on the contract 

during the contract and shall make them available to the judiciary until 3 

years after contract completion. The records shall contain the name and 

address of each employee, social security number, labor classifications, 

hourly rates of wages paid, daily and weekly number of hours worked, 

deductions made, and actual wages paid. The records need not duplicate 

those required for construction work by Department of Labor regulations at 

29 CFR 5.5(a)(3) implementing the Davis-Bacon Act.

(2) The contractor and its subcontractors shall allow authorized 

representatives of the contracting officer or the Department of Labor to 

inspect, copy, or transcribe records maintained under paragraph (d)(1) of 

this clause. The contractor or subcontractor also shall allow authorized 

representatives of the contracting officer or Department of Labor to 

interview employees in the workplace during working hours.

(e) Subcontracts

The contractor shall insert the provisions set forth in paragraphs (a) through (d) 

of this clause in subcontracts exceeding the judiciary’s small purchase threshold 

and require subcontractors to include these provisions in any lower tier 

subcontracts. The contractor shall be responsible for compliance by any 

subcontractor with the provisions set forth in paragraphs (a) through (d) of this 

clause.

(end)

Clause 3-155, Walsh-Healey Public Contracts Act

Include the following clause as prescribed in § 330.10.30(x) (Provisions and Clauses).

Walsh-Healey Public Contracts Act (JUN 2012)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

If this contract is for the manufacture or furnishing of materials, products, 

articles or equipment in an amount that exceeds or may exceed $15,000, 

and is subject to the Walsh-Healey Public Contracts Act, as amended 

(41 U.S.C. § 6501 et seq.), the following terms and conditions apply:

(1) 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;

(2) 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 14 CFR 50-202.3) to the same extent that such 

employment is permitted under Section 14 of the Fair Labor Standards Act 

(29 U.S.C. § 201 et seq.).

(end)

Clause 3-160, Service Contract Labor Standards

Include the following clause as prescribed in § 332.50(a) (Required Clauses and 

Provisions), § 332.30(b) (Exemptions), and § 332.40.20(b) (Incorporation of Wage 

Determinations).

Service Contract Labor Standards (MAR 2019)

(a) Definitions

“Contractor”, when this clause is used in any subcontract, shall be deemed to 

refer to the subcontractor, except in the term “government prime contractor.”

“Service Employee” means any person engaged in the performance of this 

contract other than any person employed in a bona fide executive, administrative, 

or professional capacity, or as computer systems analysts, computer 

programmers, software engineers, or other similarly skilled computer employees, 

as these terms are defined in 29 CFR part 541, as revised. It includes all such 

persons regardless of any contractual relationship that may be alleged to exist 

between a contractor or subcontractor and such persons.

(b) Applicability

This contract is subject to the following provisions and to all other applicable 

provisions of the Act and regulations of the Secretary of Labor (29 CFR part 4). 

This clause does not apply to contracts or subcontracts administratively 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-35

exempted by the Secretary of Labor or exempted by 41 U.S.C. § 6702, as 

interpreted in Subpart C of 29 CFR part 4.

(c) Compensation

(1) Each service employee employed in the performance of this contract by 

the contractor or any subcontractor shall be paid not less than the 

minimum monetary wages and shall be furnished fringe benefits in 

accordance with the wages and fringe benefits determined by the 

Secretary of Labor or an authorized representative, as specified in any 

wage determination attached to this contract.

(2) (i) If a wage determination is attached to this contract, the contractor 

shall classify any class of service employee which is not listed 

therein and which is to be employed under the contract (i.e., the 

work to be performed is not performed by any classification listed in 

the wage determination) so as to provide a reasonable relationship 

(i.e., appropriate level of skill comparison) between such unlisted 

classifications and the classifications listed in the wage 

determination. Such conformed class of employees shall be paid 

the monetary wages and furnished the fringe benefits as are 

determined pursuant to the procedures in this paragraph (c).

(ii) This conforming procedure shall be initiated by the contractor prior 

to the performance of contract work by the unlisted class of 

employee. The contractor shall submit Standard Form (SF) 1444, 

Request for Authorization of Additional Classification and Rate, to 

the contracting officer no later than 30 days after the unlisted class 

of employees performs any contract work. The contracting officer 

will review the proposed classification and rate and promptly submit 

the completed SF 1444 (which must include information regarding 

the agreement or disagreement of the employees’ authorized 

representatives or the employees themselves together with the 

contracting officer's recommendation) and all pertinent information, 

to the Wage and Hour Division, Employment Standards 

Administration, U.S. Department of Labor. The Wage and Hour 

Division will approve, modify, or disapprove the action or render a 

final determination in the event of disagreement within 30 days of 

receipt or will notify the contracting officer within 30 days of receipt 

that additional time is necessary.

(iii) The final determination of the conformance action by the Wage and 

Hour Division will be transmitted to the contracting officer, who will 

promptly notify the contractor of the action taken. Each affected 

employee shall be furnished by the contractor with a written copy of 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-36

such determination, or it shall be posted as a part of the wage 

determination.

(iv) (A) The process of establishing wage and fringe benefit rates 

that bear a reasonable relationship to those listed in a wage 

determination cannot be reduced to any single formula. The 

approach used may vary from wage determination to wage 

determination depending on the circumstances. Standard 

wage and salary administration practices which rank various 

job classifications by pay grade pursuant to point schemes 

or other job factors may, for example, be relied upon. 

Guidance may also be obtained from the way different jobs 

are rated under federal pay systems (Federal Wage Board 

Pay System and the General Schedule) or from other wage 

determinations issued in the same locality. Basic to the 

establishment of conformable wage rate(s) is the concept 

that a pay relationship should be maintained between job 

classifications based on the skill required and the duties 

performed.

(B) In the case of a contract modification, an exercise of an 

option, or extension of an existing contract, or in any other 

case where a contractor succeeds a contract under which 

the classification in question was previously conformed 

pursuant to paragraph (c) of this clause, a new conformed 

wage rate and fringe benefits may be assigned to the 

conformed classification by indexing (i.e., adjusting) the 

previous conformed rate and fringe benefits by an amount 

equal to the average (mean) percentage increase (or 

decrease, where appropriate) between the wages and fringe 

benefits specified for all classifications to be used on the 

contract that are listed in the current wage determination, 

and those specified for the corresponding classifications in 

the previously applicable wage determination. Where 

conforming actions are accomplished in accordance with this 

paragraph prior to the performance of contract work by the 

unlisted class of employees, the contractor shall advise the 

contracting officer of the action taken, but the other 

procedures in subdivision (c)(2)(ii) of this clause need not be 

followed.

(C) No employee engaged in performing work on this contract 

shall in any event be paid less than the currently applicable 

minimum wage specified under section 6(a)(1) of the Fair 

Labor Standards Act of 1938, as amended.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-37

(v) The wage rate and fringe benefits finally determined under this 

paragraph (c)(2) of this clause shall be paid to all employees 

performing in the classification from the first day on which contract 

work is performed by them in the classification. Failure to pay the 

unlisted employees the compensation agreed upon by the 

interested parties and/or finally determined by the Wage and Hour 

Division retroactive to the date such class of employees 

commenced contract work shall be a violation of the Act and this 

contract.

(vi) Upon discovery of failure to comply with paragraph (c)(2) of this 

clause, the Wage and Hour Division will make a final determination 

of conformed classification, wage rate, and/or fringe benefits which 

will be retroactive to the date the class of employees commenced 

contract work.

(3) Adjustment of Compensation

If the term of this contract is more than 1 year, the minimum monetary 

wages and fringe benefits required to be paid or furnished thereunder to 

service employees under this contract shall be subject to adjustment after 

1 year and not less often than once every 2 years, under wage

determinations issued by the Wage and Hour Division.

(d) Obligation to Furnish Fringe Benefits

The contractor or subcontractor may discharge the obligation to furnish fringe 

benefits specified in the attachment or determined under paragraph (c)(2) of this

clause by furnishing equivalent combinations of bona fide fringe benefits, or by 

making equivalent or differential cash payments, only in accordance with 

Subpart D of 29 CFR part 4.

(e) Minimum Wage

In the absence of a minimum-wage attachment for this contract, neither the 

contractor nor any subcontractor under this contract shall pay any person 

performing work under this contract (regardless of whether the person is a 

service employee) less than the minimum wage specified by section 6(a)(1) of 

the Fair Labor Standards Act of 1938. Nothing in this clause will relieve the 

contractor or any subcontractor of any other obligation under law or contract for 

the payment of a higher wage to any employee.

(f) Successor Contracts

If this contract succeeds a contract subject to the Act under which substantially 

the same services were furnished in the same locality, and service employees 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-38

were paid wages and fringe benefits provided for in a collective bargaining 

agreement, in the absence of the minimum wage attachment for this contract 

setting forth such collectively bargained wage rates and fringe benefits, neither 

the contractor nor any subcontractor under this contract shall pay any service 

employee performing any of the contract work (regardless of whether or not the 

employee was employed under the predecessor contract), less than the wages 

and fringe benefits provided for in such collective bargaining agreement, to which 

such employee would have been entitled if employed under the predecessor 

contract, including accrued wages and fringe benefits and any prospective 

increases in wages and fringe benefits provided for under such agreement.

No contractor or subcontractor under this contract may be relieved of the 

foregoing obligation unless the limitations of 29 CFR 4.1b(b) apply or unless the 

Secretary of Labor or the Secretary’s authorized representative finds, after a 

hearing as provided in 29 CFR 4.10 that the wages and/or fringe benefits 

provided for in such agreement are substantially at variance with those which 

prevail for services of a character similar in the locality, or determines, as 

provided in section 29 CFR 4.11, that the collective bargaining agreement 

applicable to service employees employed under the predecessor contract was 

not entered into as a result of arm's-length negotiations. Where it is found in 

accordance with the review procedures in 29 CFR 4.10 and/or 4.11 and Parts 6 

and 8 that some or all of the wages and/or fringe benefits in a predecessor 

contractor's collective bargaining agreement are substantially at variance with 

those which prevail for services of a character similar in the locality, and/or that 

the collective bargaining agreement applicable to service employees under the 

predecessor contract was not entered into as a result of arm's-length 

negotiations, the Department will issue a new or revised wage determination 

setting forth the applicable wage rates and fringe benefits. Such determination 

shall be made part of the contract or subcontract, in accordance with the decision 

of the Administrator, the Administrative Law Judge, or the Administrative Review 

Board, as the case may be, irrespective of whether such issuance occurs prior to 

or after award of a contract or subcontract (53 Comp. Gen. 401 (1973)). In the 

case of a wage determination issued solely as a result of a finding of substantial 

variance, such determination shall be effective as of the date of the final 

administrative decision.

(g) Notification to Employees

The contractor and any subcontractor under this contract shall notify each 

service employee commencing work on this contract of the minimum monetary 

wage and any fringe benefits required to be paid pursuant to the contract, or shall 

post the wage determination attached to this contract. The poster provided by 

the Department of Labor (Publication WH 1313) shall be posted in a prominent 

and accessible place at the work site. Failure to comply with this requirement is 

a violation of section 2(a)(4) of the Act and of this contract.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-39

(h) Safe and Sanitary Working Conditions

The contractor or subcontractor shall not permit any part of the services called for 

by this contract to be performed in buildings or surroundings or under working 

conditions provided by or under the control or supervision of the contractor or 

subcontractor that are unsanitary, hazardous or dangerous to the health or safety 

of service employees. The contractor or subcontractor shall comply with the 

safety and health standards applied under 29 CFR part 1925.

(i) Records

(1) The contractor and each subcontractor performing work subject to the Act 

shall make and maintain for 3 years from the completion of the work, and 

make them available for inspection and transcription by authorized 

representatives of the Wage and Hour Division, Employment Standards 

Administration, a record of the following:

(i) for each employee subject to the Act:

(A) name, address, and social security number;

(B) correct work classification or classifications, rate or rates of 

monetary wages paid and fringe benefits provided, rate or 

rates of payments in lieu of fringe benefits, and total daily 

and weekly compensation;

(C) daily and weekly hours worked by each employee; and

(D) any deductions, rebates, or refunds from the total daily or 

weekly compensation of each employee.

(ii) For those classes of service employees not included in any wage 

determination attached to this contract, wage rates or fringe 

benefits determined by the interested parties or by the 

Administrator or authorized representative under the terms of 

paragraph (c) of this clause. A copy of the report required by 

subdivision (c)(2)(ii) of this clause will fulfill this requirement.

(iii) Any list of the predecessor contractor's employees which had been 

furnished to the contractor as prescribed by paragraph (n) of this 

clause.

(2) The contractor shall also make available a copy of this contract for 

inspection or transcription by authorized representatives of the Wage and 

Hour Division.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-40

(3) Failure to make and maintain or to make available these records for 

inspection and transcription shall be a violation of the regulations and this 

contract, and in the case of failure to produce these records, the 

contracting officer, upon direction of the Department of Labor and 

notification to the contractor, will take action to cause suspension of any 

further payment or advance of funds until the violation ceases.

(4) The contractor shall permit authorized representatives of the Wage and 

Hour Division to conduct interviews with employees at the work site during 

normal working hours.

(j) Pay Periods

The contractor shall unconditionally pay to each employee subject to the Act all 

wages due free and clear and without subsequent deduction (except as 

otherwise provided by law or regulations, 29 CFR part 4), rebate, or kickback on 

any account. These payments shall be made no later than one pay period 

following the end of the regular pay period in which the wages were earned or 

accrued. A pay period under this Act may not be of any duration longer than 

semi-monthly.

(k) Withholding of Payments and Termination of Contract

The contracting officer will withhold or cause to be withheld from the government 

prime contractor under this or any other government contract with the prime 

contractor such sums as an appropriate official of the Department of Labor 

requests or such sums as the contracting officer decides may be necessary to 

pay underpaid employees employed by the contractor or subcontractor. In the 

event of failure to pay employees subject to the Act all or part of the wages or 

fringe benefits due under the Act, the contracting officer may, after authorization 

or by direction of the Department of Labor and written notification to the 

contractor, take action to cause suspension of any further payment or advance of 

funds until such violations have ceased. Additionally, any failure to comply with 

the requirements of this clause may be grounds for termination of the right to 

proceed with the contract work. In such event, the government may enter into 

other contracts or arrangements for completion of the work, charging the 

contractor in default with any additional cost.

(l) Subcontracts

The contractor agrees to insert this clause in all subcontracts subject to the Act.

(m) Collective Bargaining Agreements Applicable to Service Employees

If wages to be paid or fringe benefits to be furnished any service employees 

employed by the government prime contractor or any subcontractor under the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-41

contract are provided for in a collective bargaining agreement which is or will be 

effective during any period in which the contract is being performed, the 

government prime contractor shall report such fact to the contracting officer, 

together with full information as to the application and accrual of such wages and 

fringe benefits, including any prospective increases, to service employees 

engaged in work on the contract, and a copy of the collective bargaining 

agreement. Such report shall be made upon commencing performance of the 

contract, in the case of collective bargaining agreements effective at such time, 

and in the case of such agreements or provisions or amendments thereof 

effective at a later time during the period of contract performance such 

agreements shall be reported promptly after negotiation thereof.

(n) Seniority List

Not less than ten days prior to completion of any contract being performed at a 

federal facility where service employees may be retained in the performance of 

the succeeding contract and subject to a wage determination which contains 

vacation or other benefit provisions based upon length of service with a 

contractor (predecessor) or successor (29 CFR 4.173), the incumbent prime 

contractor shall furnish the contracting officer a certified list of the names of all 

service employees on the contractor's or subcontractor's payroll during the last 

month of contract performance. Such list shall also contain anniversary dates of 

employment on the contract either with the current or predecessor contractors of 

each such service employee. The contracting officer will turn over such list to the 

successor contractor at the commencement of the succeeding contract.

(o) Rulings and Interpretations

Rulings and interpretations of the Act are contained in Regulations, 29 CFR 

part 4.

(p) (1) Contractor’s Certification

By entering into this contract, the contractor (and officials thereof) certifies 

that neither it (nor he or she) nor any person or firm who has a substantial 

interest in the contractor's firm is a person or firm ineligible to be awarded 

government contracts by virtue of the sanctions imposed under section 5 

of the Act.

(2) No part of this contract will be subcontracted to any person or firm 

ineligible for award of a government contract under section 5 of the Act.

(3) The penalty for making false statements is prescribed in the U.S. Criminal 

Code, 18 U.S.C. § 1001.

(q) Variations, Tolerances, and Exemptions Involving Employment
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-42

Notwithstanding any of the provisions in paragraphs (b) through (o) of this 

clause, the following employees may be employed in accordance with the 

following variations, tolerances, and exemptions, which the Secretary of Labor, 

pursuant to section 4(b) of the Act prior to its amendment by Public Law 92-473, 

found to be necessary and proper in the public interest or to avoid serious 

impairment of the conduct of government business:

(1) Apprentices, student-learners, and workers whose earning capacity is 

impaired by age, physical or mental deficiency, or injury may be employed 

at wages lower than the minimum wages otherwise required by section 

2(a)(1) or 2(b)(1) of the Act without diminishing any fringe benefits or cash 

payments in lieu thereof required under section 2(a)(2) of the Act, in 

accordance with the conditions and procedures prescribed for the 

employment of apprentices, student-learners, handicapped persons, and 

handicapped clients of sheltered workshops under section 14 of the Fair 

Labor Standards Act of 1938, in the regulations issued by the 

Administrator (29 CFR parts 520 and 525).

(2) The Administrator will issue certificates under the Act for the employment

of apprentices, student-learners, handicapped persons, or handicapped 

clients of sheltered workshops not subject to the Fair Labor Standards Act 

of 1938, or subject to different minimum rates of pay under the two Acts, 

authorizing appropriate rates of minimum wages (but without changing 

requirements concerning fringe benefits or supplementary cash payments 

in lieu thereof), applying procedures prescribed by the applicable 

regulations issued under the Fair Labor Standards Act of 1938 (29 CFR 

parts 520 and 525).

(3) The Administrator will also withdraw, annul, or cancel such certificates in 

accordance with the regulations in 29 CFR parts 525 and 528.

(r) Apprentices

Apprentices will be permitted to work at less than the predetermined rate for the 

work they perform when they are employed and individually registered in a bona 

fide apprenticeship program registered with a State Apprenticeship Agency which 

is recognized by the U.S. Department of Labor, or if no such recognized agency 

exists in a state, under a program registered with the Office of Apprenticeship 

Training, Employer, and Labor Services (OATELS), U.S. Department of Labor. 

Any employee who is not registered as an apprentice in an approved program 

shall be paid the wage rate and fringe benefits contained in the applicable wage 

determination for the journeyman classification of work actually performed. The 

wage rates paid apprentices shall not be less than the wage rate for their level of 

progress set forth in the registered program, expressed as the appropriate 

percentage of the journeyman's rate contained in the applicable wage 

determination. The allowable ratio of apprentices to journeymen employed on 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-43

the contract work in any craft classification shall not be greater than the ratio 

permitted to the contractor as to its entire workforce under the registered 

program.

(s) Tips

An employee engaged in an occupation in which the employee customarily and 

regularly receives more than $30 a month in tips may have the amount of these 

tips credited by the employer against the minimum wage required by section 

2(a)(1) or section 2(b)(1) of the Act, in accordance with section 3(m) of the Fair 

Labor Standards Act and Regulations 29 CFR part 31. However, the amount of 

credit shall not exceed $1.34 per hour beginning January 1, 1981. To use this 

provision:

(1) the employer shall inform tipped employees about this tip credit allowance 

before the credit is used;

(2) the employees shall be allowed to retain all tips (individually or through a 

pooling arrangement and regardless of whether the employer elects to 

take a credit for tips received);

(3) the employer shall be able to show by records that the employee receives 

at least the applicable Service Contract Labor Standards minimum wage 

through the combination of direct wages and tip credit; and

(4) the use of such tip credit shall have been permitted under any 

predecessor collective bargaining agreement applicable by virtue of 

section 4(c) of the Act.

(t) Disputes Concerning Labor Standards

The U.S. Department of Labor has set forth in 29 CFR parts 4, 6, and 8 

procedures for resolving disputes concerning labor standards requirements. 

Such disputes shall be resolved in accordance with those procedures and not the 

Disputes clause of this contract. Disputes within the meaning of this clause 

include disputes between the contractor (or any of its subcontractors) and the 

contracting office, the U.S. Department of Labor, or the employees or their 

representatives.

(end)

Clause 3-175, Fair Labor Standards Act and Service Contract Labor 

Standards – Price Adjustment (Multi-Year and Option Contracts)

Include the following clause as prescribed in § 332.50(b) (Required Clauses and 

Provisions) and § 410.75.60(c) (Contract Clauses and Provisions).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-44

Fair Labor Standards Act and Service Contract Labor Standards –

Price Adjustment (Multi-Year and Option Contracts) (MAR 2019)

(a) This clause applies to both contracts subject to area prevailing wage 

determinations and contracts subject to collective bargaining agreements.

(b) The contractor warrants that the prices in this contract do not include any 

allowance for any contingency to cover increased costs for which adjustment is 

provided under this clause.

(c) The wage determination, issued under the Service Contract Labor Standards 

statute (41 U.S.C. § 6701 et seq.), by the Administrator, Wage and Hour Division, 

Employment Standards Administration, U.S. Department of Labor, current on the 

anniversary date of a multi-year contract or the beginning of each renewal option 

period, will apply to this contract. If no such determination has been made 

applicable to this contract, then the federal minimum wage as established by 

section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended, (29 U.S.C. 

§ 206) current on the anniversary date of a multi-year contract or the beginning of 

each renewal option period, will apply to this contract.

(d) The contract price, contract unit price labor rates, or fixed hourly labor rates will 

be adjusted to reflect the contractor's actual increase or decrease in applicable 

wages and fringe benefits to the extent that the increase is made to comply with 

or the decrease is voluntarily made by the contractor as a result of:

(1) the Department of Labor wage determination applicable on the 

anniversary date of the multi-year contract, or at the beginning of the 

renewal option period. For example, the prior year wage determination 

required a minimum wage rate of $4.00 per hour. The contractor chose to 

pay $4.10. The new wage determination increases the minimum rate to 

$4.50 per hour. Even if the contractor voluntarily increases the rate to 

$4.75 per hour, the allowable price adjustment is $.40 per hour;

(2) an increased or decreased wage determination otherwise applied to the 

contract by operation of law; or

(3) an amendment to the Fair Labor Standards Act of 1938 that is enacted 

after award of this contract, affects the minimum wage, and becomes 

applicable to this contract under law.

(e) Any adjustment will be limited to increases or decreases in wages and fringe 

benefits as described in paragraph (d) of this clause, and the accompanying 

increases or decreases in social security and unemployment taxes and workers' 

compensation insurance, but shall not otherwise include any amount for general 

and administrative costs, overhead, or profit.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-45

(f) The contractor shall notify the contracting officer of any increase claimed under 

this clause within 30 days after receiving a new wage determination unless this 

notification period is extended in writing by the contracting officer. The contractor 

shall promptly notify the contracting officer of any decrease under this clause, but 

nothing in the clause will preclude the government from asserting a claim within 

the period permitted by law. The notice shall contain a statement of the amount 

claimed and the change in fixed hourly rates (if this is a time-and-materials or 

labor-hour contract), any relevant supporting data, including payroll records, that 

the contracting officer may reasonably require. Upon agreement of the parties, 

the contract price or contract unit price labor rates will be modified in writing. The 

contractor shall continue performance pending agreement on or determination of 

any such adjustment and its effective date.

(g) The contracting officer or an authorized representative will have access to and 

the right to examine any directly pertinent books, documents, papers and records 

of the contractor until the expiration of 3 years after final payment under the 

contract.

(end)

Clause 3-180, Fair Labor Standards Act and Service Contract Labor 

Standards – Price Adjustment

Include the following clause as prescribed in § 332.50(c) (Required Clauses and 

Provisions).

Fair Labor Standards Act and Service Contract Labor Standards –

Price Adjustment (MAR 2019)

(a) This clause applies to both contracts subject to area prevailing wage 

determinations and contracts subject to contractor collective bargaining 

agreements.

(b) The contractor warrants that the prices in this contract do not include any 

allowance for any contingency to cover increased costs for which adjustment is 

provided under this clause.

(c) The contract price, contract unit price labor rates, or fixed hourly labor rates will 

be adjusted to reflect increases or decreases by the contractor in wages and 

fringe benefits to the extent that these increases or decreases are made to 

comply with:

(1) an increased or decreased wage determination applied to this contract by 

operation of law; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-46

(2) an amendment to the Fair Labor Standards Act of 1938 that is enacted 

subsequent to award of this contract, affects the minimum wage, and 

becomes applicable to this contract under law.

(d) Any such adjustment will be limited to increases or decreases in wages and 

fringe benefits as described in paragraph (c) of this clause, and to the 

accompanying increases or decreases in social security and unemployment 

taxes and workers' compensation insurance; it will not otherwise include any 

amount for general and administrative costs, overhead, or profit.

(e) The contractor shall notify the contracting officer of any increase claimed under 

this clause within 30 days after the effective date of the wage change, unless this 

period is extended by the contracting officer in writing. The contractor shall 

promptly notify the contracting officer of any decrease under this clause, but 

nothing in the clause will preclude the government from asserting a claim within 

the period permitted by law. The notice shall contain a statement of the amount 

and the change in fixed hourly rates (if this is a time-and-materials or labor-hour 

contract) claimed and any relevant supporting data that the contracting officer 

may reasonably require. Upon agreement of the parties, the contract price, 

contract unit price labor rates, or fixed hourly rates will be modified in writing. 

The contractor shall continue performance pending agreement on or 

determination of any such adjustment and its effective date.

(f) The contracting officer or an authorized representative will, until the expiration of 

3 years after final payment under the contract, have access to and the right to 

examine any directly pertinent books, documents, papers, and records of the 

contractor.

(end)

Provision 3-185, Evaluation of Compensation for Professional Employees

Include the following provision as prescribed in § 330.10.30(z) (Provisions and 

Clauses).

Evaluation of Compensation for Professional Employees (JAN 2003)

(a) Recompetition of service contracts may in some cases result in lowering the 

compensation (salaries and fringe benefits) paid or furnished professional 

employees. This lowering can be detrimental in obtaining the quality of 

professional services needed for adequate contract performance. It is therefore 

in the judiciary's best interest that professional employees, as defined in 

29 CFR 541, be properly and fairly compensated. As part of their offers, offerors 

will submit a total compensation plan setting forth salaries and fringe benefits 

proposed for the professional employees who will work under the contract. The 

judiciary will evaluate the plan to assure that it reflects a sound management 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-47

approach and understanding of the contract requirements. This evaluation will 

include an assessment of the offeror's ability to provide uninterrupted high-quality 

work. The professional compensation proposed will be considered in terms of its 

impact upon recruiting and retention, its realism, and its consistency with a total 

plan for compensation. Supporting information will include data, such as 

recognized national and regional compensation surveys and studies of 

professional, public and private organizations, used in establishing the total 

compensation structure.

(b) The compensation levels proposed shall reflect a clear understanding of work to 

be performed and shall indicate the capability of the proposed compensation 

structure to obtain and keep suitably qualified personnel to meet mission 

objectives. The salary rates or ranges shall take into account differences in 

skills, the complexity of various disciplines, and professional job difficulty. 

Additionally, offers envisioning compensation levels lower than those of 

predecessor contractors for the same work will be evaluated on the basis of 

maintaining program continuity, uninterrupted high-quality work, and availability 

of required competent professional service employees. Offerors are cautioned 

that lowered compensation for essentially the same professional work may 

indicate lack of sound management judgment and lack of understanding of the 

requirement.

(c) The judiciary is concerned with the quality and stability of the work force to be 

employed on this contract. Professional compensation that is unrealistically low 

or not in reasonable relationship to the various job categories, since it may impair 

the contractor's ability to attract and retain competent professional service 

employees, may be viewed as evidence of failure to comprehend the complexity 

of the contract requirements.

(d) Failure to comply with these provisions may constitute sufficient cause to justify 

rejection of an offer.

(end)

Provision 3-195, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Certification

Include the following provision as prescribed in § 332.50(d) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Certification (MAR 2019)

(a) The offeror shall check following certification:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-48

CERTIFICATION

The offeror [ ] does [ ] does not certify that –

(1) the items of equipment to be serviced under this contract are used 

regularly for other than government purposes, and are sold or traded by 

the offeror (or subcontractor in the case of an exempt subcontractor) in 

substantial quantities to the general public in the course of normal 

business operations;

(2) the services will be furnished at prices which are, or are based on, 

established catalog or market prices for the maintenance, calibration, or 

repair of equipment.

(i) An "established catalog price" is a price included in a catalog, price 

list, schedule, or other form that is regularly maintained by the 

manufacturer or the offeror, is either published or otherwise 

available for inspection by customers, and states prices at which 

sales currently, or were last, made to a significant number of buyers 

constituting the general public.

(ii) An "established market price" is a current price, established in the 

usual course of trade between buyers and sellers free to bargain, 

which can be substantiated from sources independent of the 

manufacturer or contractor; and

(3) the compensation (wage and fringe benefits) plan for all service 

employees performing work under the contract is the same as that used 

for these employees and equivalent employees servicing the same 

equipment of commercial customers.

(b) Certification by the offeror as to its compliance with respect to the contract also 

constitutes its certification as to compliance by its subcontractor if it subcontracts 

out the exempt services. If the offeror certifies to the conditions in paragraph (a) 

of this provision then Clause 3-160, Service Contract Labor Standards, will not 

be included in any resultant contract to this offeror.

(c) If the offeror does not certify to the conditions in paragraph (a) of this provision –

(1) Clause 3-215, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements, will not be included in any resultant contract 

awarded to this offeror; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-49

(2) the offeror shall notify the contracting officer as soon as possible, if the 

contracting officer did not attach a Service Contract Labor Standards

wage determination to the solicitation.

(d) The contracting officer may not make an award to the offeror, if the offeror fails to 

execute the certification in paragraph (a) of this provision or to contact the 

contracting officer as required in paragraph (c) of this provision.

(end)

Clause 3-200, Service Contract Labor Standards – Place of Performance 

Unknown

Include the following clause as prescribed in § 332.50(e) (Required Clauses and 

Provisions).

Service Contract Labor Standards – Place of Performance Unknown 

(MAR 2019)

(a) This contract is subject to the Service Contract Labor Standards, and the place of 

performance was unknown when the solicitation was issued. In addition to 

places or areas identified in wage determinations, if any, attached to the 

solicitation, wage determinations have also been requested for the 

following:________ [insert places or areas]. The contracting officer will request 

wage determinations for additional places or areas of performance if asked to do 

so in writing by _____________ [insert time and date].

(b) Offerors who intend to perform in a place or area of performance for which a 

wage determination has not been attached or requested may nevertheless 

submit offers. However, a wage determination will be requested and 

incorporated in the resultant contract retroactive to the date of contract award, 

and there will be no adjustment in the contract price.

(end)

Clause 3-205, Protest after Award

Include the following clause as prescribed in § 330.10.30(aa) (Provisions and Clauses).

Protest after Award (JAN 2003)

(a) Upon receipt of a notice of protest or a determination that a protest is likely, the 

contracting officer may, by written order to the contractor, direct the contractor to 

stop performance of the work called for by this contract. The order will 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-50

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 will either:

(1) cancel the stop-work order; or

(2) terminate the work covered by the order as provided in the Default, or the 

Termination clause of this 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 will make an equitable adjustment in the delivery schedule or contract 

price, or both, and the contract will 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 this 

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 an offer at any time before final payment under this contract.

(c) If a stop-work order is not canceled and the work covered by the order is 

terminated for the convenience of the judiciary, the contracting officer will 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 will allow, by equitable adjustment 

or otherwise, reasonable costs resulting from the stop-work order.

(e) The judiciary's rights to terminate this contract at any time are not affected by 

action taken under this clause.

(f) If, as the result of the contractor's intentional or negligent misstatement, 

misrepresentation, or mis-certification, a protest related to this contract is 

sustained, and the judiciary pays costs, the judiciary may require the contractor 

to reimburse the judiciary the amount of such costs. In addition to any other 

remedy available, the judiciary may collect this debt by offsetting the amount 

against any payment due the contractor under any contract between the 

contractor and the judiciary.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-51

Provision 3-210, Protests

Include the following provision as prescribed in § 330.10.30(bb) (Provisions and 

Clauses).

Protests (JUN 2014)

(a) The protestor has a choice of protest forums. It is the policy of the judiciary to 

encourage parties first to seek resolution of disputes with the contracting officer. 

If the dispute cannot be resolved with the contracting officer, then it is the policy 

of the judiciary to encourage parties to seek a judiciary resolution of disputes with 

the Administrative Office of the United States Courts. However, if a party files a 

formal protest with an external forum on a solicitation on which it has filed a 

protest with the judiciary, the judiciary protest will be dismissed.

(b) Judiciary protests will be considered only if submitted in accordance with the 

following time limits and procedures:

(1) any protest shall be filed in writing with the contracting officer designated 

in the solicitation for resolution of the protest. It shall identify the 

solicitation or contract protested and set forth a complete statement of the 

alleged defects or grounds that make the solicitation terms or the award or 

proposed award defective. Mere statement of intent to file a protest is not 

a protest.

(2) a protest shall be filed not later than ten (10) calendar days after the basis 

of the protest is known, or should have been known. A protest based on 

alleged improprieties in a solicitation which are apparent prior to the 

closing date for receipt of offers, shall be filed prior to the closing date for 

receipt of offers. The judiciary, in its discretion, may consider the merits of 

any protest which is not timely filed. The office hours of the Administrative 

Office are 8:30 a.m. to 5:00 p.m., eastern time. Time for filing a document 

expires at 5:00 p.m., eastern time, on the last day on which such filing 

may be made.

(3) the protest shall include the following information:

(i) name, address, and fax and telephone numbers of the protester or 

its representative;

(ii) solicitation or contract number;

(iii) detailed statement of the legal and factual grounds for the protest, 

to include a description of resulting alleged prejudice to the 

protester;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-52

(iv) copies of relevant documents;

(v) request for a ruling by the judiciary;

(vi) statement as to the form of relief requested;

(vii) all information establishing that the protester is an interested party 

for the purpose of filing a protest; and

(viii) all information establishing the timeliness of the protest.

(c) Unless stated otherwise elsewhere in this solicitation, protests that are filed 

directly with the judiciary, and copies of any protests that are filed with an 

external forum, shall be served on the contracting officer at the Issuing Office 

address on the standard form, if any, or as provided elsewhere in this solicitation. 

Written and dated acknowledgment of receipt must be obtained from the 

Contracting Officer issuing this solicitation, or authorized designee.

(d) The copy of any protest shall be received in the office designated above within 

one day of filing a protest with an external forum.

(end)

Clause 3-215, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements

Include the following clause as prescribed in § 332.50(f) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements (MAR 2019)

(a) The items of equipment to be serviced under this contract are used regularly for 

other than government purposes, and are sold or traded by the contractor in 

substantial quantities to the general public in the course of normal business 

operations.

(b) The services shall be furnished at prices which are, or are based on, established 

catalog or market prices for the maintenance, calibration, or repair of equipment.

(1) An “established catalog price” is a price included in a catalog, price list, 

schedule, or other form that is regularly maintained by the manufacturer or 

the contractor, is either published or otherwise available for inspection by 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-53

customers, and states prices at which sales currently, or were last, made 

to a significant number of buyers constituting the general public.

(2) An “established market price” is a current price, established in the usual 

course of trade between buyers and sellers free to bargain, which can be 

substantiated from sources independent of the manufacturer or contractor.

(c) The contractor shall use the same compensation (wage and fringe benefits) plan 

for all service employees performing work under the contract as is used for these 

employees and for equivalent employees servicing the same equipment of 

commercial customers.

(d) The contractor is responsible for compliance with all the conditions of this 

exemption by its subcontractors. The contractor shall determine the applicability 

of this exemption to any subcontract on or before subcontract award. In making a 

judgment that the exemption applies, the contractor shall consider all factors and 

make an affirmative determination that all of the conditions in paragraphs (a) 

through (c) of this clause will be met.

(e) If the Department of Labor determines that any conditions for exemption in 

paragraphs (a) through (c) of this clause have not been met, the exemption shall 

be deemed inapplicable, and the contract shall become subject to the Service 

Contract Labor Standards statute. In such case, the procedures at 29 CFR 

4.123(e)(1)(iv) and 29 CFR 4.5(c) will be followed.

(f) The contractor shall include the substance of this clause, including this 

paragraph (f), in subcontracts for exempt services under this contract.

(end)

Provision 3-220, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Certain Services – Certification

Include the following provision as prescribed in § 332.50(g) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Certain Services – Certification (MAR 2019)

(a) The offeror shall check following certification:

CERTIFICATION

The offeror [ ] does [ ] does not certify that –
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-54

(1) The services under the contract are offered and sold regularly to nongovernmental customers, and are provided by the offeror (or 

subcontractor in the case of an exempt subcontract) to the general public 

in substantial quantities in the course of normal business operations;

(2) The contract services are furnished at prices that are, or are based on, 

established catalog or market prices. An “established catalog price” is a 

price included in a catalog, price list, schedule, or other form that is 

regularly maintained by the manufacturer or the offeror, is either published 

or otherwise available for inspection by customers, and states prices at 

which sales currently, or were last, made to a significant number of buyers 

constituting the general public. An “established market price” is a current 

price, established in the usual course of ordinary and usual trade between 

buyers and sellers free to bargain, which can be substantiated from 

sources independent of the manufacturer or offeror;

(3) Each service employee who will perform the services under the contract 

will spend only a small portion of his or her time (a monthly average of 

less than 20 percent of the available hours on an annualized basis, or less 

than 20 percent of available hours during the contract period if the contract 

period is less than a month) servicing the government contract; and

(4) The offeror uses the same compensation (wage and fringe benefits) plan 

for all service employees performing work under the contract as the offeror 

uses for these employees and for equivalent employees servicing 

commercial customers.

(b) Certification by the offeror as to its compliance with respect to the contract also 

constitutes its certification as to compliance by its subcontractor if it subcontracts 

out the exempt services. If the offeror certifies to the conditions in paragraph (a) 

of this provision then Clause 3-160, Service Contract Labor Standards, as 

amended, will not be included in any resultant contract to this offeror.

(c) If the offeror does not certify to the conditions in paragraph (a) of this provision—

(1) Clause 3-225, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Certain Services – Requirements, will not be 

included in any resultant contract to this offeror; and

(2) The offeror shall notify the contracting officer as soon as possible if the 

contracting officer did not attach a Service Contract Labor Standards

wage determination to the solicitation.

(d) The contracting officer may not make an award to the offeror, if the offeror fails to 

execute the certification in paragraph (a) of this provision or to contact the 

Contracting Officer as required in paragraph (c) of this provision.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-55

(end)

Clause 3-225, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Certain Services – Requirements

Include the following clause as prescribed in § 332.50(h) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Certain Services – Requirements (MAR 2019)

(a) The services under this contract are offered and sold regularly to nongovernmental customers, and are provided by the contractor to the general 

public in substantial quantities in the course of normal business operations.

(b) The contract services are furnished at prices that are, or are based on, 

established catalog or market prices. An “established catalog price” is a price 

included in a catalog, price list, schedule, or other form that is regularly 

maintained by the manufacturer or the contractor, is either published or otherwise 

available for inspection by customers, and states prices at which sales currently, 

or were last, made to a significant number of buyers constituting the general 

public. An “established market price” is a current price, established in the usual 

course of ordinary and usual trade between buyers and sellers free to bargain, 

which can be substantiated from sources independent of the manufacturer or 

contractor.

(c) Each service employee who will perform the services under the contract will 

spend only a small portion of his or her time (a monthly average of less than 20 

percent of the available hours on an annualized basis, or less than 20 percent of 

available hours during the contract period if the contract period is less than a 

month) servicing the judiciary contract.

(d) The contractor shall use the same compensation (wage and fringe benefits) plan 

for all service employees performing work under the contract as is used for these 

employees and for equivalent employees servicing commercial customers.

(e) (1) The subcontractor, if any, for exempt services shall be selected for award 

based on other factors in addition to price or cost with the combination of 

other factors at least as important as price or cost; or

(2) A subcontract for exempt services shall be awarded on a sole source 

basis.

(f) The contractor is responsible for compliance with all the conditions of this 

exemption by its subcontractors. The contractor shall determine in advance, 

based on the nature of the subcontract requirements and knowledge of the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-56

practices of likely subcontractors, that all or nearly all likely subcontractors will 

meet the conditions in paragraphs (a) through (d) of this clause. If the services 

are currently being performed under a subcontract, the contractor shall consider 

the practices of the existing subcontractor in making a determination regarding 

the conditions in paragraphs (a) through (d) of this clause. If the contractor has 

reason to doubt the validity of the certification, the requirements of the Service 

Contract Labor Standards statute shall be included in the subcontract.

(g) If the Department of Labor determines that any conditions for exemption at 

paragraphs (a) through (e) of this clause have not been met, the exemption shall 

be deemed inapplicable, and the contract shall become subject to the Service 

Contract Labor Standards statute. In such case, the procedures in at 29 CFR 

4.123(e)(2)(iii) and 29 CFR 4.5(c) will be followed.

(h) The contractor shall include the substance of this clause, including this 

paragraph (h), in subcontracts for exempt services under this contract.

(end)

Clause 3-300, Registration in the System for Award Management (SAM)

Include the following clause as prescribed in § 330.10.30(dd)(1) (Provisions and 

Clauses).

Registration in the System for Award Management (SAM) (OCT 2023)

(a) Definitions. As used in this clause –

"System for Award Management (SAM)" means the federal government owned 

and operated free website that replaced the Central Contractor Registration 

(CCR) and is the primary government repository for contractor information 

required for the conduct of business with the government.

Unique entity identifier (UEI) means a number or other identifier used to identify a 

specific commercial, nonprofit, or Government entity. See www.sam.gov for the 

designated entity for establishing UEI.

"Registered in the SAM database" means that –

(1) The contractor has entered all mandatory information, including the UEI, 

into the SAM database; and

(2) The government has validated all mandatory data fields, to include 

validation of the Taxpayer Identification Number (TIN) with the Internal 

Revenue Service (IRS), and has marked the record "Active". The 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-57

contractor will be required to provide consent for TIN validation to the 

government as a part of the SAM registration process.

(b) (1) By submission of an offer, the offeror acknowledges the requirement that 

a prospective awardee shall be registered in the SAM database prior to 

award, during performance, and through final payment of any contract, 

basic agreement, basic ordering agreement, or blanket purchasing 

agreement resulting from this solicitation.

(2) The offeror shall enter, in the block with its name and address on the 

cover page of its offer, the annotation "Unique Entity Identifier" followed by 

the UEI that identifies the offeror's name and address exactly as stated in 

the offer. The UEI will be used by the contracting officer to verify that the 

offeror is registered in the SAM database.

(c) If the offeror does not have a UEI, it may obtain one at SAM.gov. The offeror 

should be prepared to provide the following information:

(1) company legal business name;

(2) tradestyle, doing business, or other name by which your entity is 

commonly recognized;

(3) company physical street address, city, state and ZIP code;

(4) company mailing address, city, state and ZIP code (if different from 

physical);

(5) company telephone number;

(6) date the company was started;

(7) number of employees at your location;

(8) chief executive officer/key manager;

(9) line of business (industry);

(10) company headquarters name and address (reporting relationship within 

your entity).

(d) If the offeror does not become registered in the SAM database within the time 

prescribed by the contracting officer, the contracting officer will proceed to award 

to the next otherwise successful registered offeror.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-58

(e) Processing time, which normally takes 48 hours, should be taken into 

consideration when registering. Offerors who are not registered should consider 

applying for registration immediately upon receipt of this solicitation.

(f) The contractor is responsible for the accuracy and completeness of the data 

within the SAM database, and for any liability resulting from the government's 

reliance on inaccurate or incomplete data. To remain registered in the SAM 

database after the initial registration, the contractor is required to review and 

update on an annual basis from the date of initial registration or subsequent 

updates its information in the SAM database to ensure it is current, accurate and 

complete. Updating information in the SAM does not alter the terms and 

conditions of this contract and is not a substitute for a properly executed 

contractual document.

(g) Change of Name and Novation Agreements:

(1) If a contractor has legally changed its business name, "doing business as" 

name, or division name (whichever is shown on the contract), or has 

transferred the assets used in performing the contract, but has not 

completed the necessary requirements regarding novation and change-ofname agreements, the contractor shall provide the responsible contracting 

officer a minimum of one business day's written notification of its intention 

to:

(i) change the name in the SAM database;

(ii) comply with the requirements of Guide to Judiciary Policy, Vol. 14, 

§ 745.55; and

(iii) agree in writing to the timeline and procedures specified by the 

responsible contracting officer. The contractor must provide with 

the notification sufficient documentation to support the legally 

changed name.

(2) If the contractor fails to comply with the requirements of paragraph (g)(1) 

of this clause, or fails to perform the agreement at paragraph (g)(1)(iii) of 

this clause, and, in the absence of a properly executed novation or 

change-of-name agreement, the SAM information showing the contractor 

to be other than the contractor indicated in the contract will be considered 

to be incorrect information within the meaning of the "Suspension of 

Payment" paragraph of the electronic funds transfer (EFT) clause of this 

contract.

(h) Assignment of Claims
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-59

The contractor shall not change the name or address for EFT payments or 

manual payments, as appropriate, in the SAM record to reflect an assignee for 

the purpose of assignment of claims. Assignees shall be separately registered in 

the SAM database. Information provided to the contractor's SAM record that 

indicates payments, including those made by EFT, to an ultimate recipient other 

than the contractor will be considered to be incorrect information within the 

meaning of the "Suspension of payment" paragraph of the EFT clause of this 

contract.

(i) Offerors and contractors may obtain information on registration and annual 

confirmation requirements via the internet at http://www.SAM.gov or by calling 1-

866-606-8220 or at http://www.FSD.gov.

(end)

Clause 3-305, Payment by Electronic Funds Transfer – System for Award 

Management (SAM) Registration

Include the following clause as prescribed in § 330.10.30(dd)(2) (Provisions and 

Clauses).

Payment by Electronic Funds Transfer – System for Award 

Management (SAM) Registration (APR 2013)

(a) Method of Payment

(1) All payments by the judiciary under this contract shall be made by 

electronic funds transfer (EFT), except as provided in paragraph (a)(2) of 

this clause.

(2) In the event the judiciary is unable to release one or more payments by 

EFT, the contractor agrees to either:

(i) Accept payment by check or some other mutually agreeable 

method of payment; or

(ii) Request the judiciary to extend the payment due date until such 

time as the judiciary can make payment by EFT (but see paragraph 

(d) of this clause).

(b) Contractor's EFT Information

The judiciary shall make payment to the contractor using the EFT information 

contained in the System for Award Management (SAM) database. In the event 

that the EFT information changes, the contractor shall be responsible for 

providing the updated information to the SAM database.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-60

(c) Mechanisms for EFT Payment

The judiciary will make payment by EFT through the Automated Clearing House 

(ACH) network, subject to the rules of the National Automated Clearing House 

Association. The rules governing Federal payments through the ACH are 

contained in 31 CFR part 210.

(d) Suspension of Payment

If the contractor's EFT information in the SAM database is incorrect, then the 

judiciary need not make payment to the contractor under this contract until 

correct EFT information is entered into the SAM database; and any invoice shall 

be deemed not to be a proper invoice.

(e) Liability for Uncompleted or Erroneous Transfers

(1) If an uncompleted or erroneous transfer occurs because the judiciary used 

the contractor's EFT information incorrectly, the judiciary remains 

responsible for –

(i) Making a correct payment; and

(ii) Recovering any erroneously directed funds.

(2) If an uncompleted or erroneous transfer occurs because the contractor's 

EFT information was incorrect, or was revised within 30 days of judiciary 

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 judiciary 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 

judiciary shall not make payment, and the provisions of paragraph 

(d) of this clause shall apply.

(f) EFT and Assignment of Claims

If the contractor assigns the proceeds of this contract as provided for in the 

assignment of claims terms of this contract, the contractor shall require as a 

condition of any such assignment, that the assignee shall register separately in 

the SAM database and shall be paid by EFT in accordance with the terms of this 

clause. Notwithstanding any other requirement of this contract, payment to an 

ultimate recipient other than the contractor, or a financial institution properly 

recognized under a proper assignment of claims, is not permitted. In all 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-61

respects, the requirements of this clause shall apply to the assignee as if it were 

the contractor. EFT information that 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 judiciary, is incorrect EFT information within the meaning of 

paragraph (d) of this clause.

(g) Liability for Change of EFT Information by Financial Agent

The judiciary is not liable for errors resulting from changes to EFT information 

made by the contractor's financial agent.

(h) Payment Information

The judiciary will not provide EFT payment information. Payment information 

may be obtained by registering as a payee vendor with the United States 

Department of the Treasury at https://www.ipp.gov/. Registered vendors may 

retrieve and/or review check stub advice each time an EFT payment is received.

If the judiciary makes payment by check in accordance with paragraph (a) of this 

clause, the judiciary shall mail the check and any other payment information to 

the remittance address contained in the SAM database.

(end)

Clause 3-310, Payment by Electronic Funds Transfer – Other Than System 

for Award Management (SAM) Registration

Include the following clause as prescribed in § 330.10.30(dd)(3) (Provisions and 

Clauses).

Payment by Electronic Funds Transfer – Other Than System for 

Award Management (SAM) Registration (APR 2013)

(a) Method of Payment

(1) All payments by the judiciary under this contract shall be made by 

electronic funds transfer (EFT) except as provided in paragraph (a)(2) of 

this clause.

(2) In the event the judiciary is unable to release one or more payments by 

EFT, the contractor agrees to either:

(i) Accept payment by check or some other mutually agreeable 

method of payment; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-62

(ii) Request the judiciary to extend payment due dates until such time 

as the judiciary makes payment by EFT (but see paragraph (d) of 

this clause).

(b) Mandatory Submission of Contractor's EFT Information

(1) The contractor is required to provide the judiciary with the information 

required to make payment by EFT (see paragraph (i) of this clause). The 

contractor shall provide this information directly to the office designated in 

paragraph (j) of this clause by no later than 15 days prior to submission of 

the first request for payment. In the event that the EFT information 

changes, the contractor shall be responsible for providing the updated 

information to the same office.

(2) If the contractor provides EFT information applicable to multiple contracts, 

the contractor shall specifically state the applicability of this EFT 

information in terms acceptable to the office designated in paragraph (j).

(c) Mechanisms for EFT Payment

The judiciary will make payment by EFT through the Automated Clearing House 

(ACH) network, subject to the rules of the National Automated Clearing House 

Association. The rules governing Federal payments through the ACH are 

contained in 31 CFR part 210.

(d) Suspension of Payment

(1) The judiciary is not required to make any payment under this contract until 

after receipt, by the office designated in paragraph (j), of the correct EFT 

payment information from the contractor. Until receipt of the correct EFT 

information, any invoice or contract financing request shall be deemed not 

to be a proper invoice.

(2) If the EFT information changes after submission of correct EFT 

information, the judiciary shall begin using the changed EFT information 

no later than 30 days after its receipt by the office designated in paragraph 

(j) to the extent payment is made by EFT. However, the contractor may 

request that no further payments be made until the updated EFT 

information is implemented by the payment office.

(e) Liability for Uncompleted or Erroneous Transfers

(1) If an uncompleted or erroneous transfer occurs because the judiciary used 

the contractor's EFT information incorrectly, the judiciary remains 

responsible for:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-63

(i) Making a correct payment; and

(ii) Recovering any erroneously directed funds.

(2) If an uncompleted or erroneous transfer occurs because the contractor's 

EFT information was incorrect, or was revised within 30 days of judiciary 

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 judiciary 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 

judiciary shall not make payment and the provisions of paragraph 

(d) shall apply.

(f) EFT and Assignment of Claims

If the contractor assigns the proceeds of this contract as provided for in the 

assignment of claims terms of this contract, the contractor shall require as a 

condition of any such assignment, that the assignee shall provide the EFT 

information required by paragraph (i) of this clause to the office designated in 

paragraph (j), and shall be paid by EFT in accordance with the terms of this 

clause. In all respects, the requirements of this clause shall apply to the 

assignee as if it were the contractor. EFT information that 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 judiciary, is incorrect EFT 

information within the meaning of paragraph (d) of this clause.

(g) Liability for Change of EFT Information by Financial Agent

The judiciary is not liable for errors resulting from changes to EFT information 

provided by the contractor's financial agent.

(h) Payment Information

The judiciary will not provide EFT payment information. EFT payment 

information may be obtained by registering as a payee vendor with the United 

States Department of the Treasury at https://www.ipp.gov/. Registered vendors 

may retrieve and/or review check stub advice each time an EFT payment is 

received.

If the judiciary makes payment by check in accordance with paragraph (a) of this 

clause, the judiciary shall mail the check and any other payment information to 

the remittance address provided in accordance with paragraph (i) of this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-64

(i) EFT Information

The contractor shall provide the following information to the office designated in 

paragraph (j) of this clause. The contractor may supply this data for this or 

multiple contracts (see paragraph (b) of this clause). The contractor shall 

designate a single financial agent per contract capable of receiving and 

processing the EFT information using the EFT methods described in paragraph 

(c) of this clause.

(1) The contract number (or other procurement identification number).

(2) The contractor's name and remittance address, as stated in the 

contract(s).

(3) The signature (manual or electronic, as appropriate), title, and telephone 

number of the contract official authorized to provide this information.

(4) The name, address, and 9-digit Routing Transit Number of the contractor's 

financial agent.

(5) The contractor's bank account number and the type of account (checking, 

saving, or lockbox).

(j) Designated Office:

[insert name, address, phone, and fax for court’s paying office]

(end)

Provision 3-315, Submission of Electronic Funds Information with Offer

Include the following provision as prescribed in § 330.10.30(dd)(4) (Provisions and 

Clauses).

Submission of Electronic Funds Information with Offer (APR 2013)

The offeror shall provide, with its offer, the following information that is 

required to make payment by electronic funds transfer (EFT) under any 

contract that results from this solicitation. This submission satisfies the 

requirement to provide EFT information under paragraphs (b)(1) and (i) of 

Clause 3-310, Payment by Electronic Funds Transfer – Other Than 

System for Award Management (SAM) Registration.

(1) The solicitation number (or other procurement identification number).

(2) The offeror's name and remittance address, as stated in the offer.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-65

(3) The signature (manual or electronic, as appropriate), title, and telephone 

number of the offeror's official authorized to provide this information.

(4) The name, address, and 9-digit Routing Transit Number of the offeror's 

financial agent.

(5) The offeror's account number and the type of account (checking, savings, 

or lockbox).

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 4)

Provision 4-1, Type of Contract

Include the following provision as prescribed in § 410.15.20(a) (Solicitation 

Requirements).

Type of Contract (JAN 2003)

The judiciary plans to award a ________________________ (Contracting 

officer inserts specific type of contract) type of contract under this 

solicitation, and all offers shall be submitted on this basis. Alternate offers 

based on other contract types will not be considered.

(end)

Clause 4-5, Ordering

Include the following clause as prescribed in § 410.30.64(a) (Clauses).

Ordering (APR 2013)

(a) Any products and services to be furnished under this contract will be ordered by 

issuance of written delivery orders or task orders by the individuals or activities 

designated in the contract. Such orders may be issued from the effective date of 

the contract through the last day of the contract.

(b) All delivery orders or task orders are subject to the terms and conditions of this 

contract and will specify the date, time and place for the products to be delivered 

or the services to be performed. If the contracting officer so requires, the 

contractor shall provide a written or oral acknowledgment. In the event of a 

conflict between a delivery order or a task order and this contract, this contract 

will control.

(c) If mailed, a delivery order or a task order is considered “issued” when the 

judiciary deposits the order in the mail. Orders may be issued orally, by 

facsimile, or by electronic commerce methods only if authorized in the contract.

(end)

Clause 4-10, Order Limitations

Include the following clause as prescribed in § 410.30.64(b) (Clauses).

Order Limitations (JUN 2014)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

(a) Minimum Order

When the judiciary requires products or services covered by this contract in an 

amount less than ________ (contracting officer insert minimum dollar amount or 

quantity), the judiciary is not obligated to purchase, nor is the contractor obligated 

to furnish, those products or services under this contract.

(b) Maximum Order

The contractor is not obligated to honor:

(1) any order for a single item in excess of ________ (contracting officer 

insert maximum dollar amount or quantity);

(2) any order for a combination of items in excess of ________ (contracting 

officer insert maximum dollar amount or quantity); or

(3) a series of orders from the same ordering office in the course of _____ 

days (contracting officer specify) that together call for quantities exceeding 

the limitations stated in subparagraph (b)(1) or (b)(2) above.

(c) If this is a requirements contract, (i.e., includes Clause 4-20, Requirements) the 

judiciary is not required to order a part of any one requirement from the 

contractor if that requirement exceeds the maximum-order limitations stated in 

paragraph (b) above.

(d) Notwithstanding paragraphs (b) and (c) of this clause, the contractor shall honor 

any order exceeding the maximum order limitations in paragraph (b), unless that 

order (or orders) is returned to the ordering office within _____ days (contracting 

officer specify) after issuance, with written notice stating the contractor’s intent 

not to ship the item (or items) called for and the reasons. Upon receiving this 

notice, the judiciary may acquire the products or services from another source.

(end)

Clause 4-20, Requirements

Include the following clause as prescribed in § 410.30.64(c) (Clauses).

Requirements (APR 2013)

(a) This is an indefinite-delivery requirements contract for the products or services 

specified, and effective for the period stated in the contract. The quantities of 

products or services specified in the contract are estimates only and are not 

purchased by this contract. Except as this contract may otherwise provide, if the 

judiciary's requirements do not result in orders in the quantities described as 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

“estimated” or “maximum” in the contract, that fact will not constitute the basis for 

an equitable price adjustment.

(b) Delivery or performance shall be made only as authorized by orders issued in 

accordance with the Ordering clause. Subject to any limitations in the Order 

Limitations clause or elsewhere in this contract, the contractor shall furnish to the 

judiciary all products or services specified in the contract and called for by orders 

issued in accordance with the Ordering clause.

(c) Except as this contract otherwise provides, the judiciary will order from the 

contractor all the products or services specified in the contract that are required 

to be purchased by the activity or activities specified in the contract.

(d) The judiciary is not required to purchase from the contractor requirements in 

excess of any limit on total orders under this contract.

(e) If the judiciary urgently requires delivery or performance of any quantity of an 

item before the earliest date that delivery may be specified under this contract, 

and if the contractor will not accept an order providing for the accelerated 

delivery, the judiciary may acquire the urgently required products or services 

from another source. In the event that the contractor accepts such an order for 

accelerated delivery, such accelerated delivery shall not constitute the basis for 

an equitable price adjustment.

(f) Any order issued during the effective period of this contract and not completed 

within that period shall be completed by the contractor within the time specified in 

the order. The contract will govern the contractor’s and judiciary’s rights and 

obligations with respect to that order to the same extent as if the order were 

completed during the contract’s effective period.

(end)

Clause 4-25, Indefinite Quantity

Include the following clause as prescribed in § 410.30.64(d) (Clauses).

Indefinite Quantity (APR 2013)

(a) This is an indefinite-delivery indefinite-quantity contract for the products or 

services specified, and effective for the period stated, in the contract. The 

quantities of products and services specified in the contract are estimates only 

and are not purchased by this contract.

(b) Delivery or performance shall be made only as authorized by orders issued in 

accordance with the Ordering clause. The contractor shall furnish to the 

judiciary, when and if ordered, the products or services specified in the contract 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

up to and including the quantity designated as the “maximum.” The judiciary will 

order at least the quantity of products or services designated as the “minimum.”

(c) Except for any limitations on quantities in the Order Limitations clause or 

elsewhere in the contract, there is no limit on the number of orders that may be 

issued.

(d) Any order issued during the effective period of this contract and not completed 

within that period shall be completed by the contractor within the time specified in 

the order. The contract will govern the contractor’s and judiciary’s rights and 

obligations with respect to that order to the same extent as if the order were 

completed during contract’s effective period.

(end)

Provision 4-27, Time-and-Materials/Labor-Hour Proposal Requirements –

Competitive Pricing

Include the following provision as prescribed in § 410.45.50(a) (Provisions and Clauses 

– Labor-Hour and Time-and-Materials Contracts).

Time-and-Materials/Labor-Hour Proposal Requirement – Competitive 

Pricing (APR 2011)

(a) The judiciary contemplates award of a time-and-materials or labor-hour type of 

contract resulting from this solicitation.

(b) The offeror must specify fixed hourly rates in its offer that include wages, general 

and administrative expenses, and profit. The offeror must specify whether the 

fixed hourly rate for each labor category applies to labor performed by –

(1) The offeror;

(2) Subcontractors; and/or

(3) Divisions, subsidiaries, or affiliates of the offeror under a common control;

(c) The offeror must establish fixed hourly rates using –

(1) Separate rates for each category of labor to be performed by each 

subcontractor and for each category of labor to be performed by the 

offeror, and for each category of labor to be transferred between divisions, 

subsidiaries, or affiliates of the offeror under a common control;

(2) Blended rates for each category of labor to be performed by the offeror, 

including labor transferred between divisions, subsidiaries, or affiliates of 

the offeror under a common control, and all subcontractors; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(3) Any combination of separate and blended rates for each category of labor 

to be performed by the offeror, affiliates of the offeror under a common 

control, and subcontractors.

(end)

Provision 4-28, Time-and-Materials/Labor-Hour Proposal Requirements –

Non-Competitive Pricing

Include the following provision as prescribed in § 410.45.50(b) (Provisions and Clauses 

– Labor-Hour and Time-and-Materials Contracts).

Time-and-Materials/Labor-Hour Proposal Requirement – NonCompetitive Pricing (APR 2011)

(a) The judiciary contemplates award of a time-and-materials or labor-hour type of 

contract resulting from this solicitation.

(b) The offeror must specify fixed hourly rates in its offer that include wages, general 

and administrative expenses, and profit for each category of labor to be 

performed by –

(1) The offeror;

(2) Each subcontractor; and

(3) Each division, subsidiary, or affiliate of the offeror under a common 

control;

(c) The fixed hourly rates for services transferred between divisions, subsidiaries, or 

affiliates of the offeror under a common control shall not include profit for the 

transferring organization, but may include profit for the prime contractor.

(end)

Clause 4-30, Payment (Time-and-Materials and Labor-Hour Contracts)

Include the following clause as prescribed in § 410.45.50(c) (Provisions and Clauses –

Labor-Hour and Time-and-Materials Contracts).

Payment (Time-and-Materials and Labor-Hour Contracts) (APR 2011)

(a) The judiciary will pay the contractor as follows upon submission of invoices or 

vouchers approved in writing by the contracting officer or the contracting officer’s 

authorized representative:

(1) Hourly Rate
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(i) Hourly rate means the rate(s) prescribed in the contract for 

payment for labor that meets the labor category qualifications of a 

labor category specified in the contract that are –

• Performed by the contractor;

• Performed by subcontractors; or

• Transferred between divisions, subsidiaries, or affiliates of the 

contractor under a common control.

(ii) The amounts will be computed by multiplying the appropriate hourly 

rates prescribed in the contract by the number of direct labor hours 

performed.

(iii) The hourly rates shall be paid for all labor performed on the 

contract that meets the labor qualifications specified in the contract. 

Labor hours incurred to perform tasks for which labor qualifications 

were specified in the contract will not be paid to the extent the work 

is performed by employees that do not meet the qualifications 

specified in the contract, unless specifically authorized by the 

contracting officer.

(iv) The hourly rates will include wages, indirect costs, general and 

administrative expense, and profit. Fractional parts of an hour will 

be payable on a prorated basis.

(v) Vouchers may be submitted once each month (or at more frequent 

intervals if approved in writing by the contracting officer). The 

contractor will substantiate vouchers (including any subcontractor 

hours reimbursed at the hourly rate in the contract) by evidence of 

actual payment and by –

(A) individual daily job timekeeping records;

(B) records that verify the employees meet the qualifications for 

the labor categories specified in the contract; or

(C) other substantiation approved in writing by the contracting 

officer.

(vi) Promptly after receipt of each substantiated voucher, the judiciary 

will, except as otherwise provided in this contract, and subject to 

the terms of paragraph (e) of this section, pay the voucher as 

approved by the contracting officer or authorized representative.

(vii) Unless otherwise prescribed in the contract, the contracting officer 

may unilaterally issue a contract modification requiring the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

contractor to withhold amounts from its billings until a reserve is set 

aside in an amount that the contracting officer considers necessary 

to protect the judiciary’s interests. The contracting officer may 

require a withhold of five percent of the amounts due under 

paragraph (a) of this clause, but the total amount withheld for the 

contract may not exceed $50,000. The amounts withheld will be 

retained until the contractor executes and delivers the release 

required by paragraph (g) of this clause.

(viii) Unless the contract prescribes otherwise, the hourly rates in the 

contract will not be varied by virtue of the contractor having 

performed work on an overtime basis. If no overtime rates are 

provided in the contract and overtime work is approved in writing in 

advance by the contracting officer, overtime rates may be 

negotiated. Failure to agree upon these overtime rates will be 

treated as a dispute under the Disputes clause of this contract. If 

the contract provides rates for overtime, the premium portion of 

those rates will be reimbursable only to the extent the overtime has 

been approved in writing in advance by the contracting officer.

(b) Materials

(1) For the purposes of this clause –

(i) Direct materials means those materials that enter directly into the 

end product, or that are used or consumed directly in connection 

with the furnishing of the end product or service.

(ii) Materials means –

(A) Direct materials, including supplies transferred between 

divisions, subsidiaries, or affiliates of the contractor under a 

common control;

(B) Subcontracts for supplies and incidental services for which 

there is not a labor category specified in the contract;

(C) Other direct costs (e.g., incidental services for which there is 

not a labor category specified in the contract, travel, 

computer usage charges, etc.); and

(D) Applicable indirect costs.

(2) If the contractor furnishes its own materials that meet the definition of 

commercial item in the Guide to Judiciary Policy’s Glossary of 

Procurement Terms, the price to be paid for such materials must not 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

exceed the contractor’s established catalog or market price, adjusted to 

reflect the quantities being acquired; and actual cost of any modifications 

necessary because of contract requirements.

(3) Except as provided for in paragraph (b)(2) of this clause, the judiciary will 

reimburse the contractor for allowable cost of materials provided the 

contractor –

(i) has made payments for materials in accordance with the terms and 

conditions of the agreement or invoice; or

(ii) ordinarily makes these payments within 30 days of the submission 

of the contractor’s payment request to the judiciary and such 

payment is in accordance with the terms and conditions of the 

agreement or invoice.

(4) Payment for materials is subject to Clause 4-60, Allowable Cost and 

Payment.

(5) The contractor may include allocable indirect costs and other direct costs 

to the extent they are –

(i) comprised only of costs that are clearly excluded from the hourly 

rate;

(ii) allocated in accordance with the contractor’s written or established 

accounting practices; and

(iii) indirect costs are not applied to subcontract that are paid at the 

hourly rates.

(6) To the extent practicable, the contractor shall –

(i) obtain materials at the most advantageous prices available, with 

due regard to securing prompt delivery of satisfactory materials; 

and

(ii) take all cash and trade discounts, rebates, allowances, credits, 

salvage, commissions, and other benefits. When unable to take 

advantage of the benefits, the contractor shall promptly notify the 

contracting officer and give the reasons. The contractor shall give 

credit to the judiciary for cash and trade discounts, rebates, scrap, 

commissions, and other amounts that have accrued to the benefit 

of the contractor, or would have accrued except for the fault or 

neglect of the contractor. The contractor shall not deduct from 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

gross costs the benefits lost without fault or neglect on the part of 

the contractor or lost through fault of the judiciary.

(7) The judiciary will not pay profit or fee to the prime contractor on materials, 

except when reimbursing for commercial items under paragraph (b)(2) 

above.

(c) If the contractor enters into any subcontract that requires consent under Clause 

7-75, Subcontracts, without obtaining such consent, the judiciary is not required 

to reimburse the contractor for any costs incurred under the subcontract prior to 

the date the contractor obtains the required consent. Any reimbursement of 

subcontract costs incurred prior to the date the consent was obtained shall be at 

the sole discretion of the judiciary.

(d) Total Cost

It is estimated that the total cost to the judiciary for the performance of this 

contract shall not exceed the ceiling price set forth in the contract, and the 

contractor agrees to use its best efforts to perform the work specified in the 

contract and all obligations under this contract within such ceiling price. If at any 

time the contractor has reason to believe that the hourly rate payments and 

material costs that will accrue in performing the contract in the next succeeding 

30 days, if added to all other payments and costs previously accrued, will exceed 

85 percent of the ceiling price in the contract, the contractor shall notify the 

contracting officer, giving a revised estimate of the total price to the judiciary for 

performing this contract with supporting reasons and documentation. If at any 

time during the performance of this contract, the contractor has reason to believe 

that the total price to the judiciary for the performance of this contract will be 

substantially greater or less than the then stated ceiling price, the contractor shall 

so notify the contracting officer, giving a revised estimate of the total price for 

performing this contract, with supporting reasons and documentation. If at any 

time during the performance of this contract, the judiciary has reason to believe 

that the work to be required in performing this contract will be substantially 

greater or less than the stated ceiling price, the contracting officer will advise the 

contractor, giving the then revised estimate of the total amount of effort to be 

required under the contract.

(e) Ceiling Price

The judiciary will not be obligated to pay the contractor any amount in excess of 

the ceiling price in the contract, and the contractor shall not be obligated to 

continue performance if to do so would exceed the ceiling price set forth in the 

contract, unless and until the contracting officer notifies the contractor in writing 

that the ceiling price has been increased and specifies in the notice a revised 

ceiling that shall constitute the ceiling price for performance under this contract. 

When and to the extent that the ceiling price set forth in the contract has been 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

increased, any hours expended and material costs incurred by the contractor in 

excess of the ceiling price before the increase will be allowable to the same 

extent as if the hours expended and material costs had been incurred after the 

increase in the ceiling price.

(f) Audit

At any time before final payment under this contract, the contracting officer may 

request audit of the invoices or vouchers and supporting documentation. Each 

payment previously made will be subject to reduction to the extent of amounts, 

on preceding invoices or vouchers, that are found by the contracting officer or 

authorized representative not to have been properly payable and will also be 

subject to reduction for overpayments or to increase for underpayments. Upon 

receipt and written approval of the voucher or invoice designated by the 

contractor as the “completion voucher” or “completion invoice” and supporting 

documentation, and upon compliance by the contractor with all terms of this 

contract (including, without limitation, terms related to patents and the terms of 

paragraph (g) of this clause), the judiciary will promptly pay any balance due the 

contractor. The completion invoice or voucher, and supporting documentation, 

shall be submitted by the contractor as promptly as practicable following 

completion of the work under this contract, but in no event later than one year (or 

such longer period as the contracting officer may approve in writing) from the 

date of completion.

(g) Assignment and Release of Claims

The contractor, and each assignee under an assignment entered into under this 

contract and in effect at the time of final payment under this contract, shall 

execute and deliver, at the time of and as a condition precedent to final payment 

under this contract, a release discharging the judiciary, its officers, agents, and 

employees of and from all liabilities, obligations, and claims arising out of or 

under this contract, subject only to the following exceptions:

(1) specified claims in stated amounts, or in estimated amounts if the 

amounts are not susceptible of exact statement by the contractor;

(2) claims, together with reasonable incidental expenses, based upon the 

liabilities of the contractor to third parties arising out of performing this 

contract, that are not known to the contractor on the date of the execution 

of the release, and of which the contractor gives notice in writing to the 

contracting officer not more than 6 years after the date of the release or 

the date of any notice to the contractor that the judiciary is prepared to 

make final payment, whichever is earlier; or

(3) claims for reimbursement of costs (other than expenses of the contractor 

by reason of its indemnification of the judiciary against patent liability), 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

including reasonable incidental expenses, incurred by the contractor under 

the terms of this contract relating to patents.

(end)

Alternate I (APR 2011): In accordance with § 410.45.50(c) (Provisions and Clauses –

Labor-Hour and Time-and-Materials Contracts), add the following paragraph (h) to the 

basic clause.

(h) The terms of this clause that govern reimbursement for materials furnished are 

considered to be deleted.

Clause 4-35, Execution and Commencement of Work (Letter Contract)

Include the following clause as prescribed in § 410.50.80(a) (Clauses).

Execution and Commencement of Work (Letter Contract) (JAN 2003)

The contractor shall indicate acceptance of this letter contract by signing 

three copies of the contract and returning them to the contracting officer 

not later than __________ (contracting officer inserts date). Upon 

acceptance by both parties, the contractor shall proceed with performance 

of the work, including purchase of necessary materials.

(end)

Clause 4-40, Limitation of Judiciary Liability (Letter Contract)

Include the following clause as prescribed in § 410.50.80(b) (Clauses).

Limitation of Judiciary Liability (Letter Contract) (JAN 2003)

(a) In performing this contract, the contractor is not authorized to make expenditures 

or to incur obligations exceeding $ _______________ (contracting officer inserts 

limit).

(b) The maximum amount for which the judiciary will be liable if this contract is 

terminated is $ ___________________(contracting officer inserts maximum 

liability).

(end)

Clause 4-45, Contract Definitization

Include the following clause as prescribed in § 410.50.80(c) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

Contract Definitization (JAN 2003)

(a) A ________________ (contracting officer inserts type of contract) definitive 

contract is contemplated. The contractor agrees to begin promptly negotiating 

with the contracting officer the terms of a definitive contract that will include:

(1) all judiciary clauses required on the date of execution of the letter contract;

(2) all clauses required by law on the date of execution of the definitive 

contract; and

(3) any other mutually agreeable clauses, terms, and conditions. The 

contractor agrees to submit a __________ (insert specific type of offer; 

e.g., fixed-price or cost-and-fee) offer and detailed cost information 

supporting its offer.

(b) The schedule for definitizing this contract is (insert target date for definitization of 

the contract and dates for submission of offer, beginning of negotiations, and, if 

appropriate, submission of make-or-buy and subcontracting plans and detailed 

cost information):

(1) Definitization target date: __________________________

(2) Offer submission date: __________________________

(3) Beginning of negotiations date: ______________________

(4) Other appropriate dates: ____________________________

(c) If agreement on a definitive contract to supersede this letter contract is not 

reached by the target date in paragraph (b) of this section, or within any 

extension of it granted by the contracting officer, the contracting officer may, with 

the prior written approval of the judiciary Procurement Executive, determine a 

reasonable price or fee, subject to contractor appeal as provided in the Disputes 

clause. In any event, the contractor shall proceed with completion of the 

contract, subject only to the Limitation of Judiciary Liability clause.

(1) After the contracting officer's determination of price or fee, the contract will 

be governed by:

(i) all judiciary required clauses on the date of execution of this letter 

contract for either fixed-price or cost-reimbursement contracts as 

determined by the contracting officer under this paragraph (c);

(ii) all clauses required by law as of the date of the contracting officer's 

determination; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

(iii) any other clauses, terms, and conditions mutually agreed upon.

(2) To the extent consistent with paragraph (c)(1) of this section, all clauses, 

terms, and conditions included in this letter contract will continue in effect, 

except those that by their nature apply only to a letter contract.

(d) The definitive contract resulting from this letter contract will include a negotiated 

___________(contracting officer inserts “firm fixed price” or “total estimated 

reimbursable cost”) in no event to exceed $________________(contracting 

officer inserts the proposed amount upon which the award was based).

(end)

Clause 4-50, Payment of Allowable Costs before Definitization

Include the following clause as prescribed in § 410.50.80(d) (Clauses).

Payment of Allowable Costs before Definitization (JAN 2003)

(a) Reimbursement Rate

Pending the placing of the definitized contract referred to in this letter contract, 

the judiciary will promptly reimburse the contractor for all allowable costs under 

the contract at the following rates:

(1) 100 percent of written approved costs representing financing payments to 

subcontractors under fixed-price subcontracts, provided that the judiciary’s 

payments to the contractor will not exceed 80 percent of the allowable 

costs of those subcontracts;

(2) 100 percent of written approved costs representing cost-reimbursement 

subcontracts, provided, that the judiciary’s payments to the contractor will 

not exceed 85 percent of the allowable costs of those subcontracts;

(3) 85 percent of all other written approved costs.

(b) Limitation of Reimbursement

To determine the amounts payable to the contractor under this letter contract, the 

contracting officer will determine allowable costs. The total reimbursement made 

under this paragraph will not exceed 85 percent of the maximum amount of the 

judiciary’s liability, as stated in this contract.

(c) Invoicing

Payments will be made promptly to the contractor when requested as work 

progresses, but not more often than once each month (or more often if approved 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

in writing by the contracting officer). The contractor may submit to an authorized 

representative of the contracting officer, in such form and reasonable detail as 

the representative may require, an invoice or voucher supported by a statement 

of the claimed allowable costs incurred by the contractor in performance of this 

contract.

(d) Allowable Costs

For the purpose of determining allowable costs, the term “costs” includes:

(1) those recorded costs that result, at the time of the request for 

reimbursement, from payment by cash, check, or other form of actual 

payment for products or services purchased directly for the contract;

(2) when the contractor is not delinquent in payment of costs of contract 

performance in the ordinary course of business, costs incurred, but not 

necessarily paid for:

(i) products and services purchased directly for the contract, provided 

payments will be made:

(A) in accordance with the terms and conditions of a subcontract 

or invoice; and

(B) ordinarily prior to the submission of the contractor’s next 

payment request to the judiciary;

(ii) materials issued from the contractor's stores inventory and placed 

in the production process for use on the contract;

(iii) direct labor;

(iv) direct travel;

(v) other direct in-house costs; and

(vi) properly allocable and allowable indirect costs, as shown on the 

records maintained by the contractor for purposes of obtaining 

reimbursement under judiciary contracts; and

(3) the amount of financing payments that the contractor has paid by cash, 

check, or other forms of payment to subcontractors.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

(e) Audit

At any time before final payment, the contracting officer may have the 

contractor's invoices or vouchers and statements of cost audited. Any payment 

may be:

(1) reduced by any amounts found by the contracting officer not to constitute 

allowable costs; or

(2) adjusted for prior overpayments or under payments made on preceding 

invoices or vouchers.

(end)

Clause 4-55, Economic Price Adjustment – Standard Products

Include the following clause as prescribed in § 410.65.50 (Clauses) and § 410.75.60(b) 

(Contract Clauses and Provisions). The clause may be modified to increase the 10 

percent limit on aggregate increases in paragraph (c)(1), upon written approval by the 

Procurement Executive, PMD.

Economic Price Adjustment – Standard Products (MAR 2019)

(a) The contractor warrants that the unit price stated in the contract for _________ 

[offeror inserts contract line item number (CLIN)] is not in excess of the 

contractor's applicable established price in effect on the contract date for like 

quantities of the same item. The term "unit price" excludes any part of the price 

directly resulting from requirements for preservation, packaging, or packing 

beyond standard commercial practice. The term "established price" means a 

price that:

(1) is an established catalog or market price for a commercial item sold in 

substantial quantities to the general public; and

(2) is the net price after applying any standard trade discounts offered by the 

contractor.

(b) The contractor shall promptly notify the contracting officer of the amount and 

effective date of each decrease in any applicable established price. Each 

corresponding contract unit price will be decreased by the same percentage that 

the established price is decreased. The decrease will apply to those items 

delivered on and after the effective date of the decrease in the contractor's 

established price, and this contract will be modified accordingly.

(c) If the contractor's applicable established price is increased after the contract 

date, the corresponding contract unit price will be increased, upon the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

contractor's written request to the contracting officer, by the same percentage 

that the established price is increased, and the contract will be modified 

accordingly, subject to the following limitations:

(1) the aggregate of the increases in any contract unit price under this clause 

will not exceed 10 percent of the original contract unit price;

(2) the increased contract unit price will be effective:

(i) on the effective date of the increase in the applicable established 

price if the contracting officer receives the contractor's written 

request within 10 days thereafter; or

(ii) if the written request is received later, on the date the contracting 

officer receives the request;

(3) the increased contract unit price will not apply to quantities scheduled 

under the contract for delivery before the effective date of the increased 

contract unit price, unless failure to deliver before that date results from 

causes beyond the control and without the fault or negligence of the 

contractor, within the meaning of the Default clause.

(4) no modification increasing a contract unit price will be executed under this 

paragraph (c) until the contracting officer verifies the increase in the 

applicable established price;

(5) within 30 days after receipt of the contractor's written request, the 

contracting officer may cancel, without liability to either party, any 

undelivered portion of the contract items affected by the requested 

increase.

(d) During the time allowed for the cancellation provided for in paragraph (c)(5) of 

this clause, and thereafter if there is no cancellation, the contractor shall continue 

deliveries according to the contract delivery schedule, and the judiciary will pay 

for such deliveries at the contract unit price, increased to the extent provided by 

paragraph (c) of this clause.

(end)

Clause 4-60, Allowable Cost and Payment

Include the following clause as prescribed in § 410.70.80(a) (Cost Contract Clauses).

Allowable Cost and Payment (APR 2013)

(a) Invoicing
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

The judiciary will make payments to the contractor when requested as work 

progresses, but not more than monthly, in amounts determined to be allowable 

by the contracting officer. The contractor shall submit an invoice or voucher to 

the address specified in the contract, supported by a statement of claimed 

allowable costs of performing this contract, in such form and detail as the 

contracting officer may require.

(b) Reimbursing Costs

(1) For the purpose of reimbursing allowable costs, the term “costs” includes 

only:

(i) those recorded costs that, at the time of the request for 

reimbursement, the contractor has paid by cash, check, or other 

form of actual payment for items or services purchased directly for 

the contract;

(ii) when the contractor is not delinquent in paying costs of contract 

performance in the ordinary course of business, costs incurred, but 

not necessarily paid, for:

(A) products and services purchased directly for the contract 

and associated financing payments to subcontractors, 

provided payments will be made:

(1) in accordance with the terms and conditions of a 

subcontract or invoice; and

(2) ordinarily prior to the submission of the contractor’s 

next payment request to the judiciary;

(B) materials issued from the contractor's inventory and placed 

in the production process for use on the contract;

(C) direct labor;

(D) direct travel;

(E) other direct in-house costs; and

(F) Properly allocable and allowable indirect costs, as shown in 

the records maintained by the contractor for purposes of 

obtaining reimbursement under judiciary contracts; and

(iii) The amount of progress payments that have been paid by cash, 

check, or other forms of payment to subcontractors.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

(2) Accrued costs of contractor contributions under employee pension plans 

will be excluded until actually paid unless:

(i) the contractor’s practice is to make contributions to the retirement 

fund quarterly or more frequently; and

(ii) the contribution does not remain unpaid 30 days after the end of 

the applicable quarter or shorter payment period (any contribution 

remaining unpaid will be excluded from the contractor’s indirect 

costs for payment purposes).

(3) Notwithstanding the audit and adjustment of invoices or vouchers under 

paragraph (e) of this clause, allowable indirect costs under this contract 

will be obtained by applying indirect cost rates established in accordance 

with paragraph (c) of this clause.

(4) Any statements in specifications or other documents incorporated by 

reference in this contract designating performance of services or 

furnishing of materials at the contractor's expense or at no cost to the 

judiciary will be disregarded for purposes of cost reimbursement under this 

clause.

(c) Final Indirect Cost Rates

(1) Final annual indirect cost rates and the appropriate bases will be 

established in accordance with Guide to Judiciary Policy, Vol. 14, Ch. 4 in 

effect for the period covered by the indirect cost rate offer.

(2) (i) The contractor shall submit an adequate final indirect cost rate offer 

to the contracting officer and auditor within 90 days after the end of 

each of its fiscal years, or by a later date approved in writing by the 

contracting officer. The contractor shall support the cost data and 

specify the contract and/or subcontract to which the rates apply.

(ii) The proposed rates shall be based on the contractor's actual cost 

experience for that period. The contracting officer or contracting 

officer's representative and the contractor will establish the final 

indirect cost rates as promptly as practical after receipt of the 

contractor's offer.

(3) The contractor and the contracting officer will execute a written 

understanding setting forth the final indirect cost rates. The understanding 

will specify:

(i) the agreed-upon final annual indirect cost rates;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

(ii) the bases to which the rates apply;

(iii) the periods for which the rates apply;

(iv) any specific indirect cost items treated as direct costs in the 

settlement; and

(v) the affected contract an/or subcontract, identifying any with 

advance agreements or special terms and the applicable rates. 

The understanding will not change any monetary ceiling, contract 

obligation, or specific cost allowance or disallowance provided for in 

this contract. The understanding is incorporated into this contract 

upon execution.

(4) Failure by the parties to agree on a final annual indirect cost rate will be a 

dispute within the meaning of the Disputes clause.

(5) Within 120 days (or a period approved in writing by the contracting officer) 

after settlement of the final annual indirect cost rates for all years of a 

physically complete contract, the contractor shall submit a completion 

invoice or voucher to reflect the settled amounts and rates.

(6) (i) If the contractor fails to submit a completion invoice or voucher 

within the time specified in paragraph (c)(5) of this clause, the 

contracting officer may:

(A) determine the amounts due to the contractor under the 

contract; and

(B) record this determination in a unilateral modification to the 

contract.

(ii) The determination constitutes the final decision of the contracting 

officer in accordance with the Disputes clause.

(d) Billing Rates

Until final annual indirect cost rates are established for any period, the judiciary 

will reimburse the contractor at billing rates established by the contracting officer 

subject to adjustment when the final rates are established. These billing rates:

(1) will be the anticipated final rates; and

(2) may be prospectively or retroactively revised by mutual agreement, at 

either party's request, to prevent substantial overpayment or 

underpayment.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

(e) Audit

At any time or times before final payment, the contracting officer may have the 

contractor's invoices or vouchers and statements of cost audited. Any payment 

may be:

(1) reduced by amounts found by the contracting officer not to constitute 

allowable costs; or

(2) adjusted for prior overpayments or under-payments.

(f) Final Payment

(1) Upon written approval of a completion invoice or voucher, submitted by 

the contractor in accordance with paragraph (c)(5) of this clause, and 

upon the contractor’s compliance with all terms of this contract, the 

judiciary will promptly pay any balance of allowable costs and that part of 

the fee (if any) not previously paid.

(2) The contractor shall pay to the judiciary any refunds, rebates, credits, or 

other amounts (including interest, if any) accruing to or received by the 

contractor or any assignee under this contract, to the extent that those 

amounts are properly allocable to costs for which the contractor has been 

reimbursed by the judiciary. Reasonable expenses incurred by the 

contractor for securing refunds, rebates, credits, or other amounts are 

allowable costs if approved in writing by the contracting officer. Before 

final payment under this contract, the contractor and each assignee whose 

assignment is in effect at the time of final payment shall execute and 

deliver:

(i) an assignment to the judiciary, in form and substance satisfactory 

to the contracting officer, of refunds, rebates, credits, or other 

amounts (including interest, if any) properly allocable to costs for 

which the contractor has been reimbursed by the judiciary under 

this contract; and

(ii) a release discharging the judiciary, its officers, agents, and 

employees from all liabilities, obligations, and claims arising out of 

or under this contract, except:

(A) specified claims stated in exact amounts, or in estimated 

amounts when the exact amounts are not known;

(B) claims (including reasonable incidental expenses) based 

upon liabilities of the contractor to third parties arising out of 

the performance of this contract; provided that the claims are 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

not known to the contractor on the date of the execution of 

the release, and that the contractor gives notice of the claims 

in writing to the contracting officer within six years following 

the release date or notice of final payment date, whichever is 

earlier; and

(C) claims for reimbursement of costs, including reasonable 

incidental expenses, incurred by the contractor under the 

patent clauses of this contract, excluding, however, any 

expenses arising from the contractor's indemnification of the 

judiciary against patent liability.

(end)

Clause 4-65, Fixed Fee

Include the following clause as prescribed in § 410.70.80(b) (Cost Contract Clauses).

Fixed Fee (APR 2013)

(a) The judiciary will pay the contractor for performing this contract the fixed fee 

specified in the contract.

(b) Payment of the fixed fee will be made as specified in the contract; provided that 

after payment of 85 percent of the fixed fee, the contracting officer may withhold 

further payment of fee until a reserve is set aside in an amount that the 

contracting officer considers necessary to protect the judiciary's interest. This 

reserve will not exceed 15 percent of the total fixed fee or the judiciary’s small 

purchase threshold, whichever is less. The contracting officer will release 75 

percent of all fee withholds under this contract after receipt of the certified final 

indirect cost rate offer covering the year of physical completion of this contract, 

provided the contractor has satisfied all other contract terms and conditions, and 

is not delinquent in submitting final vouchers on prior years’ settlements. The 

contracting officer may release up to 90 percent of the fee withheld under this 

contract based on the contractor’s past performance related to the submission 

and settlement of final indirect cost rate offers.

(end)

Clause 4-70, Incentive Fee

Include the following clause as prescribed in § 410.70.80(c) (Cost Contract Clauses).

Incentive Fee (APR 2013)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(a) General

The judiciary will pay the contractor for performing this contract a fee determined 

as provided in the contract.

(b) Target Cost and Target Fee

The target cost and target fee specified in the contract are subject to adjustment 

if the contract is modified in accordance with paragraph (d) of this clause.

(1) “Target cost” as used in this contract, means the estimated cost of this 

contract as initially negotiated, adjusted in accordance with paragraph (d) 

of this clause.

(2) “Target fee” as used in this contract, means the fee initially negotiated on 

the assumption that this contract would be performed for a cost equal to 

the estimated cost initially negotiated, adjusted in accordance with 

paragraph (d) of this clause.

(c) Withholding of Payment

Normally, the judiciary will pay the fee to the contractor as specified in the 

contract. However, when the contracting officer considers that performance or 

cost indicates that the contractor will not achieve target, the judiciary will pay on 

the basis of an appropriate lesser fee. When the contractor demonstrates that 

performance or cost clearly indicates that the contractor will earn a fee 

significantly above the target fee, the judiciary may, at the sole discretion of the 

contracting officer, pay on the basis of an appropriate higher fee. After payment 

of 85 percent of the applicable fee, the contracting officer may withhold further 

payment of fee until a reserve is set aside in an amount that the contracting 

officer considers necessary to protect the judiciary's interest. This reserve will 

not exceed 15 percent of the applicable fee or the judiciary’s small purchase 

threshold, whichever is less. The contracting officer will release 75 percent of all 

fee withholds under this contract after receipt of the certified final indirect cost 

rate offer covering the year of physical completion of this contract, provided the 

contractor has satisfied all other contract terms and conditions, and is not 

delinquent in submitting final vouchers on prior years’ settlements. The 

contracting officer may release up to 90 percent of the fee withholds under this 

contract based on the contractor’s past performance related to the submission 

and settlement of final indirect cost rate offers.

(d) Equitable Adjustments

When the work under this contract is increased or decreased by a contract 

modification or when any equitable adjustment in the target cost is authorized 

under any other clause, equitable adjustments in the target cost, target fee, 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

minimum fee, and maximum fee, as appropriate, will be stated in a supplemental 

agreement to this contract.

(e) Fee Payable

(1) The fee payable under this contract will be the target fee increased by 

____ cents (contracting officer inserts contractor's participation) for every 

dollar that the total allowable cost is less than the target cost or decreased 

by _____ cents (contracting officer inserts contractor's participation) for 

every dollar that the total allowable cost exceeds the target cost. In no 

event will the fee be greater than ____ percent or less than ____ percent 

(contracting officer inserts percentages) of the target cost.

(2) The fee will be subject to adjustment, to the extent provided in paragraph 

(d) of this clause, and within the minimum and maximum fee limitations in 

paragraph (e)(1) of this clause, when the total allowable cost is increased 

or decreased as a consequence of:

(i) payments made under assignments; or

(ii) claims excepted from the release required by paragraph (f)(2) of 

the Allowable Cost and Payment clause.

(3) If this contract is terminated in its entirety, the portion of the target fee 

payable will not be subject to an increase or decrease as provided in this 

paragraph. The termination will be accomplished in accordance with other 

applicable clauses of this contract.

(4) For the purpose of fee adjustment, “total allowable cost” does not include

allowable costs arising out of:

(i) any of the causes covered by the Excusable Delays clause, to the 

extent that they are beyond the control and without the fault or 

negligence of the contractor or any subcontractor;

(ii) the taking effect, after negotiating the target cost, of a statute, court 

decision, written ruling, or regulation that results in the contractor's 

being required to pay or bear the burden of any tax or duty or rate 

increase in a tax or duty;

(iii) any direct cost attributed to the contractor's involvement in litigation 

as required by the contracting officer pursuant to a clause of this 

contract, including furnishing evidence and information requested 

pursuant to the Notice and Assistance Regarding Patent and 

Copyright Infringement clause;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

(iv) the purchase and maintenance of additional insurance not in the 

target cost and required by the contracting officer, or claims for 

reimbursement for liabilities to third persons pursuant to the 

Insurance Liability to third Persons clause;

(v) any claim, loss, or damage resulting from a risk for which the 

contractor has been relieved of liability by the Judicial Property 

clause; or

(vi) any claim, loss, or damage resulting from a risk defined in the 

contract as unusually hazardous or as a nuclear risk and against 

which the judiciary has expressly agreed to indemnify the 

contractor.

(5) All other allowable costs are included in “total allowable cost” for fee 

adjustment in accordance with this paragraph (e), unless otherwise 

specifically provided in this contract.

(f) Contract Modification

The total allowable cost and the adjusted fee determined as provided in this 

clause will be evidenced by a modification to this contract signed by the 

contractor and contracting officer.

(g) Inconsistencies

In the event of any language inconsistencies between this clause and 

provisioning documents or judiciary options under this contract, compensation for 

spare parts or other products and services ordered under such documents will be 

determined in accordance with this clause.

(end)

Clause 4-75, Cost Contract – No Fee

Include the following clause as prescribed in § 410.70.80(d) (Cost Contract Clauses).

Cost Contract – No Fee (APR 2013)

(a) The judiciary will not pay the contractor a fee for performing this contract.

(b) After payment of 80 percent of the total estimated cost of the contract, the 

contracting officer may withhold further payment of allowable cost until a reserve 

is set aside in an amount that the contracting officer considers necessary to 

protect the judiciary's interest. This reserve will not exceed whichever is less —

one percent of the total estimated cost of the contract, or:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(1) $10,000 for nonprofit organizations, or

(2) $100,000 for all other organizations.

(end)

Clause 4-80, Cost-Sharing Contract – No Fee

Include the following clause as prescribed in § 410.70.80(e) (Cost Contract Clauses).

Cost-Sharing Contract – No Fee (APR 2013)

(a) The judiciary will not pay the contractor a fee for performing this contract.

(b) After paying the contractor 80 percent of the judiciary’s share of the total 

estimated cost of performance of the contract, the contracting officer may 

withhold further payment of allowable cost until a reserve is set aside in an 

amount that the contracting officer considers necessary to protect the judiciary's 

interest. This reserve will not exceed whichever is less:

(1) one percent of the judiciary’s share of the total estimated cost as stated in 

the contract, or

(2) $10,000 for nonprofit organizations, or

(3) $100,000 for all other organizations.

(end)

Clause 4-85, Limitation of Cost

Include the following clause as prescribed in § 410.70.80(f) (Cost Contract Clauses).

Limitation of Cost (APR 2013)

(a) The parties estimate that performance of this contract, exclusive of any fee, will 

not cost the judiciary more than (1) the estimated cost specified in the contract, 

or, (2) if this is a cost-sharing contract, the judiciary’s share of the estimated cost 

specified in the contract. The contractor agrees to use its best efforts to perform 

the work specified in the contract and all obligations under this contract within the 

estimated cost, which, if this is a cost-sharing contract includes both the 

judiciary’s and the contractor’s share of the cost.

(b) The contractor shall notify the contracting officer in writing whenever it has 

reason to believe that:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

(1) the costs the contractor expects to incur under this contract in the next 60 

days, when added to all costs previously incurred, will exceed 75 percent 

of the estimated cost stated in the contract; or

(2) the total cost for the performance of this contract, exclusive of any fee, will 

be either greater or substantially less than had been previously estimated.

(c) As part of the notification, the contractor shall provide the contracting officer a 

revised estimate of the total cost of performing this contract.

(d) Except as required by other provisions of this contract, specifically citing and 

stated to be an exception to this clause:

(1) the judiciary is not obligated to reimburse the contractor for costs incurred 

in excess of (i) the estimated cost stated in the contract, or (ii) if this is a 

cost-sharing contract, the estimated cost to the judiciary stated in the 

contract; and

(2) the contractor is not obligated to continue performance under this contract 

(including actions under the Termination clause of this contract) or 

otherwise incur costs in excess of the estimated cost or otherwise incur 

costs in excess of the estimated cost stated in the contract, until the 

contracting officer (i) notifies the contractor in writing that the estimated 

cost has been increased and (ii) provides a revised estimated total cost of 

performing this contract. If this is a cost-sharing contract, the increase will 

be allocated in accordance with the formula stated in the contract.

(e) No notice, communication, or representation in any other form other than that 

specified in paragraph (d)(2) of this clause, or from any person other than the 

contracting officer, will affect this contract’s estimated cost to the judiciary. In the 

absence of the specified notice, the judiciary is not obligated to reimburse the 

contractor for any costs in excess of the estimated cost or, if this is a cost-sharing 

contract, for any costs in excess of the estimated cost to the judiciary stated in 

the contract, whether those excess costs were incurred during the course of the 

contract or as a result of termination.

(f) If the estimated cost stated in the contract is increased, any costs the contractor 

incurs before the increase that are in excess of the previously estimated cost will 

be allowable to the same extent as if incurred afterwards, unless the contracting 

officer issues a termination or other notice directing that the increase is solely to 

cover termination or other specified expenses.

(g) Change orders will not be considered an authorization to exceed the estimated 

cost to the judiciary stated in the contract, unless they contain a statement 

increasing the estimated cost.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

(h) If this contract is terminated or the estimated cost is not increased, the judiciary 

and the contractor will negotiate an equitable distribution of all property produced 

or purchased under the contract, based upon the share of costs incurred by 

each.

(end)

Clause 4-90, Limitation of Funds

Include the following clause as prescribed in § 410.70.80(g) (Cost Contract Clauses).

Limitation of Funds (APR 2013)

(a) The parties estimate that performance of this contract will not cost the judiciary 

more than (1) the estimated cost stated in the contract, or (2) if this is a costsharing contract, the judiciary’s share of the estimated cost stated in the contract. 

The contractor agrees to use its best efforts to perform the work specified in the 

contract and all obligations under this contract within this estimated cost, which if 

this is a cost-sharing contract, includes both the judiciary’s and the contractor’s 

share of the cost.

(b) The contract specifies the amount presently available for payment by the 

judiciary and allotted to this contract, the items covered, the judiciary’s share of 

the cost if this is a cost-sharing contract, and the period of performance it is 

estimated that allotted amount will cover. The parties contemplate that the 

judiciary will allot additional funds incrementally to the contract up to the full 

estimated cost to the judiciary stated in the contract, exclusive of any fee. The 

contractor agrees to perform, or have performed, work on the contract up to the 

point at which the total amount paid and payable by the judiciary under the 

contract approximates but does not exceed the total amount actually allotted by 

the judiciary to the contract.

(c) The contractor shall notify the contracting officer in writing whenever it has 

reason to believe that the costs it expects to incur under this contract in the next 

60 days, when added to all costs previously incurred, will exceed 75 percent of 

(1) the total amount so far allotted to the contract by the judiciary or, (2) if this is a 

cost-sharing contract, the amount then allotted to the contract by the judiciary 

plus the contractor’s corresponding share. The notice shall state the estimated 

amount of additional funds required to continue performance for the period 

specified in the contract.

(d) Sixty days before the end of the period specified in the contract, the contractor 

shall notify the contracting officer in writing of the estimated amount of additional 

funds, if any, required to continue timely performance under the contract or for 

any further period specified in the contract or otherwise agreed upon, and when 

the funds will be required.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

(e) If, after notification, additional funds are not allotted by the end of the period 

specified in the contract or another agreed-upon date, upon the contractor’s 

written request, the contracting officer will terminate this contract on that date in 

accordance with the provisions of the Termination clause of this contract. If the 

contractor estimates that the funds available will allow it to continue to discharge 

its obligations beyond that date, it may specify a later date in its request, and the 

contracting officer may terminate this contract on that later date.

(f) Except as required by other provisions of this contract specifically citing and 

stated to be an exception to this clause:

(1) the judiciary is not obligated to reimburse the contractor for costs incurred 

in excess of the total amount allotted by the judiciary to this contract; and

(2) the contractor is not obligated to continue performance under this contract 

(including actions under the contract's Termination clause of this contract) 

or otherwise incur costs in excess of:

(i) the amount then allotted to the contract by the judiciary or;

(ii) if this is a cost-sharing contract, the amount then allotted by the 

judiciary to the contract plus the contractor’s corresponding share, 

until the contracting officer notifies the contractor in writing that the 

amount allotted by the judiciary has been increased and specifies 

an increased amount, which will then constitute the total amount 

allotted by the judiciary to this contract.

(g) The estimated cost will be increased to the extent (1) the amount allotted by the 

judiciary or, (2) if this is a cost-sharing contract, the amount then allotted by the 

judiciary to the contract plus the contractor’s corresponding share, exceeds the 

estimated cost stated in the contract. If this is a cost-sharing contract, the 

increase will be allocated in accordance with the formula specified in the 

contract.

(h) No notice, communication, or representation in any other form other than that 

specified in paragraph (f)(2) of this clause, or from any person other than the 

contracting officer, will affect the amount allotted by the judiciary to this contract. 

In the absence of the specified notice, the judiciary is not obligated to reimburse 

the contractor for any costs in excess of the total amount allotted by the judiciary 

to this contract, whether incurred during the course of the contract or as a result 

of termination.

(i) When and to the extent that the amount allotted by the judiciary to the contract is 

increased, any costs the contractor incurs before the increase that are in excess 

of:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

(1) the amount previously allotted by the judiciary or;

(2) if this is a cost-sharing contract, the amount previously allotted by the 

judiciary to the contract plus the contractor’s corresponding share, will be 

allowable to the same extent as if incurred afterward, unless the 

contracting officer issues a termination or other notice and directs that the 

increase is solely to cover termination or other specified expenses.

(j) Change orders will not be considered an authorization to exceed the amount 

allotted by the judiciary stated in the contract, unless they contain a statement 

increasing the amount allotted.

(k) Nothing in this clause will affect the right of the judiciary to terminate this 

contract. If this contract is terminated, the judiciary and the contractor will 

negotiate an equitable distribution of all property produced or purchased under 

the contract, based upon the share of costs incurred by each.

(l) If the judiciary does not allot sufficient funds to allow completion of the work, the 

contractor is entitled to a percentage of the fee stated in the contract equaling the 

percentage of completion of the work contemplated by this contract.

(end)

Clause 4-150, Cancellation Under Multi-Year Contracts

Include the following clause as prescribed in § 410.75.60(a) (Contract Clauses and 

Provisions).

Cancellation Under Multi-Year Contracts (JUN 2014)

(a) “Cancellation,” as used in this clause, means that the judiciary is canceling all 

line items for all products or services in the contract year(s) subsequent to that in 

which notice of cancellation is provided.

(b) Except for cancellation under this clause or termination under the Default clause, 

any reduction by the contracting officer in the requirements of this contract shall 

be considered a termination under the Termination for Convenience of the 

Judiciary clause.

(c) If cancellation under this clause occurs, the contractor will be paid a cancellation 

charge not exceeding the cancellation ceiling specified in the contract as 

applicable at the time of cancellation.

(d) The cancellation charge will cover only:

(1) Costs:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

(i) Incurred by the contractor and/or subcontractor;

(ii) Reasonably necessary for performance of the contract; and

(iii) That would have been equitably amortized over the entire multiyear contract period but, because of the cancellation, are not so 

amortized; and

(2) A reasonable profit or fee on the costs.

(e) The cancellation charge shall be computed and the claim made for it as if the 

claim were being made under the Termination for Convenience of the Judiciary 

clause of this contract. The contractor shall submit the claim promptly but no 

later than 1 year from the date of notification that funds will not be made available 

for continued performance.

(f) The contractor’s claim may include:

(1) Reasonable fixed costs which are applicable to and normally would have 

been amortized in all products or services which are multi-year 

requirements;

(2) Allocable portions of the costs of facilities acquired or established for the 

conduct of the work, to the extent that it is impracticable for the contractor 

to use the facilities in its commercial work, and if the costs are not charged 

to the contract through overhead or otherwise depreciated;

(3) Costs incurred for the assembly, training, and transportation to and from 

the job site of a specialized work force; and

(4) Costs not amortized solely because the cancellation had precluded 

anticipated benefits of contractor or subcontractor learning.

(g) The claim shall not include:

(1) Labor, material, or other expenses incurred by the contractor or 

subcontractors for performance of the canceled work;

(2) Any cost already paid to the contractor;

(3) Anticipated profit or unearned fee on the canceled work; or

(4) For service contracts, the remaining useful commercial life of facilities. 

“Useful commercial life” means the commercial utility of the facilities rather 

than their physical life with due consideration given to such factors as 

location of facilities, their specialized nature, and obsolescence.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

(h) This contract may include an option clause with the period for exercising the 

option limited to the date in the contract for notification that funds are available 

for the next succeeding contract year. If so, the contractor agrees not to include 

in option quantities any costs of a startup or fixed nature that have been fully set 

forth in the contract. The contractor further agrees that the option quantities will 

reflect only those variable costs and a reasonable profit or fee necessary to 

furnish the additional option quantities.

(i) Quantities added to the original contract through the option clause of this contract 

shall be included in the quantity canceled for the purpose of computing allowable 

cancellation charges.

(end)

Provision 4-155, Alternate Awards

Include the following clause as prescribed in § 410.75.60(d) (Contract Clauses and 

Provisions).

Alternate Awards (JUN 2014)

If the solicitation has requested pricing for both a multi-year award and an 

award of a base year and option years, the judiciary reserves the right to 

award only the initial year’s requirement, without options.

(end)

Clause 4-160, Cancellation Ceilings

Include the following clause as prescribed in § 410.75.60(e) (Contract Clauses and 

Provisions).

Cancellation Ceilings (JUN 2014)

The cancellation ceilings applicable to each contract period are set forth 

below:

If Cancellation Takes 

Place Before

The Cancellation Ceiling is

Contract Year 2

Contract Year 3

Contract Year 4

Contract Year 5
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

(end)

Provision 4-165, Price Proposal Instruction – Multi-Year Contract

Include the following provision as prescribed in § 410.75.60(f) (Contract Clauses and 

Provisions).

Price Proposal Instruction – Multi-Year Contract (JUN 2014)

Offerors must include in their price proposal a separate cancellation 

ceiling (on either a percentage or dollar basis) for each contract year 

subject to cancellation. Price proposals must include the rationale and 

supporting data for each proposed cancellation ceiling. Upon award, the 

applicable cancellation ceilings will be inserted in Clause 4-160. These 

ceiling amounts apply to any claim submitted under Clause 4-150 in the 

event of actual cancellation of the awarded contract, and will not be part of 

any price evaluation for award.

(end)

Clause 4-170, Limitation of Judiciary’s Obligation

Include the following clause as prescribed in § 410.25.10(b) (Description).

Limitation of Judiciary’s Obligation (JUN 2014)

(a) Contract line item(s) ______ is/are incrementally funded. The sum of $ * is 

presently available for payment and allotted to this contract. An allotment 

schedule is contained in paragraph (j) of this clause.

(b) For item(s) identified in paragraph (a) of this clause, the contractor agrees to 

perform up to the point at which the total amount payable by the judiciary, 

including reimbursement in the event of termination of those item(s) for the

judiciary’s convenience, approximates the total amount currently allotted to the 

contract. The contractor is not authorized to continue work on those item(s) 

beyond that point. The judiciary will not be obligated in any event to reimburse 

the contractor in excess of the amount allotted to the contract for those item(s) 

regardless of anything to the contrary in the clause entitled “Termination for 

Convenience of the Judiciary.” As used in this clause, the total amount payable 

by the judiciary in the event of termination of applicable contract line item(s) for 

convenience includes costs, profit, and estimated termination settlement costs for 

those item(s).

(c) Notwithstanding the dates specified in the allotment schedule in paragraph (j) of 

this clause, the contractor will notify the contracting officer in writing at least 

ninety days prior to the date when, in the contractor’s best judgment, the work 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

will reach the point at which the total amount payable by the judiciary, including 

any cost for termination for convenience, will approximate 85 percent of the total 

amount then allotted to the contract for performance of the applicable item(s). 

The notification will state: (1) the estimated date when that point will be reached; 

and (2) an estimate of additional funding, if any, needed to continue performance 

of applicable line items up to the next scheduled date for allotment of funds 

identified in paragraph (j) of this clause, or to a mutually agreed upon substitute 

date. The notification will also advise the contracting officer of the estimated 

amount of additional funds that will be required for the timely performance of the 

item(s) funded pursuant to this clause, for a subsequent period as may be 

specified in the allotment schedule in paragraph (j) of this clause or otherwise 

agreed to by the parties. If after such notification additional funds are not allotted 

by the date identified in the contractor’s notification, or by an agreed substitute 

date, the contracting officer will terminate any item(s) for which additional funds 

have not been allotted, pursuant to the clause of this contract entitled 

“Termination for Convenience of the Judiciary.”

(d) When additional funds are allotted for continued performance of the contract line 

item(s) identified in paragraph (a) of this clause, the parties will agree as to the 

period of contract performance which will be covered by the funds. The 

provisions of paragraphs (b) through (d) of this clause will apply in like manner to 

the additional allotted funds and agreed substitute date, and the contract will be 

modified accordingly.

(e) If, solely by reason of failure of the judiciary to allot additional funds, by the dates 

indicated below, in amounts sufficient for timely performance of the contract line 

item(s) identified in paragraph (a) of this clause, the contractor incurs additional 

costs or is delayed in the performance of the work under this contract and if 

additional funds are allotted, an equitable adjustment will be made in the price or 

prices (including appropriate target, billing, and ceiling prices where applicable) 

of the item(s), or in the time of delivery, or both. Failure to agree to any such 

equitable adjustment hereunder will be a dispute concerning a question of fact 

within the meaning of the clause entitled “Disputes.”

(f) The judiciary may at any time prior to termination allot additional funds for the 

performance of the contract line item(s) identified in paragraph (a) of this clause.

(g) The termination provisions of this clause do not limit the rights of the judiciary 

under the clause entitled “Termination for Default.” The provisions of this clause 

are limited to the work and allotment of funds for the contract line item(s) set forth 

in paragraph (a) of this clause. This clause no longer applies once the contract is 

fully funded except with regard to the rights or obligations of the parties 

concerning equitable adjustments negotiated under paragraphs (d) and (e) of this 

clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

(h) Nothing in this clause affects the right of the judiciary to terminate this contract 

pursuant to the clause of this contract entitled “Termination for Convenience of 

the Judiciary.”

(i) Nothing in this clause shall be construed as authorization of voluntary services 

whose acceptance is otherwise prohibited under 31 U.S.C. § 1342.

(j) The parties contemplate that the judiciary will allot funds to this contract in 

accordance with the following schedule:

On execution of contract $ ________

(month) (day), (year) $ ________

(month) (day), (year) $ ________

(month) (day), (year) $ ________

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 5)

Clause 5-1, Payments under Personal and Professional Services Contracts

Include the following clause as prescribed in § 510.50 (Clause) and § 520.75(c) 

(Provisions and Clauses).

Payments under Personal and Professional Services Contracts (APR 

2013)

(a) The judiciary will pay the contractor:

(1) for the services performed by the contractor;

(2) as set forth in the contract;

(3) at the rates prescribed;

(4) upon the submission by the contractor of proper invoices or time 

statements to the office or officer designated and at the time provided for 

in this contract.

(b) The judiciary will also pay the contractor:

(1) a per diem rate in lieu of subsistence for each day the contractor is in a 

travel status away from home or regular place of employment in 

accordance with Judiciary Travel Regulations as authorized in appropriate 

Travel Orders; and

(2) any other transportation expenses if provided for in the contract.

(end)

Clause 5-5, Non-disclosure (Professional Services)

Include the following clause as prescribed in § 520.75(d) (Provisions and Clauses).

Non-disclosure (Professional Services) (JAN 2003)

The contractor acknowledges that confidential information might be 

generated or made available during the course of performance of this 

agreement. In addition to the restrictions on disclosure established under 

the contractor's code of ethics, the contractor specifically agrees not to 

disclose any information received or generated under this contract, unless 

its release is approved in writing by the contracting officer. The contractor 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

further agrees to assert any privilege allowed by law and to defend 

vigorously judiciary rights to confidentiality.

(end)

Clause 5-10, Inspection of Professional Services

Include the following clause as prescribed in § 520.75(e) (Provisions and Clauses).

Inspection of Professional Services (SEP 2010)

(a) The contracting officer may, at any time or place, inspect the services performed 

and the products delivered, including documents and reports. The contracting 

officer may reject any products or services that do not meet the highest 

standards of professionalism, no matter what type of contract is employed, and in 

addition to any specific standards of quality set out in this agreement. No 

payment will be due for any products or services rejected under this clause.

(b) Acceptance of any product or service does not relieve the contractor of the duties 

imposed by contractor's code of professional ethics. The contractor remains 

liable for the period allowed under federal law for claims by the United States, for 

any errors or omissions occurring during performance. All partners or principals 

agree that they will be jointly and severally liable for such errors and omissions.

(end)

Clause 5-15, RESERVED

Clause 5-20, Records Ownership

Include the following clause as prescribed in § 520.75(g) (Provisions and Clauses).

Records Ownership (JAN 2003)

Notwithstanding any state law providing for retention of rights in the 

records, the contractor agrees that the judiciary may, at its option, demand 

and take without additional compensation all records relating to the 

services provided under this agreement. The contractor shall turn over all 

such records upon request but may retain copies of documents produced 

by the contractor.

(end)

Provision 5-25, Identification of Uncompensated Overtime

Include the following provision as prescribed in § 520.75(h) (Provisions and Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

Identification of Uncompensated Overtime (JAN 2003)

(a) Definitions. As used in this provision:

"Uncompensated overtime" means the hours worked without additional 

compensation in excess of an average of 40 hours per week by direct charge 

employees who are exempt from the Fair Labor Standards Act. Compensated 

personal absences such as holidays, vacations, and sick leave shall be included 

in the normal work week for purposes of computing uncompensated overtime 

hours.

"Uncompensated overtime rate" is the rate that results from multiplying the hourly 

rate for a 40-hour work week by 40, and then dividing by the proposed hours per 

week. For example, 45 hours proposed on a 40-hour work week basis at $20 per 

hour would be converted to an uncompensated overtime rate of $17.78 per hour 

($20.00 x 40 divided by 45 = $17.78).

(b) For any proposed hours against which an uncompensated overtime rate is 

applied, the offeror shall identify in its offer the hours in excess of an average of 

40 hours per week, by labor category at the same level of detail as compensated 

hours, and the uncompensated overtime rate per hour, whether at the prime or 

subcontract level. This includes uncompensated overtime hours that are in 

indirect cost pools for personnel whose regular hours are normally charged 

direct.

(c) The offeror's accounting practices used to estimate uncompensated overtime 

shall be consistent with its cost accounting practices used to accumulate and 

report uncompensated overtime hours.

(d) Offers that include unrealistically low labor rates, or that do not otherwise 

demonstrate cost realism, will be considered in a risk assessment and will be 

evaluated for award in accordance with that assessment.

(e) The offeror shall include a copy of its policy addressing uncompensated overtime 

with its offer.

(end)

Clause 5-30, Authorization and Consent

Include the following clause as prescribed in § 330.10.30(cc) (Provisions and Clauses), 

§ 530.70.60(a) (Clauses), and § 660.10(a) (In General).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

Authorization and Consent (JAN 2003)

(a) The judiciary authorizes and consents to all use and manufacture, in performing 

this contract or any subcontract at any tier, of any invention described in and 

covered by a United States patent (1) embodied in the structure or composition 

of any article the delivery of which is accepted by the judiciary under this contract 

or (2) used in machinery, tools, or methods whose use necessarily results from 

compliance by the contractor or a subcontractor with (i) specifications or written 

provisions forming a part of this contract or (ii) specific written instructions given 

by the contracting officer directing the manner of performance. The entire liability 

to the judiciary for infringement of a patent of the United States will be 

determined solely by the provisions of the indemnity clause, if any, included in 

this contract or any subcontract hereunder (including any lower-tier subcontract), 

and the judiciary assumes liability for all other infringement to the extent of the 

authorization and consent herein above granted.

(b) The contractor agrees to include, and require inclusion of, this clause, suitably 

modified to identify the parties, in all subcontracts at any tier for products or 

services (including construction, architect-engineer services, and materials, 

products, models, samples, and design or testing services expected to exceed 

the judiciary’s small purchase threshold); however, omission of this clause from 

any subcontract, including those at or below the judiciary’s small purchase 

threshold, does not affect this authorization and consent.

(end)

Alternate I: (JAN 2003) As prescribed in § 330.10.30(cc) (Provisions and 

Clauses), substitute the following for paragraph (a) of the clause:

(a) The judiciary authorizes and consents to all use and manufacture in the 

performance of any order at any tier or subcontract at any tier placed under this 

contract for communication services and facilities for which rates, charges, and 

tariffs are not established by a judiciary regulatory body, of any invention 

described in and covered by a United States patent:

(1) embodied in the structure or composition of any article the delivery of 

which is accepted by the judiciary under this contract; or

(2) used in machinery, tools, or methods whose use necessarily results from 

compliance by the contractor or a subcontractor with specifications or 

written provisions forming a part of this contract or with specific written 

instructions given by the contracting officer directing the manner of 

performance.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

Clause 5-35, Payments Under Fixed-Price Architect-Engineer Contracts

Include the following clause as prescribed in § 530.70.60(b) (Clauses).

Payments under Fixed-Price Architect-Engineer Contracts (JAN 

2003)

(a) Estimates shall be made monthly of the amount and value of the work and 

services performed by the contractor under this contract which meet the 

standards of quality established under this contract. The estimates shall be 

prepared by the contractor and accompanied by any supporting data required by 

the contracting officer.

(b) Upon written approval of the estimate by the contracting officer, payment upon 

properly executed vouchers will be made to the contractor, as soon as 

practicable, of 90 percent of the written approved amount, less all previous 

payments; provided, that payment may be made in full during any months in 

which the contracting officer determines that performance has been satisfactory. 

Also, whenever the contracting officer determines that the work is substantially 

complete and that the amount retained is in excess of the amount adequate for 

the protection of the judiciary, the contracting officer may release the excess 

amount to the contractor.

(c) Upon satisfactory completion by the contractor and acceptance by the 

contracting officer of the work done by the contractor under the "Statement of 

Architect-Engineer Services," the contractor will be paid the unpaid balance of 

any money due for work under the statement, including retained percentages 

relating to this portion of the work. Upon satisfactory completion and final 

acceptance of the construction work, the contractor shall be paid any unpaid 

balance of money due under this contract.

(d) Before final payment under the contract, or before settlement upon termination of 

the contract, and as a condition precedent thereto, the contractor shall execute 

and deliver to the contracting officer a release of all claims against the judiciary 

arising under or by virtue of this contract, other than any claims that are 

specifically excepted by the contractor from the operation of the release in 

amounts stated in the release.

(e) Notwithstanding any other provision in this contract, and specifically paragraph 

(b) of this clause, progress payments will not exceed 80 percent on work 

accomplished on undefinitized contract actions. A "contract action" is any action 

resulting in a contract including contract modifications for additional products or 

services, but not including contract modifications that are within the scope and 

under the terms of the contract, such as contract modifications issued pursuant 

to the Changes clause, or funding and other administrative changes.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(end)

Clause 5-40, RESERVED

Clause 5-45, Design Within Funding Limitations

Include the following clause as prescribed in § 530.70.60(c) (Clauses), filling in the 

dollar amount in (c).

Design Within Funding Limitations (JAN 2003)

(a) The contractor shall accomplish the design services required under this contract 

so as to permit the award of a contract, using standard judiciary procedures, for 

the construction of the facilities designed at a price that does not exceed the 

estimated construction contract price as set forth in paragraph (c) of this clause. 

When offers for the construction contract are received that exceed the estimated 

price, the contractor shall perform such redesign and other services as are 

necessary to permit contract award within the funding limitation. These 

additional services shall be performed at no increase in the price of this contract. 

However, the contractor shall not be required to perform such additional services 

at no cost to the judiciary if the unfavorable offers are the result of conditions 

beyond its reasonable control.

(b) The contractor will promptly advise the contracting officer if it finds that the 

project being designed will exceed or is likely to exceed the funding limitations 

and it is unable to design a usable facility within these limitations. Upon receipt 

of such information, the contracting officer will review the contractor's revised 

estimate of construction cost. The judiciary may, if it determines that the 

estimated construction contract price set forth in this contract is so low that award 

of a construction contract not in excess of such estimate is improbable, authorize 

a change in scope or materials as required to reduce the estimated construction 

cost to an amount within the estimated construction contract price set forth in 

paragraph (c) of this clause, or the judiciary may adjust such estimated 

construction contract price. When offers are not solicited or are unreasonably 

delayed, the judiciary will prepare an estimate of constructing the design 

submitted and such estimate will be used in lieu of offers to determine 

compliance with the funding limitation.

(c) The estimated construction contract price for the project described in this 

contract is $______.

(end)

Clause 5-50, Responsibility of the Architect-Engineer Contractor

Include the following clause as prescribed in § 530.70.60(d) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Responsibility of the Architect-Engineer Contractor (JAN 2003)

(a) The contractor shall be responsible for the professional quality, technical 

accuracy, and the coordination of all designs, drawings, specifications, and other 

services furnished by the contractor under this contract. The contractor shall, 

without additional compensation, correct or revise any errors or deficiencies in its 

designs, drawings, specifications, and other services.

(b) Neither the judiciary's review, approval or acceptance of, nor payment for, the 

services required under this contract will be construed to operate as a waiver of 

any rights under this contract or of any cause of action arising out of the 

performance of this contract, and the contractor shall be and remain liable to the 

judiciary in accordance with applicable law for all damages to the judiciary 

caused by the contractor's negligent performance of any of the services furnished 

under this contract.

(c) The rights and remedies of the judiciary provided for under this contract are in 

addition to any other rights and remedies provided by law.

(d) If the contractor is comprised of more than one legal entity, each such entity shall 

be jointly and severally liable hereunder.

(end)

Clause 5-55, Work Oversight in Architect-Engineer Contracts

Include the following clause as prescribed in § 530.70.60(e) (Clauses).

Work Oversight in Architect-Engineer Contracts (JAN 2003)

The extent and character of the work to be done by the contractor shall be 

subject to the general oversight, supervision, direction, control, and written 

approval of the contracting officer.

(end)

Clause 5-60, Requirements for Registration of Designers

Include the following clause as prescribed in § 530.70.60(f) (Clauses).

Requirements for Registration of Designers (AUG 2004)

Architects or engineers registered to practice in the particular professional 

field involved in a state, the District of Columbia, or an outlying area of the 

United States shall prepare or review and approve the design of 

architectural, structural, mechanical, electrical, civil, or other engineering 

features of the work.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

(end)

Clause 5-65, Subcontractors and Outside Associates and Consultants 

(Architect-Engineer Services)

Include the following clause as prescribed in § 530.70.60(g) (Clauses).

Subcontractors and Outside Associates and Consultants (ArchitectEngineer Services) (JAN 2003)

Any subcontractors and outside associates or consultants required by the 

contractor in connection with the services covered by the contract will be 

limited to individuals or firms that were specifically identified and agreed to 

during negotiations. The contractor shall obtain the contracting officer's 

written consent before making any substitution for these subcontractors, 

associates, or consultants.

(end)

Clause 5-70, Termination (Fixed-Price Architect-Engineer)

Include the following clause as prescribed in § 530.70.60(h) (Clauses).

Termination (Fixed-Price Architect-Engineer) (JAN 2003)

(a) The judiciary may terminate this contract in whole or, from time to time, in part, 

for the judiciary's convenience or because of the failure of the contractor to fulfill 

the contract obligations. The contracting officer will terminate by delivering to the 

contractor a Notice of Termination specifying the nature, extent, and effective 

date of the termination. Upon receipt of the notice, the contractor shall:

(1) immediately discontinue all services affected (unless the notice directs 

otherwise); and

(2) deliver to the contracting officer all data, drawings, specifications, reports, 

estimates, summaries, and other information and materials accumulated 

in performing this contract, whether completed or in process.

(b) If the termination is for the convenience of the judiciary, the contracting officer will 

make an equitable adjustment in the contract price but will allow no anticipated 

profit on unperformed services.

(c) If the termination is for failure of the contractor to fulfill the contract obligations, 

the judiciary may complete the work by contract or otherwise and the contractor 

shall be liable for any additional cost incurred by the judiciary.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

(d) If, after termination for failure to fulfill contract obligations, it is determined that 

the contractor had not failed, the rights and obligations of the parties will be the 

same as if the termination had been issued for the convenience of the judiciary.

(e) The rights and remedies of the judiciary provided in this clause are in addition to 

any other rights and remedies provided by law or under this contract.

(end)

Clause 5-75, Suspensions and Delays

Include the following clause as prescribed in § 530.70.60(i) (Clauses).

Suspensions and Delays (JAN 2003)

(a) If the performance of all or any part of the work of this contract is suspended, 

delayed, or interrupted by:

(1) an order or act of the contracting officer in administering this contract; or

(2) by a failure of the contracting officer to act within the time specified in this 

contract, or within a reasonable time if not specified, an adjustment will be 

made for any increase in the cost of performance of this contract caused 

by the delay or interruption (including the costs incurred during any 

suspension or interruption). An adjustment will also be made in the 

delivery or performance dates and any other contractual term or condition 

affected by the suspension, delay, or interruption. However, no 

adjustment may be made under this clause for any delay or interruption to 

the extent that performance would have been delayed or interrupted by 

any other cause, including the fault or negligence of the contractor, or for 

which an adjustment is provided or excluded under any other term or 

condition of this contract.

(b) A claim under this clause will not be allowed:

(1) for any costs incurred more than 20 days before the contractor has 

notified the contracting officer in writing of the act or failure to act involved; 

and

(2) unless the claim, in an amount stated, is asserted in writing as soon as 

practicable after the termination of the delay or interruption, but not later 

than the day of final payment under the contract.

(end)
Last revised (Transmittal 14-020) October 19, 2023

Provisions and Clauses (Chapter 6)

Clause 6-1, Performance Bond Requirements

Include the following clause as prescribed in § 610.20.30(a) (Clauses). If the penal 

amount is less than 100 percent of the contract price, modify the clause accordingly.

Performance Bond Requirements (APR 2011)

(a) Definitions. As used in this clause, “original contract price" means the award 

price of the contract; or for requirements contracts, the price payable for the 

estimated quantity; or, for indefinite-quantity contracts, the price payable for the 

specified minimum quantity. Original contract price does not include the price of 

any options, except those options exercised at the time of contract award.

(b) The contractor shall furnish a Form SF 1418, Performance Bond for the 

protection of the judiciary in an amount equal to ___ percent of the original 

contract price and a Form SF 1416, Payment Bond in an amount equal to ___ 

percent of the original contract price.

(c) The contractor shall furnish all executed bonds, including any necessary 

reinsurance agreements, to the contracting officer within ___ days, but in any 

event, before starting work.

(d) The judiciary may require additional performance and payment bond protection if 

the contract price is increased. The judiciary may secure the additional 

protection by directing the contractor to increase the penal amount of the existing 

bonds or to obtain additional bonds.

(e) The bonds shall be in the form of a firm commitment, supported by corporate 

sureties whose names are listed in Treasury Department Circular 570, individual 

sureties, or by other acceptable security such as postal money order, certified 

check, cashier's check, irrevocable letter of credit, or, in accordance with 

Treasury Department regulations, certain bonds or notes of the United States. 

Treasury Circular 570 is published in the Federal Register, or may be obtained 

from the:

U.S. Department of Treasury

Financial Management Service

Surety Bond Branch

401 14th Street, NW, 2nd Floor, West Wing

Washington, DC 20227

www.treas.gov

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

Alternate I (JAN 2003): As prescribed in § 610.20.30(b) (Clauses), 

substitute the following paragraphs (b) and (d) for paragraphs (b) and (d) 

of the basic clause. If the penal amount is less than 100 percent of the 

contract price, the clause will be modified accordingly.

(b) The contractor shall furnish a performance bond (Standard Form 1418) for the 

protection of the judiciary in an amount equal to ___ percent of the original 

contract price.

(d) The judiciary may require additional performance bond protection if the contract 

price is increased. The judiciary may secure the additional protection by 

directing the contractor to increase the penal amount of the existing bond or to 

obtain an additional bond.

Provision 6-5, Fidelity Bond Requirements

Include the following provision as prescribed in § 610.40 (Fidelity Bonds).

Fidelity Bond Requirements (APR 2013)

Any offeror awarded a contract as a result of this solicitation will be 

required to submit a fidelity bond in the penal amount of ___________, in 

a form acceptable to and within the time specified by the contracting 

officer. Corporate sureties must appear on the list in Treasury Circular 

570 and the amount of the bond may not exceed the underwriting limit 

stated for the surety on that list. Failure to submit an acceptable bond 

may be cause for termination of the contract for default.

(end)

Provision 6-10, Deposit of Assets Requirements

Include the following provision as prescribed in § 620.20.50(a) (Clauses/Provisions).

Deposit of Assets Requirements (APR 2013)

(a) Any offeror required to submit a surety bond as a result of this solicitation may 

instead deposit assets in a form acceptable to the judiciary in the amount of 

$___________ (contracting officer to fill-in amount).

(b) When assets are deposited, the offeror shall execute a bond in a form as 

specified in this solicitation. Failure to deposit assets acceptable to the judiciary 

may be cause for termination of the contract for default.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

Clause 6-15, Deposit of Assets Instead of Surety Bonds

Include the following clause as prescribed in § 620.20.50(b) (Clauses/Provisions).

Deposit of Assets Instead of Surety Bonds (JAN 2003)

(a) If the contractor has deposited assets instead of furnishing sureties for any bond 

required under this contract and the assets are in the form of checks, currency, 

or drafts, the contracting officer will hold the assets in an account for the

contractor's benefit.

(b) Upon contract completion, the contractor's funds will be returned as soon as 

possible, unless the contracting officer determines that part or all of the account 

is required to compensate the judiciary for costs it incurs as a result of the 

contractor's delay, default, or failure to perform. In such a case, the entire 

account will be available to compensate the judiciary.

(end)

Clause 6-20, Insurance – Work On or Within a Judiciary Facility

Include the following clause as prescribed in § 630.20.40(a) (Clauses).

Insurance – Work On or Within a Judiciary Facility (APR 2011)

(a) The contractor shall, at its own expense, provide and maintain during the entire 

performance of this contract, at least the following kinds and minimum amounts 

of insurance:

(1) Workman's Compensation and Employee's Liability Insurance

The contractor shall comply with applicable federal and state workers’ 

compensation and occupational disease statutes. If occupational 

diseases are not compensable under those statutes, they shall be covered 

under the employer’s liability section of the insurance policy. Employer’s 

liability coverage of at least $100,000 per incident is required.

(2) Automobile Liability Insurance

The contractor shall have coverage at a minimum of $200,000 per person; 

$500,000 per occurrence for bodily injury; and $20,000 per occurrence for 

property damage.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(3) General Liability Insurance

The contractor shall have coverage at a minimum of $200,000 per person 

and $500,000 per occurrence for death or bodily injury and $20,000 per 

occurrence for property damage.

(4) Self-Insurance

If the contractor has been approved to provide a qualified program of self 

insurance, the contractor must submit any proposed changes to the 

program to the contracting officer for approval.

(b) Prior to beginning performance under this contract, the contractor shall provide 

the insurance carrier certification of the above minimum amounts.

(c) The maintenance of insurance coverage as required by this clause is a 

continuing obligation, and the lapse or termination of insurance coverage without 

replacement coverage being obtained will be grounds for termination for default.

(d) The certification evidencing required insurance shall contain an endorsement to 

the effect that any cancellation or any material change adversely affecting the 

judiciary's interest shall not be effective:

(1) for such period as the laws of the state in which this contract is to be 

performed prescribe; or

(2) until 30 days after the insurer or the contractor gives written notice to the 

contracting officer, whichever period is longer.

(e) The contractor shall insert the substance of this clause, including this paragraph 

(e), in subcontracts under this contract that require work in a judiciary facility and 

shall require subcontractors to provide and maintain the required insurance. The 

contractor shall maintain a copy of all subcontractors' proofs of required 

insurance, and shall make copies available to the contracting officer upon 

request.

(end)

Clause 6-25, Insurance – Liability to Third Persons

Include the following clause as prescribed in § 630.20.40(b) (Clauses).

Insurance – Liability to Third Persons (APR 2013)

(a) (1) Except as provided in paragraph (a)(2) of this clause, the contractor shall 

provide and maintain workers' compensation, employer's liability, 

comprehensive general liability (bodily injury), comprehensive automobile 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

liability (bodily injury and property damage) insurance, and such other 

insurance as the contracting officer may require under this contract.

(2) The contractor may, with the written approval of the contracting officer, 

maintain a self-insurance program, provided that, with respect to workers' 

compensation, the contractor is qualified pursuant to statutory authority.

(3) All insurance required by this paragraph shall be in a form and amount 

and for those periods as the contracting officer may require or approve 

and with insurers approved in writing by the contracting officer.

(b) The contractor agrees to submit for the contracting officer's written approval, to 

the extent and in the manner required by the contracting officer, any other 

insurance that is maintained by the contractor in connection with the performance 

of this contract and for which the contractor seeks reimbursement.

(c) The contractor shall be reimbursed:

(1) for that portion:

(i) of the reasonable cost of insurance allocable to this contract; and

(ii) required or approved in writing under this clause; and

(2) for certain liabilities (and expenses incidental to such liabilities) to third 

persons not compensated by insurance or otherwise without regard to and 

as an exception to the limitation of cost or the limitation of funds clause of 

this contract. These liabilities shall arise out of the performance of this 

contract, whether or not caused by the negligence of the contractor or of 

the contractor's agents, servants, or employees, and shall be represented 

by final judgments or settlements approved in writing by the judiciary. 

These liabilities are for:

(i) loss of or damage to property (other than property owned, 

occupied, or used by the contractor, rented to the contractor, or in 

the care, custody, or control of the contractor); or

(ii) death or bodily injury.

(d) The judiciary's liability under paragraph (c) of this clause is subject to the 

availability of appropriated funds at the time a contingency occurs. Nothing in 

this contract will be construed as implying that the Congress will, at a later date, 

appropriate funds sufficient to meet deficiencies.

(e) The contractor will not be reimbursed for liabilities (and expenses incidental to 

such liabilities):
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(1) for which the contractor is otherwise responsible under the express terms 

of any clause incorporated in the contract, whether incorporated by 

reference or in full text;

(2) for which the contractor has failed to insure or to maintain insurance as 

required by the contracting officer; or

(3) that result from willful misconduct or lack of good faith on the part of any of 

the contractor's directors, officers, managers, superintendents, or other 

representatives who have supervision or direction of:

(i) all or substantially all of the contractor's business;

(ii) all or substantially all of the contractor's operations at any one plant 

or separate location in which this contract is being performed; or

(iii) a separate and complete major industrial operation in connection 

with the performance of this contract.

(f) The provisions of paragraph (e) of this clause will not restrict the right of the 

contractor to be reimbursed for the cost of insurance maintained by the 

contractor in connection with the performance of this contract, other than 

insurance required in accordance with this clause; provided, that such cost is 

allowable under Clause 4-60, Allowable Cost and Payment.

(g) If any suit or action is filed or any claim is made against the contractor, the cost 

and expense of which may be reimbursable to the contractor under this contract, 

and the risk of which is then uninsured or is insured for less than the amount 

claimed, the contractor shall:

(1) immediately notify the contracting officer and promptly furnish copies of all 

pertinent papers received;

(2) authorize judiciary representatives to collaborate with counsel for the 

insurance carrier in settling or defending the claim when the amount of the 

liability claimed exceeds the amount of coverage; and

(3) authorize judiciary representatives to settle or defend the claim and to 

represent the contractor in or to take charge of any litigation, if required by 

the judiciary, when the liability is not insured or covered by bond. The 

contractor may, at its own expense, be associated with the judiciary 

representatives in any such claim or litigation.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Clause 6-30, RESERVED

Clause 6-35, Errors and Omissions

Include the following clause as prescribed in § 630.40.50 (Clauses) and § 520.75(j) 

(Provisions and Clauses).

Errors and Omissions (APR 2013)

(a) The contractor warrants that it is insured for ___________ ($200,000, unless a 

greater amount is entered by the contracting officer) for errors and omissions per 

claim in an amount in excess of the minimum set forth in the schedule in the 

performance of this contract.

(b) Unless the contractor's policy is prepaid, noncancellable, and issued for a period 

at least equal to the term of this contract on an occurrence basis, the contractor 

shall have the policy amended to include substantially the following provision:

"It is a condition of this policy that the company furnish written notice to the 

____________(fill in the name of the finance office for the individual court 

unit, federal public defender organization, or the Administrative Office, 

whichever required the insurance) 30 days in advance of the effective date 

of any reduction in or cancellation of this policy."

(c) The contractor shall furnish a certificate of insurance or, if required by the 

contracting officer, true copies of liability policies and manually countersigned 

endorsements of any changes. Insurance shall be effective, and evidence of 

acceptable insurance furnished, before beginning performance under this 

contract. Evidence of renewal shall be furnished not later than five days before a 

policy expires.

(end)

Clause 6-40, Federal, State, and Local Taxes

Include the following clause as prescribed in § 640.30.70(a) (Clauses).

Federal, State, and Local Taxes (JAN 2003)

(a) Definitions.

"Contract Date" means the effective date of this contract or modification.

"All applicable federal, state, and local taxes and duties," as used in this clause, 

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 this 

contract.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

"After-Imposed Federal Tax," as used in this clause, means any new or 

increased federal excise tax or duty, or tax that was exempted on the contract 

date but whose exemption was later revoked or reduced during the contract 

period, on the transactions or property covered by this 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," as used in this clause, 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 

this 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.

“Local Taxes,” as used in this clause, means any taxes that a local governing 

organization (i.e., city or county) taxing authority is imposing and collecting on the 

transactions or property covered by this contract.

(b) The contract price includes all applicable federal, state, and local taxes and 

duties.

(c) 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.

(d) The contract price shall be decreased by the amount of any after-relieved federal 

tax.

(e) 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.

(f) No adjustment shall be made in the contract price under this clause unless the 

amount of the adjustment exceeds $250.

(g) 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.

(h) The judiciary 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.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

(end)

Clause 6-45, Federal, State, and Local Taxes (Noncompetitive Contract)

Include the following clause as prescribed in § 640.30.70(b) (Clauses).

Federal, State, and Local Taxes (Noncompetitive Contract) (JAN 

2003)

(a) Definitions.

"Contract Date," as used in this clause, means the effective date of this contract 

and, for any modification to this contract, the effective date of the modification.

"All Applicable Federal, State, and Local Taxes and Duties," as used in this 

clause, 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 

this contract.

"After-Imposed Tax," as used in this clause, means any new or increased 

federal, state, or local tax or duty, or tax that was excluded on the contract date 

but whose exclusion was later revoked or amount of exemption reduced during 

the contract period, other than an excepted tax, on the transactions or property 

covered by this 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.

"After-Relieved Tax," as used in this clause, means any amount of federal, state, 

or local tax or duty, other than an excepted tax, that would otherwise have been 

payable on the transactions or property covered by this 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.

"Excepted Tax," as used in this clause, means social security or other 

employment taxes, net income and franchise taxes, excess profits taxes, capital 

stock taxes, transportation taxes, unemployment compensation taxes, and 

property taxes. "Excepted tax" does not include gross income taxes levied on or 

measured by sales or receipts from sales, property taxes assessed on completed 

products covered by this contract, or any tax assessed on the contractor's 

possession of, interest in, or use of property, title to which is in the judiciary.

“Local Taxes,” as used in this clause, means any taxes that a local governing 

organization (i.e., city or county) taxing authority is imposing and collecting on the 

transactions or property covered by this contract.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(b) Unless otherwise provided in this contract, the contract price includes all 

applicable federal, state, and local taxes and duties.

(c) The contract price shall be increased by the amount of any after-imposed tax, or 

of any tax or duty specifically excluded from the contract price by a term or 

condition of this contract that the contractor is required to pay or bear, including 

any interest or penalty, if the contractor states in writing that the contract price 

does not include any contingency for such tax and if liability for such tax, interest, 

or penalty was not incurred through the contractor's fault, negligence, or failure to 

follow instructions of the contracting officer.

(d) The contract price shall be decreased by the amount of any after-relieved tax. 

The judiciary shall be entitled to interest received by the contractor incident to a 

refund of taxes to the extent that such interest was earned after the contractor 

was paid by the judiciary for such taxes. The judiciary is entitled to repayment of 

any penalty refunded to the contractor to the extent that the penalty was paid by 

the judiciary.

(e) The contract price shall be decreased by the amount of any federal, state, or 

local tax, other than an excepted tax, that was included in the contract price and 

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.

(f) No adjustment will be made in the contract price under this clause unless the 

amount of the adjustment exceeds $250.

(g) The contractor shall promptly notify the contracting officer of all matters relating 

to federal, state, and local taxes and duties 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. The contract price will be 

equitably adjusted to cover the costs of action taken by the contractor at the 

direction of the contracting officer, including any interest, penalty, and reasonable 

attorneys' fees.

(h) The judiciary will furnish evidence appropriate to establish exemption from any 

federal, state, or local tax when:

(1) the contractor requests such exemption and states in writing that it applies 

to a tax excluded from the contract price; and

(2) a reasonable basis exists to sustain the exemption.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

Provision 6-50, Representation of Rights in Data

Include the following provision as prescribed in § 650.65(a) (Clauses).

Representation of Rights in Data (APR 2013)

(a) This solicitation sets forth the judiciary’s known delivery requirements for data (as 

defined in Clause 6-60, Rights in Data – General). Any data delivered under the 

resulting contract will be subject to Clause 6-60, Rights in Data – General 

included in this contract. Under Clause 6-60, a contractor may withhold from 

delivery data that qualify as limited rights data or restricted computer software, 

and deliver form, fit, and function data instead. Clause 6-60 also may be used 

with its Alternates I and/or II to obtain delivery of limited rights data or restricted 

computer software, marked with limited rights or restricted rights notices, as 

appropriate.

(b) By completing the remainder of this paragraph, the offeror represents that it has 

reviewed the requirements for the delivery of technical data or computer software 

and states (offeror check appropriate block):

[ ] None of the data proposed for fulfilling the data delivery 

requirements qualifies as limited rights data or restricted computer 

software; or

[ ] Data proposed for fulfilling the data delivery requirements 

qualify as limited rights data or restricted computer software and 

are identified as follows:

_____________________________________________________

_____________________________________________________

_____________________________________________________

(c) Any identification of limited rights data or restricted computer software in the 

offeror’s response is not determinative of the status of the data should a contract 

be awarded to the offeror.

(end)

Clause 6-55, RESERVED

Clause 6-60, Rights in Data – General

Include the following clause as prescribed in § 650.65(b) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

Rights in Data – General (JUN 2012)

(a) Definitions. As used in this clause:

“Computer Database” or “Database” means a collection of recorded information 

in a form capable of, and for the purpose of, being stored in, processed, and 

operated on by a computer. The term does not include computer software.

“Computer software”:

(1) Means:

(i) Computer programs that comprise a series of instructions, rules, 

routines, or statements, regardless of the media in which recorded, 

that allow or cause a computer to perform a specific operation or 

series of operations; and

(ii) Recorded information comprising source code listings, design 

details, algorithms, processes, flow charts, formulas, and related 

material that would enable the computer program to be produced, 

created, or compiled.

(2) Does not include computer databases or computer software 

documentation.

“Computer Software Documentation” means owner’s manuals, user’s manuals, 

installation instructions, operating instructions, and other similar items, regardless 

of storage medium, that explain the capabilities of the computer software or 

provide instructions for using the software.

“Data” means recorded information, regardless of form or the media on which it 

may be recorded. The term includes technical data and computer software. The 

term does not include information incidental to contract administration, such as 

financial, administrative, cost or pricing, or management information.

“Form, Fit, and Function Data” means data relating to items, components, or 

processes that are sufficient to enable physical and functional interchangeability, 

and data identifying source, size, configuration, mating and attachment 

characteristics, functional characteristics, and performance requirements. For 

computer software it means data identifying source, functional characteristics, 

and performance requirements but specifically excludes the source code, 

algorithms, processes, formulas, and flow charts of the software.

“Limited Rights” means the rights of the judiciary in limited rights data as set forth 

in the Limited Rights Notice of paragraph (g)(3) if included in this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

“Limited Rights Data” means data, other than computer software, that embody 

trade secrets or are commercial or financial and confidential or privileged, to the 

extent that such data pertain to items, components, or processes developed at 

private expense, including minor modifications.

“Restricted Computer Software” means computer software developed at private 

expense and that is a trade secret, is commercial or financial and confidential or 

privileged, or is copyrighted computer software, including minor modifications of 

the computer software.

“Restricted Rights,” as used in this clause, means the rights of the judiciary in 

restricted computer software, as set forth in a Restricted Rights Notice of 

paragraph (g)(4) if included in this clause, or as otherwise may be provided in a 

collateral agreement incorporated in and made part of this contract, including 

minor modifications of such computer software.

“Technical Data” means recorded information (regardless of the form or method 

of the recording) of a scientific or technical nature (including computer databases 

and computer software documentation). This term does not include computer 

software or financial, administrative, cost or pricing, or management data or other 

information incidental to contract administration. The term includes recorded 

information of a scientific or technical nature that is included in computer 

databases (see 41 U.S.C. § 116).

“Unlimited Rights” means the rights of the judiciary to use, disclose, reproduce, 

prepare derivative works, distribute copies to the public, and perform publicly and 

display publicly, in any manner and for any purpose, and to have or permit others 

to do so.

(b) Allocation of Rights

(1) Except as provided in paragraph (c) of this clause, the judiciary shall have 

unlimited rights in:

(i) Data first produced in the performance of this contract;

(ii) Form, fit, and function data delivered under this contract;

(iii) Data delivered under this contract (except for restricted computer 

software) that constitute manuals or instructional and training 

material for installation, operation, or routine maintenance and 

repair of items, components, or processes delivered or furnished for 

use under this contract; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

(iv) All other data delivered under this contract unless provided 

otherwise for limited rights data or restricted computer software in 

accordance with paragraph (g) of this clause.

(2) The contractor shall have the right to:

(i) Assert copyright in data first produced in the performance of this 

contract to the extent provided in paragraph (c)(1) of this clause;

(ii) Use, release to others, reproduce, distribute, or publish any data 

first produced or specifically used by the contractor in the 

performance of this contract, unless provided otherwise in 

paragraph (d) of this clause;

(iii) Substantiate the use of, add, or correct limited rights, restricted 

rights, or copyright notices and to take other appropriate action, in 

accordance with paragraphs (e) and (f) of this clause; and

(iv) Protect from unauthorized disclosure and use those data that are 

limited rights data or restricted computer software to the extent 

provided in paragraph (g) of this clause.

(c) Copyright:

(1) Data First Produced in the Performance of this Contract

(i) Unless provided otherwise in paragraph (d) of this clause, the 

contractor may, without prior approval of the contracting officer, 

assert copyright in scientific and technical articles based on or 

containing data first produced in the performance of this contract 

and published in academic, technical or professional journals, 

symposia proceedings, or similar works. The prior, express written

permission of the contracting officer is required to assert copyright 

in all other data first produced in the performance of this contract.

(ii) When authorized to assert copyright to the data, the contractor 

shall affix the applicable copyright notices of 17 U.S.C. § 401 or 

§ 402, and an acknowledgment of judiciary sponsorship (including 

contract number).

(iii) For data other than computer software, the contractor grants to the 

judiciary, and others acting on its behalf, a paid-up, nonexclusive, 

irrevocable, worldwide license in such copyrighted data to 

reproduce, prepare derivative works, distribute copies to the public, 

and perform publicly and display publicly by or on behalf of the 

judiciary. For computer software, the contractor grants to the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

judiciary, and others acting on its behalf, a paid-up, nonexclusive, 

irrevocable, worldwide license in such copyrighted computer 

software to reproduce, prepare derivative works, and perform 

publicly and display publicly (but not to distribute copies to the 

public) by or on behalf of the judiciary.

(2) Data Not First Produced in the Performance of this Contract

The contractor shall not, without the prior written permission of the 

contracting officer, incorporate in data delivered under this contract any 

data not first produced in the performance of this contract unless the 

contractor:

(i) Identifies the data; and

(ii) Grants to the judiciary, or acquires on its behalf, a license of the 

same scope as set forth in paragraph (c)(1) of this clause or, if such 

data are restricted computer software, the judiciary shall acquire a 

copyright license as set forth in paragraph (g)(4) of this clause (if 

included in this contract) or as otherwise provided in a collateral 

agreement incorporated in or made part of this contract.

(3) Removal of Copyright Notices

The judiciary will not remove any authorized copyright notices placed on 

data pursuant to this paragraph (c), and will include such notices on all 

reproductions of the data.

(d) Release, Publication, and Use of Data

The contractor shall have the right to use, release to others, reproduce, 

distribute, or publish any data first produced or specifically used by the contractor 

in the performance of this contract, except:

(1) As prohibited by federal law or regulation (e.g., export control or national 

security laws or regulations);

(2) As expressly set forth in this contract; or

(3) If the contractor receives or is given access to data necessary for the 

performance of this contract that contain restrictive markings, the 

contractor shall treat the data in accordance with such markings unless 

specifically authorized otherwise in writing by the contracting officer.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(e) Unauthorized Marking of Data

(1) Notwithstanding any other provisions of this contract concerning 

inspection or acceptance, if any data delivered under this contract are 

marked with the notices specified in paragraph (g)(3) or (g) (4) if included 

in this clause, and use of the notices is not authorized by this clause, or if 

the data bears any other restrictive or limiting markings not authorized by 

this contract, the contracting officer may at any time either return the data 

to the contractor, or cancel or ignore the markings. The following 

procedures shall apply prior to canceling or ignoring the markings:

(i) The contracting officer will make written inquiry to the contractor 

affording the contractor 60 days from receipt of the inquiry to 

provide written justification to substantiate the propriety of the 

markings;

(ii) If the contractor fails to respond or fails to provide written 

justification to substantiate the propriety of the markings within the 

60-day period (or a longer time approved in writing by the 

contracting officer for good cause shown), the judiciary shall have 

the right to cancel or ignore the markings at any time after said 

period and the data will no longer be made subject to any 

disclosure prohibitions.

(iii) If the contractor provides written justification to substantiate the 

propriety of the markings within the period set in paragraph (e)(1)(i) 

of this clause, the contracting officer will consider such written 

justification and determine whether or not the markings are to be 

cancelled or ignored. If the contracting officer determines that the 

markings are authorized, the contractor will be so notified in writing. 

If the contracting officer determines, with concurrence of the 

judiciary Procurement Executive, that the markings are not 

authorized, the contracting officer will furnish the contractor a 

written determination, which determination will become the final 

agency decision regarding the appropriateness of the markings 

unless the contractor files suit in a court of competent jurisdiction 

within 90 days of receipt of the contracting officer’s decision. The 

judiciary will continue to abide by the markings under this 

paragraph (e)(1)(iii) until final resolution of the matter either by the 

contracting officer’s determination becoming final (in which instance 

the judiciary will thereafter have the right to cancel or ignore the 

markings at any time and the data will no longer be made subject to 

any disclosure prohibitions), or by final disposition of the matter by 

court decision if suit is filed.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

(2) Except to the extent the judiciary’s action occurs as the result of final 

disposition of the matter by a court of competent jurisdiction, the 

contractor is not precluded by paragraph (e) of the clause from bringing a 

claim, in accordance with the Disputes clause of this contract, that may 

arise as the result of the judiciary removing or ignoring authorized 

markings on data delivered under this contract.

(f) Omitted or Incorrect Markings

(1) Data delivered to the judiciary without any restrictive markings shall be 

deemed to have been furnished with unlimited rights. The judiciary is not 

liable for the disclosure, use, or reproduction of such data.

(2) If the unmarked data has not been disclosed without restriction outside the 

judiciary, the contractor may request, within 6 months (or a longer time 

approved by the contracting officer in writing for good cause shown) after 

delivery of the data, permission to have authorized notices placed on the 

data at the contractor’s expense. The contracting officer may agree to do 

so if the contractor:

(i) Identifies the data to which the omitted notice is to be applied;

(ii) Demonstrates that the omission of the notice was inadvertent;

(iii) Establishes that the proposed notice is authorized; and

(iv) Acknowledges that the judiciary has no liability for the disclosure, 

use, or reproduction of any data made prior to the addition of the 

notice or resulting from the omission of the notice.

(3) If data has been marked with an incorrect notice, the contracting officer 

may:

(i) Permit correction of the notice at the contractor’s expense if the 

contractor identifies the data and demonstrates that the correct 

notice is authorized; or

(ii) Correct any incorrect notices.

(g) Protection of Limited Rights Data and Restricted Computer Software

(1) The contractor may withhold from delivery qualifying limited rights data or 

restricted computer software that are not data identified in paragraphs 

(b)(1)(i), (ii), and (iii) of this clause. As a condition to this withholding, the 

contractor shall:

(i) Identify the data being withheld; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

(ii) Furnish form, fit, and function data instead.

(2) Limited rights data that are formatted as a computer database for delivery 

to the judiciary shall be treated as limited rights data and not restricted 

computer software.

(h) Subcontracting

The contractor shall obtain from its subcontractors all data and rights therein 

necessary to fulfill the contractor’s obligations to the judiciary under this contract. 

If a subcontractor refuses to accept terms affording the judiciary those rights, the 

contractor shall promptly notify the contracting officer of the refusal and shall not 

proceed with the subcontract award without authorization in writing from the 

contracting officer.

(i) Relationship to Patents or Other Rights

Nothing contained in this clause shall imply a license to the judiciary under any 

patent or be construed as affecting the scope of any license or other right 

otherwise granted to the judiciary.

(end)

Alternate I (JAN 2010): As prescribed in § 650.65(c) (Clauses), insert the following 

paragraph (g)(3) in the basic clause:

(g) (3) Notwithstanding paragraph (g)(1) of this clause, the contract may identify 

and specify the delivery of limited rights data, or the contracting officer 

may require by written request the delivery of limited rights data that has 

been withheld or would otherwise be entitled to be withheld. If delivery of 

that data is required, the contractor shall affix the following “Limited Rights 

Notice” to the data and the judiciary will treat the data, subject to the 

provisions of paragraphs (e) and (f) of this clause, in accordance with the 

notice:

Limited Rights Notice (JAN 2010)

(a) These data are submitted with limited rights under judiciary Contract No. 

_____ (and subcontract ______, if appropriate). These data may be 

reproduced and used by the judiciary with the express limitation that they 

will not, without written permission of the contractor, be used for purposes 

of manufacture nor disclosed outside the judiciary; except that the 

judiciary may disclose these data outside the judiciary for the following 

purposes, if any; provided that the judiciary makes such disclosure subject 

to prohibition against further use and disclosure: [COs may list additional 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

purposes as set forth in § 650.65(c) or state there are no additional 

purposes.]

(b) This notice shall be marked on any reproduction of these data, in whole or 

in part.

(End of notice)

Alternate II (APR 2013): As prescribed in § 650.65(d) (Clauses), insert the following 

paragraph (g)(4) in the basic clause:

(g) (4) (i) Notwithstanding paragraph (g)(1) of this clause, the contract may 

identify and specify the delivery of restricted computer software, or 

the contracting officer may require by written request the delivery of 

restricted computer software that has been withheld or would 

otherwise be entitled to be withheld. If delivery of that computer 

software is required, the contractor shall affix the following 

“Restricted Rights Notice” to the computer software and the 

judiciary will treat the computer software, subject to paragraphs (e) 

and (f) of this clause, in accordance with the notice:

Restricted Rights Notice (JAN 2010)

(a) This computer software is submitted with restricted rights under judiciary 

Contract No. _______ (and subcontract ________, if appropriate). It may 

not be used, reproduced, or disclosed by the judiciary except as provided 

in paragraph (b) of this notice or as otherwise expressly stated in the 

contract.

(b) This computer software may be:

(1) Used or copied for use with the computer(s) for which it was 

acquired, including use at any judiciary facility to which the 

computer(s) may be transferred;

(2) Used or copied for use with a backup computer if any computer for 

which it was acquired is inoperative;

(3) Reproduced for safekeeping (archives) or backup purposes;

(4) Modified, adapted, or combined with other computer software, 

provided that the modified, adapted, or combined portions of the 

derivative software incorporating any of the delivered, restricted 

computer software shall be subject to the same restricted rights;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

(5) Disclosed to and reproduced for use by support service contractors 

or their subcontractors in accordance with paragraphs (b)(1) 

through (4) of this notice; and

(6) Used or copied for use with a replacement computer.

(c) Notwithstanding the foregoing, if this computer software is copyrighted 

computer software, it is licensed to the judiciary with the minimum rights 

set forth in paragraph (b) of this notice.

(d) Any other rights or limitations regarding the use, duplication, or disclosure 

of this computer software are to be expressly stated in, or incorporated in, 

the contract.

(e) This notice shall be marked on any reproduction of this computer 

software, in whole or in part.

(End of notice)

(ii) Where it is impractical to include the Restricted Rights Notice on 

restricted computer software, the following short-form notice may 

be used instead:

Restricted Rights Notice Short Form (JAN 2010)

Use, reproduction, or disclosure is subject to 

restrictions set forth in Contract No. _______ (and 

subcontract, if appropriate) with ________ (name of 

contractor and subcontractor).

(End of notice)

(iii) If restricted computer software is delivered with the copyright notice 

of 17 U.S.C. § 401, it will be presumed to be licensed to the 

judiciary without disclosure prohibitions, with the minimum rights set 

forth in paragraph (b) of this clause.

Clause 6-65, Rights in Data – Special Works

Include the following clause as prescribed in § 650.65(e) (Clauses).

Rights in Data – Special Works (JAN 2010)

(a) Definitions. As used in this clause:

“Data” means recorded information, regardless of form or the media on which it 

may be recorded. The term includes technical data and computer software. The 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

term does not include information incidental to contract administration, such as 

financial, administrative, cost or pricing, or management information.

“Unlimited Rights” means the rights of the judiciary to use, disclose, reproduce, 

prepare derivative works, distribute copies to the public, and perform publicly and 

display publicly, in any manner and for any purpose, and to have or permit others 

to do so.

(b) Allocation of Rights

(1) The judiciary shall have:

(i) Unlimited rights in all data delivered under this contract, and in all 

data first produced in the performance of this contract, except as 

provided in paragraph (c) of this clause;

(ii) The right to limit assertion of copyright in data first produced in the 

performance of this contract, and to obtain assignment of copyright 

in that data, in accordance with paragraph (c)(1) of this clause;

(iii) The right to limit the release and use of certain data in accordance 

with paragraph (d) of this clause.

(2) The contractor shall have, to the extent permission is granted in 

accordance with paragraph (c)(1) of this clause, the right to assert claim to 

copyright subsisting in data first produced in the performance of this 

contract.

(c) Copyright:

(1) Data first produced in the performance of this contract.

(i) The contractor shall not assert or authorize others to assert any 

claim to copyright subsisting in any data first produced in the 

performance of this contract without prior written permission of the 

contracting officer. When copyright is asserted, the contractor shall 

affix the appropriate copyright notice of 17 U.S.C. § 401 or § 402 

and acknowledgment of judiciary sponsorship (including contract 

number) to the data when delivered to the judiciary, as well as 

when the data are published or deposited for registration as a 

published work in the U.S. Copyright Office. The contractor grants 

to the judiciary, and others acting on its behalf, a paid-up, 

nonexclusive, irrevocable, worldwide license for all delivered data 

to reproduce, prepare derivative works, distribute copies to the 

public, and perform publicly and display publicly, by or on behalf of 

the judiciary.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(ii) If the judiciary desires to obtain copyright in data first produced in 

the performance of this contract and permission has not been 

granted as set forth in paragraph (c)(1)(i) of this clause, the 

contracting officer shall direct the contractor to assign (with or 

without registration), or obtain the assignment of, the copyright to 

the judiciary or its designated assignee.

(2) Data not first produced in the performance of this contract. The contractor 

shall not, without prior written permission of the contracting officer, 

incorporate in data delivered under this contract any data not first 

produced in the performance of this contract and that contain the copyright 

notice of 17 U.S.C. § 401 or § 402, unless the contractor identifies such 

data and grants to the judiciary, or acquires on its behalf, a license of the 

same scope as set forth in paragraph (c)(1) of this clause.

(d) Release and Use Restrictions

Except as otherwise specifically provided for in this contract, the contractor shall 

not use, release, reproduce, distribute, or publish any data first produced in the 

performance of this contract, nor authorize others to do so, without written 

permission of the contracting officer.

(e) Indemnity

The contractor shall indemnify the judiciary and its officers, agents, and 

employees acting for the judiciary against any liability, including costs and 

expenses, incurred as the result of the violation of trade secrets, copyrights, or 

right of privacy or publicity, arising out of the creation, delivery, publication, or 

use of any data furnished under this contract; or any libelous or other unlawful 

matter contained in such data. The provisions of this paragraph do not apply 

unless the judiciary provides notice to the contractor as soon as practicable of 

any claim or suit, affords the contractor an opportunity under applicable laws, 

rules, or regulations to participate in the defense of the claim or suit, and obtains 

the contractor’s consent to the settlement of any claim or suit other than as 

required by final decree of a court of competent jurisdiction; and these provisions 

do not apply to material furnished to the contractor by the judiciary and 

incorporated in data to which this clause applies.

(end)

Clause 6-70, Work for Hire

Include the following clause as prescribed in § 520.75(i) (Provisions and Clauses) and 

§ 650.65(f) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

Work for Hire (JAN 2003)

The contractor agrees that the work performed under this contract is a 

work made for hire. The contractor further understands that as such, the 

work provided under the contract, including all materials, data, and other 

information developed, delivered, furnished, or otherwise called for under 

the contract, are works of the United States and are therefore in the public 

domain. If, for some reason, it is later determined that this is not a work 

made for hire, the contractor agrees to assign all rights, title, and interest 

in this program/project/material (whichever is applicable) to the federal 

judiciary.

(end)

Clause 6-75, Rights to Data in an Offer

Include the following clause as prescribed in § 650.65(g) (Clauses).

Rights to Data in an Offer (APR 2013)

Except for data contained on pages_____, it is agreed that as a condition 

of award of this contract, and notwithstanding the conditions of any notice 

appearing thereon, the judiciary will have unlimited rights (as defined in 

Clause 6-60, Rights in Data – General) in and to the technical data 

contained in the offer dated ______, upon which this contract is based.

(end)

Clause 6-80, Rights in Data – Existing Works

Include the following clause as prescribed in § 650.65(h) (Clauses).

Rights in Data – Existing Works (JAN 2010)

(a) Except as otherwise provided in this contract, the contractor grants to the 

judiciary, and others acting on its behalf, a paid-up nonexclusive, irrevocable, 

worldwide license to reproduce, prepare derivative works, and perform publicly 

and display publicly, by or on behalf of the judiciary, for all the material or subject 

matter called for under this contract, or for which this clause is specifically made 

applicable.

(b) The contractor shall indemnify the judiciary and its officers, agents, and 

employees acting for the judiciary against any liability, including costs and 

expenses, incurred as the result of (1) the violation of trade secrets, copyrights, 

or right of privacy or publicity, arising out of the creation, delivery, publication or 

use of any data furnished under this contract; or (2) any libelous or other unlawful 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

matter contained in such data. The provisions of this paragraph do not apply 

unless the judiciary provides notice to the contractor as soon as practicable of 

any claim or suit, affords the contractor an opportunity under applicable laws, 

rules, or regulations to participate in the defense of the claim or suit, and obtains 

the contractor’s consent to the settlement of any claim or suit other than as 

required by final decree of a court of competent jurisdiction; and do not apply to 

material furnished to the contractor by the judiciary and incorporated in data to 

which this clause applies.

(end)

Clause 6-85, Commercial Computer Software License

Include the following clause as prescribed in § 650.65(i) (Clauses).

Commercial Computer Software License (APR 2013)

(a) Notwithstanding any contrary provisions contained in the contractor’s standard 

commercial license or lease agreement, the contractor agrees that the judiciary 

will have the rights that are set forth in paragraph (b) of this clause to use, 

duplicate or disclose any commercial computer software delivered under this 

contract. The terms and provisions of this contract shall comply with federal laws 

and Volume 14 of the Guide to Judiciary Policy.

(b) (1) The commercial computer software delivered under this contract may not 

be used, reproduced, or disclosed by the judiciary except as provided in 

paragraph (b)(2) of this clause or as expressly stated otherwise in this 

contract.

(2) The commercial computer software may be:

(i) Used or copied for use with the computer(s) for which it was 

acquired, including use at any judiciary facility to which the 

computer(s) may be transferred;

(ii) Used or copied for use with a backup computer if any computer for 

which it was acquired is inoperative;

(iii) Reproduced for safekeeping (archives) or backup purposes;

(iv) Modified, adapted, or combined with other computer software, 

provided that the modified, adapted, or combined portions of the 

derivative software incorporating any of the delivered, commercial 

computer software shall be subject to same restrictions set forth in 

this contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(v) Disclosed to and reproduced for use by support service contractors 

or their subcontractors, subject to the same restrictions set forth in 

this contract; and

(vi) Used or copied for use with a replacement computer.

(3) If the commercial computer software is otherwise available without 

disclosure restrictions, the contractor licenses it to the judiciary without 

disclosure restrictions.

(c) The contractor shall affix a notice substantially as follows to any commercial

computer software delivered under this contract:

Notice: Notwithstanding any other lease or license agreement that may 

pertain to, or accompany the delivery of, this computer software, the rights 

of the judiciary regarding its use, reproduction and disclosure are as set 

forth in judiciary Contract No.___________________________.

(end)

Clause 6-90, Notice and Assistance Regarding Patent and Copyright 

Infringement

Include the following clause as prescribed in § 660.20(a) (Clauses).

Notice and Assistance Regarding Patent and Copyright Infringement 

(APR 2010)

(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 

the performance of this contract of which the contractor has knowledge.

(b) In the event of any claim or suit against the judiciary on account of any alleged 

patent or copyright infringement arising out of the performance of this contract or 

out of the use of any supplies furnished or work or services performed under this 

contract, the contractor shall furnish to the judiciary, when requested by the 

contracting officer, all evidence and information in the contractor’s possession 

pertaining to such claim or suit. Such evidence and information shall be 

furnished at the expense of the judiciary except where the contractor has agreed 

to indemnify the judiciary.

(c) The contractor shall include the substance of this clause, including this 

paragraph (c), in all subcontracts that are expected to exceed the judiciary small 

purchase threshold.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

Clause 6-95, Patent Indemnity

Include the following clause as prescribed in § 660.20(b) (Clauses).

Patent Indemnity (JAN 2010)

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

employees against liability, including costs, for infringement of any United States 

patent (except a patent issued upon an application that 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, the performance of 

services, or the construction, alteration, modification, or repair of real property 

(hereinafter referred to as “construction work”) under this contract, or out of the 

use or disposal by or for the account of the judiciary of such supplies or 

construction work.

(b) This indemnity shall not apply unless the contractor shall have been informed as 

soon as practicable by the judiciary 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 its defense. Further, this 

indemnity shall not apply to:

(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;

(2) An infringement resulting from addition to or change in supplies or 

components furnished or construction work performed that was made 

subsequent to delivery or performance; or

(3) A claimed infringement that is unreasonably settled without the consent of 

the contractor, unless required by final decree of a court of competent 

jurisdiction.

(end)

Alternate I (JAN 2010): As prescribed in § 660.20(c) (Clauses), add the 

following paragraph (c) to the basic clause:

(c) This patent indemnification shall not apply to the following items:

__________________________________________________

[Contracting Officer list and/or identify the items to be excluded from this indemnity.]
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

Alternate II (JAN 2010): As prescribed in § 660.20(d) (Clauses), add the 

following paragraph (c) to the basic clause:

(c) This patent indemnification shall cover the following items:

__________________________________________________

[List and/or identify the items to be included under this indemnity.]

Alternate III (JAN 2010): As prescribed in § 660.20(e) (Clauses), add the 

following paragraph (c) to the basic clause:

(c) As to subcontracts at any tier for communication service, this clause shall apply 

only to individual communication service authorizations over the simplified 

acquisition threshold issued under this contract and covering those 

communications services and facilities:

(1) That are or have been sold or offered for sale by the contractor to the 

public,

(2) That can be provided over commercially available equipment, or

(3) That involve relatively minor modifications.

Clause 6-100, Waiver of Indemnity

Include the following clause as prescribed in § 660.20(f) (Clauses).

Waiver of Indemnity (JAN 2010)

Any provision or clause of this contract to the contrary notwithstanding, the 

judiciary hereby authorizes and consents to the use and manufacture, 

solely in performing this contract, of any invention covered by the United 

States patents identified below and waives indemnification by the 

contractor with respect to such patents:

__________________________________________________

[Contracting Officer identify the patents by number or by other means if 

more appropriate.]

(end)

Clause 6-105, California E-Waste Fee

Include the following clause as prescribed in § 640.30.70(c) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

California E-Waste Fee (APR 2013)

(a) The State of California enacted the Electronic Waste Recycling Act of 2003 (as 

amended) establishing a statewide program to promote and fund the collection 

and recycling for “covered electronic devices”. The Act, among other provisions, 

establishes a charge applicable to purchase of such devices that will cover the 

cost of the ultimate disposal of such devices (e-waste recycling fee).

(b) The U. S. Government Accountability Office (GAO) has analyzed the California 

E-Waste Recycling fee and determined it to be a state tax from which the federal 

government is exempt in Administrative Office of the U.S. Courts – California EWaste Recycling Fee, B-320998, May 4, 2011, and has so informed the State of 

California. The government, including the judiciary, may not pay this fee.

(c) The contractor shall not charge or attempt to collect the California E-Waste 

Recycling Fee under this contract.

(end)

Clause 6-110, Deferred Ordering of Technical Data or Computer Software

Include the following clause as prescribed in § 650.65(j) (Clauses).

Deferred Ordering of Technical Data or Computer Software (JUN 

2014)

In addition to technical data or computer software specified elsewhere in 

this contract to be delivered hereunder, the government may, at any time 

during the performance of this contract or within a period of three (3) years 

after acceptance of all items (other than technical data or computer 

software) to be delivered under this contract or the termination of this 

contract, order any technical data or computer software generated in the 

performance of this contract or any subcontract hereunder. When the 

technical data or computer software is ordered, the Contractor shall be 

compensated for converting the data or computer software into the 

prescribed form, for reproduction and delivery. The obligation to deliver 

the technical data of a subcontractor and pertaining to an item obtained 

from him shall expire three (3) years after the date the Contractor accepts 

the last delivery of that item from that subcontractor under this contract. 

The government's rights to use said data or computer software shall be 

pursuant to the "Rights in Data" clause of this contract.

(end)
Last revised (Transmittal 14-020) October 19, 2023

Provisions and Clauses (Chapter 7)

Clause 7-1, Contract Administration

Include the following clause as prescribed in § 715.55(a) (Clauses/Provisions).

Contract Administration (JAN 2003)

(a) The contracting officer and contracting officer’s representative for the contract will 

be the judiciary’s primary points of contact during the performance of the 

contract. The contracting officer responsible for the administration of this 

contract will provide a cover letter providing the contracting officer’s name, 

business address, e-mail address, and telephone number. Written 

communications from the contractor shall make reference to the contract number 

and shall be mailed to the address provided in the cover letter. Communications 

pertaining to contract administration matters will be addressed to the contracting 

officer.

(b) Notwithstanding the contractor’s responsibility for total management during the 

performance of this contract, the administration of this contract will require the 

maximum coordination between the judiciary and the contractor. All contract 

administration will be effected by the contracting officer except as may be 

redelegated. In no event will any understanding or agreement, contract 

modification, change order, or other matter in deviation from the terms of this 

contract between the contractor and a person other than the contracting officer 

be effective or binding upon the judiciary. All such actions shall be formalized by 

a proper contractual document executed by the contracting officer.

(end)

Clause 7-5, Contracting Officer’s Representative

Include the following clause as prescribed in § 715.55(b) (Clauses/Provisions).

Contracting Officer’s Representative (APR 2013)

(a) Upon award, a contracting officer’s representative (COR) may be appointed by 

the contracting officer. The COR will be responsible for coordinating the 

technical aspects of this contract and inspecting products/services furnished 

hereunder; however, the COR will not be authorized to change any terms and 

conditions of the resultant contract, including price.

(b) The COR, if appointed, may be assigned one or more of the following 

responsibilities:

(1) monitoring the contractor's performance under the contract to ensure 

compliance with technical requirements of the contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

(2) notifying the contracting officer immediately if performance is not 

proceeding satisfactorily;

(3) ensuring that changes in work under the contract are not initiated before 

written authorization or modification is issued by the contracting officer;

(4) providing the contracting officer a written request and justification for 

changes;

(5) providing interpretations relative to the meaning of technical specifications 

and technical advice relative to contracting officer’s written approvals, and

(6) providing general technical guidance to the contractor within the scope of 

the contract and without constituting a change to the contract.

(end)

Clause 7-10, Contractor Representative

Include the following clause as prescribed in § 715.55(c) (Clauses/Provisions).

Contractor Representative (JAN 2003)

(a) The contractor’s representative to be contacted for all contract administration 

matters is as follows (contractor complete the information):

Name:

Address:

Telephone:

E-mail:

Fax:

(b) The contractor’s representative shall act as the central point of contact with the 

judiciary, shall be responsible for all contract administration issues relative to this 

contract, and shall have full authority to act for and legally bind the contractor on 

all such issues.

(end)

Clause 7-15, Observance of Regulations/Standards of Conduct

Include the following clause as prescribed in § 715.55(d) (Clauses/Provisions).

Observance of Regulations/Standards of Conduct (JAN 2003)

(a) When contractor personnel are performing contract work at a judiciary facility, 

they shall comply with all rules and regulations of the facility, including, but not 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

limited to, rules and regulations governing security, controlled access, personnel 

clearances and conduct with respect to health and safety and to property at the 

site, regardless of whether or not title to such property is vested in the judiciary. 

The facilities to which the contractor has access belong to the judiciary and will 

not at any time be considered “Judiciary Property” furnished to the contractor.

(b) The contractor and its employees shall only conduct business covered by the 

contract during periods paid for by the judiciary, and will not conduct any other 

business on judiciary premises.

(c) The contractor shall be responsible for maintaining satisfactory standards of 

employee competency, conduct, appearance and integrity. It is the contractor’s 

responsibility to take disciplinary action with respect to its employees as may be 

necessary. The contractor is also responsible for ensuring that its employees do 

not disturb papers on desks, open desk drawers or cabinets, or use judiciary 

property (such as, but not limited to, telephones or copiers) except as authorized.

(end)

Clause 7-20, Security Requirements

Include the following clause as prescribed in § 330.10.30(l) (Provisions and Clauses)

and § 715.55(e) (Clauses/Provisions).

Security Requirements (APR 2013)

(a) Definitions. As used in this clause:

"Access" means physical entry into, and to the extent authorized, mobility within, 

a judiciary facility.

"Contractor employee" means an employee of the prime contractor or of any 

subcontractor, affiliate, partner, joint venture, or team members with which the 

contractor is associated. It also includes consultants engaged by any of those 

entities.

"Facility" and "judiciary facility" mean buildings, including areas within buildings, 

owned, leased, shared, occupied, or otherwise controlled by the judiciary.

“Judiciary IT resources” include, but are not limited to, computer equipment, 

networking equipment, telecommunications equipment, cabling, network drives, 

computer drives, network software, computer software, software programs, 

intranet sites, and internet sites.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(b) Requirements.

Contractor employees working on this contract must complete such forms as 

may be necessary for security purposes or other reasons. Completed forms 

shall be submitted as directed by the Contracting Officer’s Representative 

(COR). Depending upon the level of access required to judiciary facilities or IT 

resources for performance of the work, contractor employees may be subject to 

any of the following types of security checks:

Fingerprint Check

Credit Check

National Agency Check with Inquires (NACI)

National Agency Check with Inquiries and Credit (NACIC)

National Agency Check with Law and Credit (NACLC)

Single Scope Background Investigation (SSBI)

Single Scope Background Investigation – Periodic Reinvestigation 

(SSBI-PR)

Public Trust Special Background Investigation (PTSBI)

Citizenship and Immigration Services (CIS) Check

Contractor employees visiting court sites to provide support covered under this 

contract may be subjected to additional FBI screening and U.S. Marshal 

inspection.

(c) Exemption.

Affected contractor employees who have had a Federal background investigation 

without a subsequent break in Federal employment or Federal contract service 

exceeding two (2) years may be exempt from the investigation requirements of 

this clause subject to verification of the previous investigation. For each such 

employee, the contractor shall submit the following information: employee's full 

name, Social Security Number, and place and date of birth.

(d) Facility Access Cards (FAC).

The contractor shall be responsible for all Facility Access Cards or other judiciary 

identification cards issued to the contractor's employees and shall immediately 

notify the COR if any Facility Access Card(s) cannot be accounted for. The 

contractor shall notify the COR immediately whenever any contractor employee 

no longer has a need for his/her judiciary-issued FAC (e.g., employee terminates 

employment with the contractor, employee's duties no longer require access to 

judiciary facilities). The COR will instruct the contractor as to how to return the 

FAC. Upon expiration of this contract, the COR will instruct the contractor as to 

how to return all judiciary-issued FACs not previously returned. The contractor 

shall not return FACs to any person other than the individual(s) named by the 

COR.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(e) Control of access.

The judiciary shall have and exercise full and complete control over granting, 

denying, withholding, and terminating access of contractor employees to judiciary 

facilities and IT resources. The COR will notify the contractor immediately when 

the judiciary has determined that an employee is unsuitable or unfit to be 

permitted access to a judiciary facility following the completion of any of the 

security checks/investigations listed in (b) above, or as a result of new 

information obtained at any time during the contractor’s performance. The 

contractor shall immediately notify such employee that he/she no longer has 

access to any judiciary facility and/or judiciary IT resources, remove the 

employee from any such facility that he/she may be in, and provide a suitable 

replacement who must comply with the requirements of this and other applicable 

clauses. In addition, the contracting officer may require the contractor to prohibit 

individuals from access to judiciary facilities or IT resources if the judiciary deems 

their initial or continued access contrary to the public interest for any reason, 

including, but not limited to, carelessness, insubordination, incompetence, or 

security concerns.

(f) The contractor shall include the substance of this clause in all subcontracts at 

any tier where the subcontractor may be required to have routine physical access 

to a judiciary facility or routine access to a judiciary IT resource.

(g) The judiciary reserves the right to refuse to grant facility access for any 

contractor employee who has been convicted of a felony.

(end)

Clause 7-25, Indemnification

Include the following clause as prescribed in § 715.55(f) (Clauses/Provisions).

Indemnification (AUG 2004)

(a) The contractor assumes full responsibility for and shall indemnify the judiciary 

against any and all losses or damage of whatsoever kind and nature to any and 

all judiciary property, including any equipment, products, accessories, or parts 

furnished, while in its custody and care for storage, repairs, or service to be 

performed under the terms of this contract, resulting in whole or in part from the 

negligent acts or omissions of the contractor, any subcontractor, or any 

employee, agent or representative of the contractor or subcontractor.

(b) If due to the fault, negligent acts (whether of commission or omission) and/or 

dishonesty of the contractor or its employees, any judiciary-owned or controlled 

property is lost or damaged as a result of the contractor's performance of this 

contract, the contractor shall be responsible to the judiciary for such loss or 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

damage, and the judiciary, at its option, may, in lieu of requiring reimbursement 

therefor, require the contractor to replace at its own expense, all property lost or 

damaged.

(c) Hold Harmless and Indemnification Agreement

The contractor shall save and hold harmless and indemnify the judiciary against 

any and all liability claims and cost of whatsoever kind and nature for injury to or 

death of any person or persons and for loss or damage to any contractor 

property or property owned by a third party occurring in connection with or in any 

way incident to or arising out of the occupancy, use, service, operation, or 

performance of work under the terms of this contract, resulting in whole or in part 

from the acts or omissions of the contractor, any subcontractor, or any employee, 

agent, or representative of the contractor or subcontractor.

(d) The contractor shall indemnify and hold the judiciary, its employees, and others 

acting on its behalf harmless against any and all loss, liability, or damage arising 

out of the negligence, failure to act, fraud, embezzlement, or other misconduct by 

the contractor, its employees, subcontractors, agents, or representatives of the 

contractor or subcontractor.

(e) Judiciary's Right of Recovery

Nothing in the above paragraphs will be considered to preclude the judiciary from 

receiving the benefits of any insurance/bonds the contractor may carry which 

provides for the indemnification of any loss or destruction of, or damages to, 

property in the custody and care of the contractor where such loss, destruction or 

damage is to judiciary property. The contractor shall do nothing to prejudice the 

judiciary's right to recover against third parties for any loss, destruction of, or 

damage to, judiciary property, and upon the request of the contracting officer will, 

at the judiciary's expense, furnish to the judiciary all reasonable assistance and 

cooperation (including assistance in the prosecution of suit and the execution of

instruments of assignment in favor of the judiciary) in obtaining recovery.

(f) Judiciary Liability

The judiciary will not be liable for any injury to the contractor’s personnel or 

damage to the contractor’s property unless such injury or damage is due to

negligence on the part of the judiciary and is recoverable under the Federal Torts 

Claims Act, or pursuant to other statutory authority applicable to the judiciary.

(end)

Clause 7-30, Public Use of the Name of the Federal Judiciary

Include the following clause as prescribed in § 715.55(g) (Clauses/Provisions).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Public Use of the Name of the Federal Judiciary (JUN 2014)

(a) The contractor shall not refer to the judiciary, or to any court or other 

organizational entities existing thereunder (hereinafter referred to as "the 

judiciary"), in advertising, news releases, brochures, catalogs, television and 

radio advertising, letters of reference, websites, or any other media used 

generally by the vendor in its commercial marketing initiatives, in such a way that 

it represents or implies that the judiciary prefers or endorses the products or 

services offered by the contractor. This provision will not be construed as limiting 

the contractor's ability to refer to the judiciary as one of its customers when 

providing past performance information as part of a proposal submission, as 

opposed to general-public marketing.

(b) No public release of information pertaining to this contract will be made without 

prior judiciary written approval, as appropriate, and then only with written 

approval of the contracting officer.

(end)

Clause 7-35, Disclosure or Use of Information

Include the following clause as prescribed in § 715.55(h) (Clauses/Provisions).

Disclosure or Use of Information (APR 2013)

(a) Judiciary information made available to the contractor for the performance or 

administration of this contract shall be used only for those purposes and shall not 

be used in any other way without the written agreement of the contracting officer. 

This clause takes precedence over and is an explicit limitation to the rights 

enumerated in section (d)(2) of Clause 6-60, Rights in Data – General.

(b) To the extent the information is otherwise publicly available, it is public 

information and is not restricted by operation of this clause. However, if public 

information is provided to the contractor for use in performance or administration 

of this contract in a media, format, or otherwise in a manner in which it is not 

available the public, such information may not be used for any other purpose by 

the contractor except with the written permission of the contracting officer. If the 

contractor is uncertain about the availability or proposed use of information 

provided for the performance or administration of this contract, the contractor 

shall consult with the contracting officer regarding use of that information for 

other purposes.

(c) The contractor agrees to assume responsibility for protecting the confidentiality of 

judiciary records which are not public information. Such information may include, 

but is not limited to, all employee data and any written and oral information of a 

personal nature. Such information is to be safeguarded to ensure that it is not 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

improperly disclosed. Each officer or employee of the contractor to whom 

information may be made available or disclosed shall be notified in writing by the 

contractor that such information may be disclosed only for a purpose and to the 

extent authorized herein, and that further disclosure of any such information for a 

purpose or to an extent not so authorized may subject the person(s) responsible 

to criminal sanctions imposed by 18 U.S.C. § 641. That section provides, in 

pertinent part, that whoever without authority, sells, conveys, or disposes of any 

record of the United States or whoever receives the same with intent to convert it 

to their use or gain, knowing it to have been converted, will be guilty of a crime 

punishable by a fine up to $10,000, or imprisoned up to ten years, or both. The 

contractor shall obtain written acknowledgment from each officer and employee 

to whom information is made available, that they are aware of the above 

penalties associated with unauthorized disclosure. Such acknowledgments are 

subject to the review of the contracting officer.

(d) Performance of this contract may require the contractor to access and use data 

and information, proprietary to the judiciary or to a judiciary contractor, which is of 

such a nature that its dissemination or use, other than in performance of this 

contract, would be adverse to the interests of the judiciary and/or others.

(e) Contractor and/or contractor personnel shall not divulge or release data or 

information developed or obtained in performance of this contract until made 

public by the judiciary, except as authorized by the contracting officer. The 

contractor shall not use, disclose, or reproduce proprietary data which bears a 

restrictive legend, other than as required in the performance of this contract. 

Nothing herein will preclude the use of any data independently acquired by the 

contractor without such limitations or prohibit an agreement at no cost to the 

judiciary between the contractor and the data owner which provides for greater 

rights to the contractor.

(f) The judiciary and contractor agree that neither expects the performance under 

this contract to involve reporting or handling of classified information or materials. 

Either party shall notify the other promptly in writing if the expectation of that 

party changes, and shall include in the notice reasons therefore. If there are 

sealed records, in camera proceedings or grand jury matters, the contractor shall 

consult with the contracting officer as to the proper safeguarding, security, and 

secrecy of the original notes and transcript orders.

(g) The contracting officer will advise the contractor whenever the judiciary places a 

service order which will require classified information or materials. The 

contractor will have the right to decline to provide services, in which event such 

services shall be outside the scope of this contract.

(h) The contractor shall hold inviolate and in strictest confidence any and all 

information of an official nature not for inclusion in the document, any information 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

which the presiding judicial official designates as “off the record” and all classified 

information and material.

(i) The contractor shall classify, safeguard, and otherwise act with respect to all 

classified information and material in accordance with applicable law and 

requirements of the contracting officer. The contractor shall not permit any 

individual to have or gain access to the classified information or material without 

written permission of the contracting officer, except as access may be necessary 

for authorized employees of the contractor to perform services under this 

contract.

(j) Notwithstanding any other provision of this contract, the contractor may deliver 

transcript containing classified material or information only to the judiciary. The 

contractor shall never sell or deliver such document to a private person without 

the express written permission of the contracting officer. Notwithstanding any 

other provision of this contract, the contractor shall never keep a copy of a 

document containing classified material or information after the delivery of the

original to the contracting officer.

(end)

Clause 7-40, Judiciary-Contractor Relationships

Include the following clause as prescribed in § 715.55(i) (Clauses/Provisions).

Judiciary-Contractor Relationships (JAN 2003)

(a) The judiciary and the contractor understand and agree that the services to be 

delivered under this contract by the contractor to the judiciary are non-personal 

services. The parties recognize and agree that no employer-employee or 

master-servant relationships exist or will exist under the contract between the 

judiciary and the contractor and/or between the judiciary and the contractor's 

employees. It is therefore, in the best interest of the judiciary to afford the parties 

a full and complete understanding of their respective obligations.

(b) The contractor and/or the contractor's personnel under this contract shall not:

(1) be placed in a position where they are appointed or employed by a federal 

officer, or are under the supervision, direction, or evaluation of a federal 

officer;

(2) be placed in a staff or policy making position;

(3) be placed in a position of command, supervision, administration or control 

over judiciary personnel or the personnel of other contractors, or become 

a part of the judiciary organization;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(4) be used for the purpose of avoiding manpower ceilings or other personnel 

rules and regulations.

(c) Employee Relationship

(1) The services to be performed under this contract do not require the 

contractor or its employees to exercise personal judgement and discretion 

on behalf of the judiciary. The contractor's employees will act and 

exercise personal judgement and discretion on the behalf of the 

contractor, as directed by the contractor's supervisory personnel, and in 

accordance with the contract terms and conditions.

(2) Rules, regulations, directions, and requirements issued by the judiciary 

under the judiciary's responsibility for good order, administration, security, 

and safety are applicable to all personnel physically located on-site, 

inclusive of contractor personnel who are required under the terms and 

conditions of this contract to be so located. This is not to be construed or 

interpreted to establish any degree of judiciary control which is 

inconsistent with a non-personal services contract.

(end)

Clause 7-45, Travel

Include the following clause as prescribed in § 715.55(j) (Clauses/Provisions).

Travel (APR 2013)

The contractor may propose travel costs if travel is required for 

performance of the contract and is an authorized reimbursable expense 

under the contract. The extent of reimbursement for incurred travel costs 

will be subject to the limitations set forth in Guide to Judiciary Policy, Vol. 

19, Ch. 4 (Judiciary Staff Travel Regulations).

(end)

Clause 7-50, Parking

Include the following clause as prescribed in § 715.55(k) (Clauses/Provisions).

Parking (APR 2013)

There is no contractor parking available at the Thurgood Marshall Federal 

Judiciary Building (TMFJB). In the event that this contract requires the 

delivery of equipment or materials to the TMFJB, the contractor shall park 

delivery vehicles at designated locations within the TMFJB Complex 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

ONLY WHILE LOADING AND UNLOADING THE VEHICLE. 

Arrangements for pick-up and delivery at the TMFJB shall be coordinated 

with the Contracting Officer’s Representative (COR) and made in 

accordance with building management policies.

(end)

Clause 7-55, Contractor Use of Judiciary Networks

Include the following clause as prescribed in § 715.55(l) (Clauses/Provisions).

Contractor Use of Judiciary Networks (JUN 2014)

Whenever authorized to use judiciary networks, the contractor, subcontractor, teaming 

partner, and all employees (hereinafter referred to as “entities”), shall not perform or 

participate, directly or indirectly, in any of the following:

(a) accessing internet sites which may be inappropriate or reflect poorly on the 

judiciary: Unless accessing internet sites is case-related, entities shall refrain 

from creating, downloading, viewing, storing, copying, and transmitting sexually

explicit or sexually oriented materials which are never appropriate and may be 

illegal in some cases. Internet sites capture the domain name of all sites 

accessing them and maintain a record of this information. It could be 

embarrassing to the judiciary if the judiciary’s domain name were found on the 

access records of inappropriate sites;

(b) logging onto video or audio sites, such as broadcast services or radio stations 

and downloading music files. This consumes significant disk space on local 

computers and may be a violation of copyright law. Each of the several thousand 

video clips downloaded daily can be equal to downloading a 400-page 

memorandum;

(c) using judiciary systems to send or receive e-mails containing greeting cards, 

political statements, jokes, pictures, chain letters or other unauthorized mass 

mailings, regardless of the subject matter, and other items of a personal nature;

(d) sending large attachments unless required for official business. Video, sound, or 

other large file attachments consume large amounts of network capacity. E-mail 

attachments, large files, and executable programs present two problems. First, 

large attachments consume network capacity and storage space on both national 

and local e-mail servers and desktops, slowing the network down for everyone. 

Second, executable programs present a risk for infection by computer viruses;

(e) participating in chat rooms or using “instant messaging” software;

(f) checking personal e-mail accounts over the judiciary’s network;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

(g) using the network connection for personal commercial purposes, private gain, or 

illegal activities. Unless use is required for official judiciary and contract- related 

business, all entities shall refrain from using the network connection for 

commercial purposes (including shopping). It is also inappropriate to use the 

network connection in support of outside employment activities (including 

consulting for pay, sales or administration of business transactions, and sales of 

products or services) or for illegal activities (such as gambling or hacking);

(h) using the e-mail or the network connection for offensive activities. It is 

inappropriate to use e-mail or the internet to access, send, or receive information 

on, or in support of, activities that are illegal or offensive. Such activities include, 

but are not limited to, hate speech or material that ridicules or degrades others 

on the basis of race, creed, religion, color, sex, disability, national origin, or 

sexual orientation.

(end)

Provision 7-60, Judiciary-Furnished Property or Services

Include the following provision as prescribed in § 720.10.40(a) (Clauses).

Judiciary-Furnished Property or Services (JAN 2003)

No property or services will be furnished by the judiciary unless 

specifically provided for in the solicitation.

(end)

Clause 7-65, Protection of Judiciary Buildings, Equipment, and Vegetation

Include the following clause as prescribed in § 720.10.40(b) (Clauses).

Protection of Judiciary Buildings, Equipment, and Vegetation (APR 

2013)

The contractor shall use reasonable care to avoid damaging buildings, 

equipment, and vegetation (such as trees, shrubs, and grass) on the 

judiciary facility. If the contractor’s failure to use reasonable care causes 

damage to any of this property, the contractor shall replace or repair the 

damage at no expense to the judiciary, as the contracting officer directs. If 

the contractor fails or refuses to make such repair or replacement, the 

contractor shall be liable for the cost, which may be deducted from the 

contract price.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

Clause 7-70, Judiciary Property Furnished "As Is"

Include the following clause as prescribed in § 720.10.40(c) (Clauses).

Judiciary Property Furnished "As Is" (APR 2013)

(a) The judiciary makes no warranty whatsoever with respect to judiciary property 

furnished "as is," except that the property is in the same condition when placed at 

the F.o.b. point specified in the solicitation as when inspected by the contractor 

pursuant to the solicitation or, if not inspected by the contractor, as when last 

available for inspection under the solicitation.

(b) The contractor may repair any property made available on an "as is" basis. Such 

repair will be at the contractor's expense except as otherwise provided in this 

clause. Such property may be modified at the contractor's expense, but only with 

the written permission of the contracting officer. Any repair or modification of 

property furnished "as is" shall not affect the title of the judiciary.

(c) If there is any change in the condition of judiciary property furnished "as is " from 

the time inspected or last available for inspection under the solicitation to the time 

placed on board at the location specified in the solicitation, and such change will 

adversely affect the contractor, the contractor shall, upon receipt of the property, 

notify the contracting officer detailing the facts and, as directed by the contracting 

officer, either (1) return such property at the judiciary's expense or otherwise 

dispose of the property or (2) effect repairs to return the property to its condition 

when inspected under the solicitation or, if not inspected, last available for 

inspection under the solicitation. After completing the directed action and upon 

written request of the contractor, the contracting officer will equitably adjust any 

contractual provisions affected by the return, disposition, or repair in accordance 

with the procedures provided for in the Changes clause of this contract. The 

foregoing provisions for adjustment are the exclusive remedy available to the 

contractor, and the judiciary shall not be otherwise liable for any delivery of 

judiciary property furnished "as is" in a condition other than that in which it was 

originally offered.

(end)

Clause 7-75, Subcontracts

Include the following clause as prescribed in § 725.10.40(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

Subcontracts (JAN 2003)

(a) Definitions. As used in this clause:

“Approved Purchasing System” means a contractor’s purchasing system that has 

been reviewed and approved in writing.

“Consent to Subcontract” means the contracting officer’s written consent for the 

contractor to enter into a particular subcontract.

“Subcontract” means any contract entered into by a subcontractor to furnish 

products or services for performance of the prime contract or a subcontract. It 

includes, but is not limited to, purchase orders, and changes and modifications to 

purchase orders.

(b) This clause does not apply to subcontracts for special test equipment.

(c) When this clause is included in a fixed-price type contract, consent to 

subcontract is required only on unpriced contract actions (including unpriced 

modifications or unpriced purchase/delivery/task orders), and only if required in 

accordance with paragraph (d) or (e) of this clause.

(d) If the contractor does not have a written approved purchasing system, consent to 

subcontract is required for any subcontract that:

(1) is of the cost-reimbursement, time-and-materials, or labor-hour type; or

(2) is fixed price and exceeds either the judiciary’s small purchase threshold 

or five percent of the total estimated cost of the contract.

(e) If the contractor has a written approved purchasing system, the contractor 

nevertheless shall obtain the contracting officer’s written consent before placing 

the following contracts: 

_____________________________________________________________

_____________________________________________________________

(f) (1) The contractor shall notify the contracting officer reasonably in advance of 

placing any subcontract or modification thereof for which consent is 

required under paragraph (c), (d), or (e) of this clause, including the 

following information:

(i) a description of the products or services to be subcontracted;

(ii) identification of the type of subcontract to be used;

(iii) identification of the proposed subcontractor;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

(iv) the proposed subcontract price;

(v) the subcontractor’s detailed cost information, if required by other 

contract provisions;

(vi) a negotiation memorandum reflecting:

(A) the principal elements of the subcontract price negotiations;

(B) the most significant considerations controlling establishment 

of initial or revised prices;

(C) the reason detailed cost information was or was not 

required;

(D) the extent, if any, to which the contractor did not rely on the 

subcontractor’s detailed cost information in determining the 

price objective and in negotiating the final price;

(E) the extent to which it was recognized in the negotiation that 

the subcontractor’s detailed cost information was not 

accurate, complete, or current; the action taken by the 

contractor and the subcontractor; and the effect of any such 

defective cost information on the total price negotiated;

(F) the reasons for any significant difference between the 

contractor’s price objective and the price negotiated; and

(G) a complete explanation of the incentive fee or profit plan 

when incentives are used. The explanation shall identify 

each critical performance element, management decisions 

used to quantify each incentive element, reasons for the 

incentives, and a summary of all trade-off possibilities 

considered.

(2) If the contractor has a written approved purchasing system and consent is 

not required under paragraph (c), (d), or (e) of this clause, the contractor 

nevertheless shall notify the contracting officer reasonably in advance of 

entering into any (i) cost-plus-fixed-fee subcontract, or (ii) fixed-price 

subcontract that exceeds either the small purchases threshold or five 

percent of the total estimated cost of this contract. The notification shall 

include the information required by paragraphs (f)(1)(i) through (f)(1)(iv) of 

this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(g) Unless the consent or approval specifically provides otherwise, neither consent 

by the contracting officer to any subcontract nor approval of the contractor’s

purchasing system will constitute a determination:

(1) of the acceptability of any subcontract terms or conditions;

(2) of the allowability of any cost under this contract; or

(3) to relieve the contractor of any responsibility for performing this contract.

(h) No subcontract or modification thereof placed under this contract shall provide for 

payment on a cost-plus-a-percentage-of-cost basis, or any fee payable under 

cost-reimbursement type subcontracts will not exceed the fee limitations.

(i) The contractor shall give the contracting officer immediate written notice of any 

action or suit filed and prompt notice of any claim made against the contractor by 

any subcontractor or vendor that, in the opinion of the contractor, may result in 

litigation related in any way to this contract, with respect to which the contractor 

may be entitled to reimbursement from the judiciary.

(j) The judiciary reserves the right to review the contractor’s purchasing system.

(k) Paragraphs (d) and (f) of this clause do not apply to the following subcontracts, 

which were evaluated during negotiations.

(end)

Clause 7-80, Competition in Subcontracting

Include the following clause as prescribed in § 725.10.40(b) (Clauses).

Competition in Subcontracting (JAN 2003)

The contractor shall select subcontractors (including suppliers) on a 

competitive basis to the maximum practical extent consistent with the 

objectives and requirements of the contract.

(end)

Clause 7-85, Examination of Records

Include the following clause as prescribed in § 730.20.20 (Contractor Record 

Retention).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

Examination of Records (JAN 2003)

(a) The judiciary will have access to and the right to examine any directly pertinent 

books, documents, papers, or other records of the contractor involving 

transactions related to this contract, until three years after final payment under 

this contract, or for any shorter period specified for particular records.

(b) The contractor agrees to include in all subcontracts under this contract a 

provision to the effect that the judiciary will have until three years after final 

payment under the contract, or for any shorter specified period for particular 

records, have access to and the right to examine any directly pertinent books, 

documents, papers, or other records of the subcontractor involving transactions 

related to the subcontract. The term subcontract as used in this clause excludes:

(1) purchase orders; and

(2) subcontracts for public utility services at rates established for uniform 

applicability to the general public.

(end)

Clause 7-95, Contractor Inspection Requirements

Include the following clause as prescribed in § 220.10.70(d) (Clauses for Inclusion in 

Solicitations or Contracts).

Contractor Inspection Requirements (JAN 2003)

The contractor is responsible for performing or having performed all 

inspections and tests necessary to substantiate that the products or 

services furnished under this contract conform to contract requirements, 

including any applicable technical requirements for specified 

manufacturers' parts. This clause takes precedence over any judiciary 

inspection and testing required in the contract's specifications, except for 

specialized inspections or tests specified to be performed solely by the 

judiciary.

(end)

Clause 7-100A, Limitation of Liability (Products)

Include the following clause as prescribed in § 220.10.70(e) (Clauses for Inclusion in 

Solicitations or Contracts).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

Limitation of Liability (Products) (JAN 2003)

(a) Except as provided in paragraphs (b) and (c) this clause, and except for 

remedies expressly provided elsewhere in this contract, the contractor shall not 

be liable for loss of or damage to property of the judiciary (excluding the products 

delivered under this contract) that:

(1) occurs after judiciary acceptance of the products delivered under this 

contract; and

(2) results from any defects or deficiencies in the products.

(b) The limitation of liability under paragraph (a) of this clause shall not apply when a 

defect or deficiency in, or the judiciary's acceptance of, the products results from 

willful misconduct or lack of good faith on the part of any of the contractor's 

managerial personnel. The term "contractor's managerial personnel," as used in 

this clause, means the contractor's directors, officers, and any of the contractor's 

managers, superintendents, or equivalent representatives who have supervision 

or direction of:

(1) all or substantially all of the contractor's business;

(2) all or substantially all of the contractor's operations at any one plant, 

laboratory, or separate location at which the contract is being performed; 

or

(3) a separate and complete major industrial operation connected with the 

performance of this contract.

(c) If the contractor carries insurance, or has established a reserve for selfinsurance, covering liability for loss or damage suffered by the judiciary through 

purchase or use of the products required to be delivered under this contract or 

the contractor’s performance of services or furnishing of materials under this 

contract, the contractor shall be liable to the judiciary, to the extent of such 

insurance or reserve, for loss of or damage to property of the judiciary occurring 

after judiciary acceptance of, and resulting from any defects or deficiencies in, 

the products delivered under this contract.

(end)

Clause 7-100B, Limitation of Liability (Services)

Include the following clause as prescribed in § 220.10.70(f) (Clauses for Inclusion in 

Solicitations or Contracts).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

Limitation of Liability (Services) (JAN 2003)

(a) Except as provided in paragraphs (b) and (c) of this clause, and except to the 

extent that the contractor is expressly responsible under this contract for 

deficiencies in the services required to be performed under it (including any 

materials furnished in conjunction with those services), the contractor shall not be 

liable for loss of or damage to property of the judiciary that:

(1) occurs after judiciary acceptance of services performed under this 

contract; and

(2) results from any defects or deficiencies in the services performed or 

materials furnished.

(b) The limitation of liability under paragraph (a) of this clause shall not apply when a 

defect or deficiency in, or the judiciary’s acceptance of, services performed or 

materials furnished results from willful misconduct or lack of good faith on the 

part of any of the contractor’s managerial personnel. The term “contractor’s 

managerial personnel,” as used in this clause, means the contractor’s directors, 

officers, and any of the contractor’s managers, superintendents, or equivalent 

representatives who have supervision or direction of:

(1) all or substantially all of the contractor’s business;

(2) all or substantially all of the contractor’s operations at any one plant, 

laboratory, or separate location at which the contract is being performed; 

or

(3) a separate and complete major industrial operation connected with the 

performance of this contract.

(c) If the contractor carries insurance, or has established a reserve for selfinsurance, covering liability for loss or damage suffered by the judiciary through 

the contractor’s performance of services or furnishing of materials under this 

contract, the contractor shall be liable to the judiciary, to the extent of such 

insurance or reserve, for loss of or damage to property of the judiciary occurring 

after judiciary acceptance of, and resulting from any defects and deficiencies in, 

services performed or materials furnished under this contract.

(end)

Clause 7-105, RESERVED

Clause 7-110, Bankruptcy

Include the following clause as prescribed in § 735.60.40 (Clause).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

Bankruptcy (JAN 2003)

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 

five calendar days of the initiation of the bankruptcy 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 petition 

was filed, and a list of judiciary contract numbers and contracting offices 

for all judiciary contracts pursuant to which final payment has not been 

made. This obligation remains in effect until final payment under this 

contract.

(end)

Clause 7-115, Availability of Funds

Include the following clause as prescribed in § 220.50.90(a) (Clauses for Contracting in 

Advance of Funds).

Availability of Funds (JAN 2003)

Funds are not presently available for this contract. The judiciary's 

obligation under this contract is contingent upon the availability of 

appropriated funds from which payment for contract purposes can be 

made. No legal liability on the part of the judiciary for any payment may 

arise until funds are made available to the contracting officer for this 

contract and until the contractor receives notice of such availability, to be 

confirmed in writing by the contracting officer.

(end)

Clause 7-120, Availability of Funds for the Next Fiscal Year

Include the following clause as prescribed in § 220.50.90(b) (Clauses for Contracting in 

Advance of Funds).

Availability of Funds for the Next Fiscal Year (JAN 2003)

Funds are not presently available for performance under this contract 

beyond ________. The judiciary's obligation for performance of this 

contract beyond that date is contingent upon the availability of 

appropriated funds from which payment for contract purposes can be 

made. No legal liability on the part of the judiciary for any payment may 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

arise for performance under this contract beyond _____, until funds are 

made available to the contracting officer for performance and until the 

contractor receives notice of availability, to be confirmed in writing by the 

contracting officer.

(end)

Clause 7-125, Invoices

Include the following clause as prescribed in § 740.20.30 (Clause).

Invoices (APR 2011)

(a) Invoices shall be submitted to the address (physical or e-mail) specified in this 

contract and in accordance with any schedule for payments set forth elsewhere 

under this contract.

(b) The office that will make payments due under this contract will be designated in 

the contract at the time of contract award.

(c) To constitute a proper invoice, the billing document shall include the following 

information and/or attached documentation:

(1) name of business concern and such business’s Taxpayer Identification 

Number;

(2) period(s) covered by invoice and invoice date;

(3) purchase order or contract number or other authorization for delivery of 

property or services, e.g., delivery/task order number for orders under 

indefinite delivery contracts;

(4) for each line item — general description of product delivered or services 

rendered, measured unit, and associated price;

(5) any applicable payment discount terms;

(6) total amount billed;

(7) a subtotal of any and all fees or credits applied to the invoice;

(8) an amount due (if any) or credit balance;

(9) name (where practicable), title, phone number, fax number, and complete 

mailing address of the responsible official to whom payment is to be sent. 

The “remit to” address shall correspond to the remittance address in the 

contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(10) other substantiating documentation or information as required by the 

purchase/delivery/task order or contract;

(11) all follow-up invoices shall be marked “Duplicate of Original.” Contractor 

questions regarding payment information or check identification shall be 

directed to the relevant paying authority specified in the contract.

(end)

Alternate I (JAN 2010): As prescribed in § 520.75(f), and when 

applicable, the contracting officer must substitute the following paragraph 

(c)(4) for paragraphs (c)(4) of the basic Clause 7-125.

(4) All invoices for services under this agreement shall indicate in detail the 

following:

(i) person performing service each day by hour and part of an hour;

(ii) services performed each day by hour and part of an hour;

(iii) rates and charges for each service so detailed; and

(iv) individual expenses charged, if allowed under this agreement.

Note: Minimum charges for portions of an hour may be allowed, if such a 

charging practice has been disclosed before award of this agreement.

Clause 7-130, Interest (Prompt Payment)

Include the following clause as prescribed in § 740.30.30 (Payment of Interest).

Interest (Prompt Payment) (JAN 2003)

The provisions of the Prompt Payment Act of 1982 and OMB Budget 

Circular A-125 concerning interest on overdue payments are not 

applicable to the judiciary. Therefore, interest is not payable under this 

contract for overdue payments.

(end)

Clause 7-135, Payments

Include the following clause as prescribed in § 740.30.50(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

Payments (APR 2013)

The judiciary will pay the contractor, upon the submission of proper 

invoices or vouchers, the prices stipulated in this contract for products 

delivered and accepted or services rendered and accepted, less any 

deductions provided in this contract. Unless otherwise specified in this 

contract, payment will be made on partial deliveries accepted by the 

judiciary if:

(1) the amount due on the deliveries warrants it; or

(2) the contractor requests it and the amount due on the deliveries is at least 

$1,000 or 50 percent of the total contract price.

Unless authorized elsewhere in this contract, payments will not be made more 

often than monthly.

(end)

Clause 7-140, Discounts for Prompt Payment

Include the following clause as prescribed in § 740.30.50(b) (Clauses).

Discounts for Prompt Payment (JAN 2003)

(a) Discounts for prompt payment will not be considered in the evaluation of offers. 

However, any offered discount will form a part of the award, and will be taken if 

payment is made within the discount period indicated in the offer by the offeror. 

As an alternative to offering a discount for prompt payment in conjunction with 

the offer, offerors awarded contracts may include discounts for prompt payment 

on individual invoices.

(b) In connection with any discount offered for prompt payment, time will be 

computed from the date of the invoice. If the contractor has not placed a date on 

the invoice, the due date will be calculated from the date the designated billing 

office receives a proper invoice, provided the judiciary annotates such invoice 

with the date of receipt at the time of receipt. For the purpose of computing the 

discount earned, payment will be considered to have been made on the date that 

appears on the payment check or, for an electronic funds transfer, the specified 

payment date. When the discount date falls on a Saturday, Sunday, or legal 

holiday when judiciary offices are closed and judiciary business is not expected 

to be conducted, payment may be made on the following business day.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

Clause 7-145, Government Purchase Card

Include the following clause as prescribed in § 740.30.50(c) (Clauses).

Government Purchase Card (JAN 2003)

(a) Card holders may use an authorized government purchase card to make 

payments for orders placed against this contract.

(b) Purchase Card Terms: In accepting the purchase card as payment, the 

contractor agrees to abide by the terms of the GSA purchase card contract.

(c) Backorder: In accordance with the GSA purchase card contract, the contractor 

may not charge for back-ordered products before shipment,

(d) Taxes: government purchases are generally not subject to state or local taxes, 

with limited exceptions in Arizona, New Mexico and Hawaii.

(e) Unauthorized card: If the contractor determines that the card bearer is not an 

authorized cardholder, or that the card is not an authorized government purchase 

card, then the contractor shall immediately notify the contracting officer.

(f) Disputes: Any purchase card disputes will be resolved in accordance with the 

GSA purchase card contract.

(g) Payments: Purchase card payments will be made in accordance with the GSA 

purchase card contract.

(end)

Clause 7-150, Extras

Include the following clause as prescribed in § 740.30.50(d) (Clauses).

Extras (JAN 2003)

Except as otherwise provided in this contract, no payment for extras will 

be made unless such extras, and the price for such extras, have been 

authorized in writing by the contracting officer.

(end)

Clause 7-155, Certification of Final Indirect Costs

Include the following clause as prescribed in § 740.30.50(e) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

Certification of Final Indirect Costs (JAN 2003)

(a) The contractor shall:

(1) certify any offer to establish or modify final indirect cost rates;

(2) use the format in paragraph (c) of this clause to certify; and

(3) have the certificate signed by an individual of the contractor's organization 

at a level no lower than a vice president or chief financial officer of the 

business segment of the contractor that submits the offer.

(b) Failure by the contractor to submit a signed certificate, as described in this 

clause, may result in final indirect costs at rates unilaterally established by the 

contracting officer.

(c) The certificate of final indirect costs shall read as follows:

Certificate of Final Indirect Costs

This is to certify that I have reviewed this offer to establish final indirect 

cost rates and to the best of my knowledge and belief:

(1) all costs included in this offer ____________(identify offer and date) to 

establish final indirect cost rates for ________(identify period covered by 

rate) are allowable in accordance with the cost principles in Guide to 

Judiciary Policy, Vol. 14, Ch. 4 applicable to the contracts to which the 

final indirect cost rates will apply; and

(2) this offer does not include any costs which are expressly unallowable 

under cost principles of Guide to Judiciary Policy, Vol. 14, Ch. 4.

Firm: _____________________________________

Signature: _________________________________

Name of Certifying Official: __________________

Title: _____________________________________

Date of Execution: __________________________

(end)

Clause 7-160, Limitation on Withholding of Payments

Include the following clause as prescribed in § 740.40.50(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

Limitation on Withholding of Payments (APR 2013)

If more than one clause or term of this contract authorizes the temporary 

withholding of amounts otherwise payable to the contractor for products 

delivered or services performed, the total of the amounts withheld at any 

one time shall not exceed the greatest amount that may be withheld under 

any one clause or term at that time; provided, that this limitation shall not 

apply to:

(1) withholdings pursuant to any clause relating to wages or hours of 

employees;

(2) withholdings not specifically provided for by this contract;

(3) the recovery of overpayments; and

(4) any other withholding for which the contracting officer determines that this 

limitation is inappropriate.

(end)

Clause 7-165, Penalties for Unallowable Costs

Include the following clause as prescribed in § 740.40.50(b) (Clauses).

Penalties for Unallowable Costs (JUN 2012)

(a) Definition. "Offer," as used in this clause, means either:

(1) a final indirect cost rate offer submitted by the contractor after the 

expiration of its fiscal year which:

(i) relates to any payment made on the basis of billing rates; or

(ii) will be used in negotiating the final contract price; or

(2) the final statement of costs incurred and estimated to be incurred under 

the Incentive Price Revision clause (if applicable), which is used to 

establish the final contract price.

(b) Contractors that include unallowable indirect costs in an offer may be subject to 

penalties. The penalties are prescribed in 10 U.S.C. § 2324 or 41 U.S.C. § 4303, 

as applicable.

(c) The contractor shall not include in any offer any cost that is unallowable, as 

defined in Guide to Judiciary Policy, Vol. 14, Ch. 4.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

(d) If the contracting officer determines that a cost submitted by the contractor in its 

offer is expressly unallowable, the contractor shall be assessed a penalty equal 

to:

(1) the amount of the disallowed cost allocated to this contract; plus

(2) simple interest, to be computed:

(i) on the amount the contractor was paid on a billing payment in 

excess of the amount to which the contractor was entitled; and

(ii) using the applicable rate effective for each six-month interval 

prescribed by the Secretary of the Treasury pursuant to Pub. L. 92-

41 (85 Stat. 97).

(e) If the contracting officer determines that a cost submitted by the contractor in its 

offer includes a cost previously determined to be unallowable for that contractor, 

then the contractor will be assessed a penalty in an amount equal to two times 

the amount of the disallowed cost allocated to this contract.

(f) Determinations under paragraphs (d) and (e) of this clause are final decisions.

(g) In certain cases, the contracting officer may waive the penalties in paragraph (d) 

or (e) of this clause. The contracting officer will provide a written determination of 

the reasons for the waiver in the contract file.

(h) Payment by the contractor of any penalty assessed under this clause does not 

constitute repayment to the judiciary of any unallowable cost which has been 

paid by the judiciary to the contractor.

(end)

Clause 7-170, Notice of Intent to Disallow Costs

Include the following clause as prescribed in § 740.40.50(c) (Clauses).

Notice of Intent to Disallow Costs (JAN 2003)

(a) Notwithstanding any other clause of this contract:

(1) The contracting officer may at any time issue to the contractor a written 

notice of intent to disallow specified costs incurred or planned for 

incurrence under this contract that have been determined not to be 

allowable under the contract terms; and

(2) The contractor may, after receiving a notice under paragraph (a)(1) of this 

clause, submit a written response to the contracting officer, with 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

justification for allowance of the costs. If the contractor does respond 

within 60 days, the contracting officer will, within 60 days of receiving the 

response, either make a written withdrawal of the notice or issue a written 

decision.

(b) Failure to issue a notice under this Notice of Intent to Disallow Costs clause will 

not affect the judiciary's rights to take exception to incurred costs.

(end)

Clause 7-175, Assignment of Claims

Include the following clause as prescribed in § 740.50.40(a) (Clauses).

Assignment of Claims (JAN 2003)

(a) The contractor may assign its rights to be paid amounts due or to become due as 

a result of the performance of this contract to a bank, trust company, or other 

financing institution, including any federal lending agency. The assignee under 

such an assignment may thereafter further assign or reassign its right under the 

original assignment to any type of financing institution described in the preceding 

sentence.

(b) Any assignment or reassignment authorized under this clause will cover all 

unpaid amounts payable under this contract, and will not be made to more than 

one party, except that an assignment or reassignment may be made to one party 

as agent or trustee for two or more parties participating in the financing of this 

contract.

(c) The contractor shall not furnish or disclose to any assignee under this contract 

any sensitive or classified document (including this contract) or information 

related to work under this contract unless the contracting officer authorizes such 

action in writing.

(end)

Clause 7-180, Prohibition of Assignment of Claims

Include the following clause as prescribed in § 740.50.40(b) (Clauses).

Prohibition of Assignment of Claims (JUN 2012)

The assignment of claims under the Assignment of Claims Act of 1940, as 

amended, 31 U.S.C. § 3727, 41 U.S.C. § 6305, is prohibited for this 

contract.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

Clause 7-185, Changes

Include the following clause as prescribed in § 745.40.40(a) (Clauses).

Changes (APR 2013)

(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 products to be furnished are 

to be specially manufactured for the judiciary in accordance with the 

drawings, designs, or specifications;

(2) statement of work or description of services to be performed;

(3) method of shipment or packing of products;

(4) place of delivery of products or place of performance;

(5) delivery or performance schedule, time (i.e., hours of the day, days of the 

week, etc.) or place of delivery or performance of services;

(6) judiciary-furnished property or facilities.

(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 under this contract, whether or 

not changed by the order, the contracting officer will make an equitable 

adjustment in the contract price, the delivery schedule, or both, and will modify 

the contract.

(c) The contractor shall assert its right to an adjustment 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 an offer submitted 

before final payment of the contract.

(d) If the contractor’s offer includes the cost of property made obsolete or excess by 

the change, the contracting officer will have the right to prescribe the manner of 

the disposition of the property.

(e) Failure to agree to any adjustment is a dispute under the Disputes clause. 

However, nothing in this clause will excuse the contractor from proceeding with 

the contract as changed.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

Alternate I (APR 2013): In accordance with § 745.40.40(b) (Clauses), substitute the 

following paragraphs (b) and (d) for the same numbered paragraphs of the basic clause 

in cost-reimbursement contracts.

(b) If any such change causes an increase or decrease in the estimated cost of, or 

the time required for, performance of any part of the work under this contract, 

whether or not changed by the order, or otherwise affects any other terms and 

conditions of this contract, the contracting officer will make an equitable 

adjustment in the:

(1) estimated cost, delivery or completion schedule, or both;

(2) amount of any fixed fee; and

(3) other affected terms and shall modify the contract accordingly.

(d) Notwithstanding the terms and conditions of paragraphs (a) and (b) of this 

clause, the estimated cost of this contract and, if this contract is incrementally 

funded, the funds allotted for the performance of this contract, shall not be 

increased or considered to be increased except by specific written modification of 

the contract indicating the new contract estimated cost and, if this contract is 

incrementally funded, the new amount allotted to the contract. Until this 

modification is made, the contractor shall not be obligated to continue 

performance or incur costs beyond the point established in either Clause 4-85, 

Limitation of Cost, or Clause 4-90, Limitation of Funds, of this contract, whichever 

is applicable.

Alternate II (APR 2013): In accordance with § 745.40.40(c) (Clauses), substitute 

following for paragraph (b) of the basic clause in time-and-materials or labor-hour 

contracts.

(b) If any change causes an increase or decrease in the hourly rates, the ceiling 

price, or the time required for performance of any part of the work under this 

contract, whether or not changed by the order, or otherwise affects any other 

terms and conditions of this contract, the contracting officer will make an 

equitable adjustment in any one or more of the following and will modify the 

contract accordingly:

(1) ceiling price;

(2) hourly rates;

(3) delivery schedule or completion date; and

(4) other affected terms.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

Alternate III (APR 2013): In accordance with § 745.40.40(d) (Clauses), substitute 

following for paragraph (a) of the basic clause in firm-fixed-price architect-engineer 

contracts and add paragraph (f).

(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 the 

services to be performed.

(f) No services for which an additional cost or fee will be charged by the contractor 

shall be furnished without the prior written authorization of the contracting officer.

Clause 7-190, Change Order Accounting

Include the following clause as prescribed in § 745.40.40(e) (Clauses).

Change Order Accounting (JAN 2003)

The contracting officer may require change order accounting whenever 

the estimated cost of a change or series of related changes exceeds the 

judiciary’s small purchase threshold. The contractor, for each change or 

series of related changes, shall maintain separate accounts, by job order 

or other suitable accounting procedure, of all incurred segregable, direct 

costs (less allocable credits) of work, both changed and not changed,

allocable to the change. The contractor shall maintain such accounts until 

the parties agree to an equitable adjustment for the changes ordered by 

the contracting officer or the matter is conclusively disposed of in 

accordance with the Disputes clause.

(end)

Clause 7-195, Excusable Delays

Include the following clause as prescribed in § 745.45.55(a) (Clauses).

Excusable Delays (JAN 2003)

(a) Except for defaults of subcontractors at any tier, the contractor will not be in 

default because of any failure to perform this contract under its terms if the failure 

arises from causes beyond the control and without the fault or negligence of the 

contractor. Examples of these causes are (1) acts of God or of the public enemy, 

(2) acts of the government in its sovereign capacity or of the judiciary in its 

contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine 

restrictions, (7) strikes, (8) freight embargoes, and (9) unusually severe weather. 

In each instance, the failure to perform shall be beyond the control and without 

the fault or negligence of the contractor. “Default” includes failure to make 

progress in the work so as to endanger performance.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

(b) If failure to perform is caused by the failure of a subcontractor at any tier to 

perform or make progress, and if the cause of the failure was beyond the control 

of both the contractor and subcontractor, and without the fault or negligence of 

either, the contractor will not be deemed to be in default, unless:

(1) the subcontract products or services were obtainable from other sources;

(2) the contracting officer ordered the contractor in writing to purchase these 

products or services from the other source; and

(3) the contractor failed to comply reasonably with this order.

(c) Upon request of the contractor, the contracting officer will ascertain the facts and 

extent of the failure. If the contracting officer determines that any failure to 

perform resulted from one or more of the causes above, the delivery schedule 

will be revised, subject to the rights of the judiciary under the termination clause 

of this contract.

(end)

Clause 7-200, Judiciary Delay of Work

Include the following clause as prescribed in § 745.45.55(b) (Clauses).

Judiciary Delay of Work (JAN 2003)

(a) If the performance of all or any part of the work of this contract is delayed or 

interrupted (1) by an act of the contracting officer in the administration of this 

contract that is not expressly or impliedly authorized by this contract, or (2) by a 

failure of the contracting officer to act within the time specified in this contract, or 

within a reasonable time if not specified, an adjustment (excluding profit) will be 

made for any increase in the cost of performance of this contract caused by the 

delay or interruption and the contract will be modified in writing accordingly. 

Adjustment will also be made in the delivery or performance dates and any other 

contractual term or condition affected by the delay or interruption. However, no 

adjustment will be made under this clause for any delay or interruption to the 

extent that performance would have been delayed or interrupted by any other 

cause, including the fault or negligence of the contractor, or for which an 

adjustment is provided or excluded under any other term or condition of this 

contract.

(b) A claim under this clause will not be allowed:

(1) for any costs incurred more than 20 days before the contractor shall have 

notified the contracting officer in writing of the act or failure to act involved; 

and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

(2) unless the claim, in an amount stated, is asserted in writing as soon as 

practicable after the termination of the delay or interruption, but not later 

than the day of final payment under the contract.

(end)

Clause 7-205, Payment for Judiciary Holidays

Include the following clause as prescribed in § 745.45.55(c) (Clauses).

Payment for Judiciary Holidays (OCT 2023)

On judiciary holidays, on-site contractors are not entitled to compensation 

unless:

(1) the contract requires the contractor to be on-site at the judiciary facility 

during the holiday;

(2) the contract specifically provides for compensation to the contractor on 

judiciary holidays; or

(3) the contractor obtains written approval from the contracting officer or 

designated contracting officer’s representative (COR) to perform work at 

an off-site location. The following holidays are observed by the judiciary: 

New Year’s Day, Birthday of Martin Luther King, Jr., Presidential 

Inauguration Day (metropolitan DC area only), Washington’s Birthday, 

Memorial Day, Juneteenth National Independence Day, Independence 

Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day, 

Christmas Day.

(end)

Clause 7-210, Payment for Emergency Closures

Include the following clause as prescribed in § 745.45.55(d) (Clauses).

Payment for Emergency Closures (APR 2013)

During an emergency closure of the judiciary, or any individual judiciary 

office, taken in its sovereign capacity for the public good, the judiciary is 

not obligated to compensate contractors during the emergency closure, 

unless: 1) the contract specifically requires the contractor to be on-site at 

the judiciary facility during an emergency closure; 2) the contract 

specifically provides for compensation to the contractor even when the 

government acts in its sovereign capacity; or 3) the contractor obtains 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

approval from the contracting officer or designated contracting officer’s 

representative (COR) to perform work at an off-site location.

(end)

Clause 7-215, Notification of Ownership Changes

Include the following clause as prescribed in § 745.55.40(i) (Novation Agreements).

Notification of Ownership Changes (JAN 2003)

(a) The contractor shall make the following notifications in writing:

(1) when the contractor becomes aware that a change in its ownership has 

occurred, or is certain to occur, that could result in changes in the 

valuation of its capitalized assets in the accounting records, the contractor 

shall notify the contracting officer within 30 days;

(2) the contractor shall also notify the contracting officer within 30 days 

whenever changes to asset valuations or any other cost changes have 

occurred or are certain to occur as a result of a change in ownership.

(b) The contractor shall:

(1) maintain current, accurate, and complete inventory records of assets and 

their costs;

(2) provide the contracting officer or designated representative ready access 

to the records upon request;

(3) ensure that all-individual and grouped assets, their capitalized values, 

accumulated depreciation or amortization, and remaining useful lives are 

identified accurately before and after each of the contractor's ownership 

changes; and

(4) retain and continue to maintain depreciation and amortization schedules 

based on the asset records maintained before each contractor ownership 

change.

(c) The contractor shall include the substance of this clause in all subcontracts under 

this contract.

(end)

Clause 7-220, Termination for Convenience of the Judiciary (Fixed-Price)

Include the following clause as prescribed in § 755.20.60(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-35

Termination for Convenience of the Judiciary (Fixed-Price) (JAN 

2003)

(a) The judiciary may terminate performance of work under this contract in whole or, 

from time to time, in part if the contracting officer determines that termination is in 

the judiciary’s interest. The contracting officer will terminate by delivering to the 

contractor a notice of termination specifying the extent of the 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 orders and subcontracts to the extent they relate to the work 

terminated;

(4) assign to the judiciary, as directed by the contracting officer, all right, title, 

and interest of the contractor under the subcontracts terminated, in which 

case the judiciary shall have the right to settle or to pay any termination 

settlement offer arising out of those terminations;

(5) with written approval or ratification to the extent required by the 

contracting officer, settle all outstanding liabilities and termination 

settlement offers arising from the termination of subcontracts; the written 

approval or ratification will be final for purposes of this clause;

(6) as directed by the contracting officer, transfer title and deliver to the 

judiciary:

(i) the fabricated or unfabricated parts, 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 judiciary;

(7) complete performance of the work not terminated;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-36

(8) take any action that may be necessary, or that the contracting officer may 

direct, for the protection and preservation of the property related to this 

contract that is in the possession of the contractor and in which the 

judiciary 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 paragraph (b)(6) of this 

clause, 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 in writing by, the 

contracting officer. The proceeds of any transfer or disposition will be 

applied to reduce any payments to be made by the judiciary under this 

contract, credited to the price or cost of the work, or paid in any other 

manner directed by the contracting officer.

(c) The contractor shall submit complete termination inventory schedules no later 

than 120 days from the effective date of termination, unless extended in writing 

by the contracting officer upon written request of the contractor within this 120-

day period.

(d) After expiration of the plant clearance period, the contractor may submit to the 

contracting officer a list, certified as to quantity and quality, of termination 

inventory not previously disposed of, excluding items authorized for disposition 

by the contracting officer. The contractor may request the judiciary to remove 

those items or enter into an agreement for their storage. Within 15 days, the 

judiciary will accept title to those items and remove them or enter into a storage 

agreement. The contracting officer may verify the list upon removal of the items, 

or if stored, within 45 days from submission of the list, and will correct the list, as 

necessary, before final settlement.

(e) After termination, the contractor shall submit a final termination settlement offer 

to the contracting officer in the form and with the certification prescribed by the 

contracting officer. The contractor shall submit the offer promptly, but no later 

than 1 year from the effective date of termination, unless extended in writing by 

the contracting officer upon written request of the contractor within this 1-year 

period. However, if the contracting officer determines that the facts justify it, a 

termination settlement offer may be received and acted on after the 1 year or any 

extension. If the contractor fails to submit the offer 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.

(f) Subject to paragraph (e) of this clause, the contractor and contracting officer may 

agree upon the whole or any part of the amount to be paid or remaining 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-37

this paragraph (f) or paragraph (g) of this clause, exclusive of costs shown in 

paragraph (g)(3) of this clause, 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 will be modified, and the contractor 

paid the agreed amount. Paragraph (g) of this clause will not limit, restrict, or 

affect the amount that may be agreed upon to be paid under this paragraph.

(g) 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 will pay the 

contractor amounts determined by the contracting officer as follow, but without 

duplication of any amounts agreed on under paragraph (f) of this clause:

(1) the contract price for completed products or services accepted by the 

judiciary (or sold or acquired under paragraph (b)(9) of this clause) not 

previously paid for, adjusted for any saving 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 expense allocable thereto, 

but excluding any costs attributable to products or services paid or 

to be paid under paragraph (g)(1) of this clause;

(ii) the cost of settling and paying termination settlement offers under 

terminated subcontracts that are properly chargeable to the 

terminated portion of the contract if not included in subdivision 

(g)(2)(i) of this clause; and

(iii) a sum, as profit on subdivision (g)(2)(i) of this clause, determined 

by the contracting officer; in effect on the date of the contract, 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 will allow no profit under this subdivision 

(g)(2)(iii) and will 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 offers and 

supporting data;

(ii) the termination and settlement of subcontracts (excluding the 

amounts of such settlements); and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-38

(iii) storage, transportation, and other costs incurred, reasonably 

necessary for the preservation, protection, or disposition of the 

termination inventory.

(h) Except for normal spoilage, and except to the extent that the judiciary expressly 

assumed the risk of loss, the contracting officer will exclude from the amounts 

payable to the contractor under paragraph (g) of this clause, 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 judiciary or to a buyer.

(i) The cost principles and procedures of Guide to Judiciary Policy, Vol. 14, Ch. 4 in 

effect on the date of this contract will govern all costs claimed, agreed to, or 

determined under this clause.

(j) The contractor shall have the right of appeal under the Disputes clause, from any 

determination made by the contracting officer under paragraph (e), (g), or (l) of 

this clause, except that if the contractor has failed to submit the termination 

settlement offer or request for equitable adjustment within the time provided in 

paragraph (e) or (l), respectively, and failed to request an extension of time, there 

is no right of appeal.

(k) In arriving at the amount due the contractor under this clause, there will be 

deducted:

(1) all unliquidated advance or other payments to the contractor under the 

terminated portion of this contract;

(2) any claim which the judiciary has against the contractor under this 

contract; and

(3) the agreed price for, or the proceeds of sale of materials, products, or 

other things acquired by the contractor or sold under the provisions of this 

clause and not recovered by or credited to the judiciary.

(l) If the termination is partial, the contractor may file an offer with the contracting 

officer for an equitable adjustment of the price(s) of the continued portion of the 

contract. The contracting officer will make any equitable adjustment agreed 

upon. Any offer 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.

(m) (1) The judiciary may, under the terms and conditions it prescribes, make 

partial payments and payments against costs incurred by the contractor 

for the terminated portion of the contract, if the contracting officer believes 

the total of these payments will not exceed the amount to which the 

contractor will be entitled.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-39

(2) If the total payments exceed the amount finally determined to be due, the 

contractor shall repay the excess to the judiciary 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 will be computed for 

the period from the date the excess is repaid. Interest will not be charged 

on any excess payment due to a reduction in the contractor’s termination 

settlement offer 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.

(n) Unless otherwise provided in this contract, or by statute, the contractor shall 

maintain all records and documents relating to the terminated portion of this 

contract for 3 years after final settlement. This includes all books and other 

evidence bearing on the contractor’s costs and expenses under this contract. 

The contractor shall make these records and documents available to the 

judiciary, at the contractor’s office, at all reasonable times, without any direct 

charge. If approved in writing by the contracting officer, photographs, 

microphotographs, or other authentic reproductions may be maintained instead 

of original records and documents.

(end)

Clause 7-223 Termination for Convenience of the Judiciary (Short Form)

Include the following clause as prescribed in § 755.20.60(b) (Clauses).

Termination for Convenience of the Judiciary (Short Form) (AUG 

2004)

The contracting officer, by written notice, may terminate this contract, in 

whole or in part, when it is in the judiciary’s interest. If this contract is 

terminated, the judiciary shall be liable only for payment under the 

payment provisions of this contract for products received or services 

rendered before the effective date of termination.

(end)

Clause 7-225, Termination (Cost-Reimbursement)

Include the following clause as prescribed in § 755.20.60(c) (Clauses).

Termination (Cost-Reimbursement) (MAR 2019)

(a) The judiciary may terminate performance of work under this contract in whole or, 

from time to time, in part, if:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-40

(1) the contracting officer determines that a termination is in the judiciary's 

interest; or

(2) the contractor defaults in performing this contract and fails to cure the 

default within 10 days (unless extended by the contracting officer) after 

receiving a notice specifying the default. "Default" includes failure to make 

progress in the work so as to endanger performance.

(b) The contracting officer will terminate by delivering to the contractor a notice of 

termination specifying whether termination is for default of the contractor or for 

convenience of the judiciary, the extent of termination, and the effective date. If, 

after termination for default, it is determined that the contractor was not in default 

or that the contractor's failure to perform or to make progress in performance is 

due to causes beyond the control and without the fault or negligence of the 

contractor as set forth in the Excusable Delays clause, the rights and obligations 

of the parties will be the same as if the termination was for the convenience of 

the judiciary.

(c) 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), 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 judiciary, as directed by the contracting officer, all right, title, 

and interest of the contractor under the subcontracts terminated, in which 

case the judiciary will have the right to settle or to pay any termination 

settlement offer arising out of those terminations;

(5) with written approval or ratification to the extent required by the 

contracting officer, settle all outstanding liabilities and termination 

settlement offers arising from the termination of subcontracts, the cost of 

which would be reimbursable in whole or in part, under this contract; 

written approval or ratification will be final for purposes of this clause;

(6) transfer title (if not already transferred) and, as directed by the contracting 

officer, deliver to the judiciary:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-41

(i) the fabricated or unfabricated parts, work in process, completed 

work, products, and other material produced or acquired for the 

work terminated;

(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 judiciary; and

(iii) the jigs, dies, fixtures, and other special tools and tooling acquired 

or manufactured for this contract, the cost of which the contractor 

has been or will be reimbursed under this contract;

(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 the property related to this 

contract that is in the possession of the contractor and in which the 

judiciary has or may acquire an interest; and

(9) use its best efforts to sell, as directed or authorized by the contracting 

officer, any property of the types referred to in paragraph (c)(6) of this 

clause; 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 in writing by the 

contracting officer. The proceeds of any transfer or disposition will be 

applied to reduce any payments to be made by the judiciary under this 

contract, credited to the price or cost of the work, or paid in any other 

manner directed by the contracting officer.

(d) The contractor shall submit complete termination inventory schedules no later 

than 120 days from the effective date of termination, unless extended in writing 

by the contracting officer upon written request of the contractor within this 120-

day period.

(e) After expiration of the plant clearance period, the contractor may submit to the 

contracting officer a list, certified as to quantity and quality, of termination 

inventory not previously disposed of, excluding items authorized for disposition 

by the contracting officer. The contractor may request the judiciary to remove 

those items or enter into an agreement for their storage. Within 15 days, the 

judiciary will accept the items and remove them or enter into a storage 

agreement. The contracting officer may verify the list upon removal of the items, 

or if stored, within 45 days from submission of the list, and will correct the list, as 

necessary, before final settlement.

(f) After termination, the contractor shall submit a final termination settlement offer 

to the contracting officer in the form and with the certification prescribed by the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-42

contracting officer. The contractor shall submit the offer promptly, but no later 

than 1 year from the effective date of termination, unless extended in writing by 

the contracting officer upon written request of the contractor within this 1-year 

period. However, if the contracting officer determines that the facts justify it, a 

termination settlement offer may be received and acted on after 1 year or any 

extension. If the contractor fails to submit the offer 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 will pay the 

amount determined.

(g) Subject to paragraph (f) of this clause, the contractor and the contracting officer 

may agree on the whole or any part of the amount to be paid (including an 

allowance for fee) because of the termination. The contract will be amended, 

and the contractor paid the agreed amount.

(h) If the contractor and the contracting officer fail to agree in whole or in part on the 

amount of costs and/or fee to be paid because of the termination of work, the 

contracting officer will determine, on the basis of information available, the 

amount, if any, due the contractor, and will pay that amount, which will include 

the following:

(1) all costs reimbursable under this contract, not previously paid, for the 

performance of this contract before the effective date of the termination, 

and those costs that may continue for a reasonable time with the written 

approval of or as directed by the contracting officer; however, the 

contractor shall discontinue those costs as rapidly as practicable;

(2) the cost of settling and paying termination settlement offers under 

terminated subcontracts that are properly chargeable to the terminated 

portion of the contract if not included in paragraph (h)(1) of this clause;

(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 offers and 

supporting data;

(ii) the termination and settlement of subcontracts (excluding the 

amounts of such settlements); and

(iii) storage, transportation, and other costs incurred, reasonably 

necessary for the preservation, protection, or disposition of the 

termination inventory. If the termination is for default, no amounts 

for the preparation of the contractor's termination settlement offer 

may be included;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-43

(4) a portion of the fee payable under the contract, determined as follows:

(i) if the contract is terminated for the convenience of the judiciary, the 

settlement will include a percentage of the fee equal to the 

percentage of completion of work contemplated under the contract, 

but excluding subcontract effort included in subcontractors' 

termination offers, less previous payments for fee;

(ii) if the contract is terminated for default, the total fee payable will be

such proportionate part of the fee as the total number of articles (or 

amount of services) delivered to and accepted by the judiciary is to 

the total number of articles (or amount of services) of a like kind 

required by the contract.

(5) If the settlement includes only fee, it will be determined under paragraph 

(h)(4) of this clause.

(i) The cost principles and procedures in effect on the date of this contract, will 

govern all costs claimed, agreed to, or determined under this clause.

(j) The contractor shall have the right of appeal, under the Disputes clause, from 

any determination made by the contracting officer under paragraph (f), (h), or (l) 

of this clause, except that if the contractor failed to submit the termination 

settlement offer within the time provided in paragraph (f) and failed to request a 

time extension, there is no right of appeal. If the contracting officer has made a 

determination of the amount due under paragraph (f), (h) or (l) of this clause, the 

judiciary will 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.

(k) In arriving at the amount due the contractor under this clause, there will be 

deducted:

(1) all unliquidated advance or other payments to the contractor, under the 

terminated portion of this contract;

(2) any claim which the judiciary has against the contractor under this 

contract; and

(3) the agreed price for, or the proceeds of sale of materials, products, or 

other things acquired by the contractor or sold under this clause and not 

recovered by or credited to the judiciary.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-44

(l) The contractor and contracting officer shall agree to any equitable adjustment in 

fee for the continued portion of the contract when there is a partial termination. 

The contracting officer will amend the contract to reflect the agreement.

(m) (1) The judiciary may, under the terms and conditions it prescribes, make 

partial payments and payments against costs incurred by the contractor 

for the terminated portion of the contract, 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 judiciary upon demand, together 

with interest computed at the rate established by the Secretary of the 

Treasury under the criteria established by the Renegotiation Act of 1971 

(P.L. 92-41, 85 Stat. 97), and published at 

https://www.fiscal.treasury.gov/prompt-payment/. Interest will be 

computed for the period from the date the excess payment is received by 

the contractor to the date the excess is repaid. Interest will not be 

charged on any excess payment due to a reduction in the contractor's 

termination settlement offer 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.

(n) The provisions of this clause relating to fee are inapplicable if this contract does 

not include a fee.

(end)

Alternate I (APR 2013): As prescribed in § 755.20.60(d) (Clauses), substitute the 

following paragraphs (h) and (l) for paragraphs (h) and (l) of the basic Clause 7-225.

(h) If the contractor and the contracting officer fail to agree in whole or in part on the 

amount to be paid because of the termination of work, the contracting officer will 

determine, on the basis of information available, the amount, if any, due the 

contractor and will pay the amount determined as follows:

(1) If the termination is for the convenience of the judiciary, include:

(i) an amount for direct labor hours (as defined in the contract) 

determined by multiplying the number of direct labor hours 

expended before the effective date of termination by the hourly 

rate(s) in the contract, less any hourly rate payments already made 

to the contractor;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-45

(ii) an amount (computed under the provisions for payment of 

materials) for material expenses incurred before the effective date 

of termination, not previously paid to the contractor;

(iii) an amount for labor and material expenses computed as if the 

expenses were incurred before the effective date of termination, if 

they are reasonably incurred after the effective date, with the 

approval of or as directed by the contracting officer; however, the 

contractor shall discontinue these expenses as rapidly as 

practicable;

(iv) if not included in subdivision (h)(1)(i), (ii), or (iii) of this clause, the 

cost of settling and paying termination settlement proposals under 

terminated subcontracts that are properly chargeable to the 

terminated portion of the contract; and

(v) the reasonable costs of settlement of the work terminated; 

including:

(A) accounting, legal, clerical, and other expenses reasonably 

necessary for the preparation of termination settlement 

proposals and supporting data;

(B) the termination and settlement of subcontracts (excluding 

the amounts of such settlements); and

(C) storage, transportation, and other costs incurred, reasonably 

necessary for the protection or disposition of the termination 

inventory.

(2) If the termination is for default of the contractor, include the amounts 

computed under paragraph (h)(1) of this clause but omit:

(i) any amount for preparation of the contractor’s termination 

settlement proposal; and

(ii) the portion of the hourly rate allocable to profit for any direct labor 

hours expended in furnishing materials and services not delivered 

to and accepted by the judiciary.

(l) If the termination is partial, the contractor may file with the contracting officer a 

proposal for an equitable adjustment of price(s) for the continued portion of the 

contract. The contracting officer will 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.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-46

Clause 7-230, Termination for Default (Fixed-Price – Products and Services)

Include the following clause as prescribed in § 755.25.60(a) (Clause).

Termination for Default (Fixed-Price – Products and Services) (JAN 

2003)

(a) (1) The judiciary may, subject to paragraphs (c) and (d) of this clause, by 

written notice of default to the contractor, terminate this contract in whole 

or in part if the contractor fails to:

(i) deliver the products or to perform the services within the time 

specified in this contract or any extension;

(ii) make progress, so as to endanger performance of this contract (but 

see paragraph (a)(2) of this clause); or

(iii) perform any of the other provisions of this contract (but see

paragraph (a)(2) of this clause).

(2) The judiciary's right to terminate this contract under subdivisions (a)(1)(ii) 

and (1)(iii) of this clause, may be exercised if the contractor does not cure 

the failure within 10 days (or more if authorized in writing by the 

contracting officer) after receipt of the notice from the contracting officer 

specifying the failure.

(b) If the judiciary terminates this contract in whole or in part, it may acquire, under 

the terms and in the manner the contracting officer considers appropriate, 

products or services similar to those terminated, and the contractor will be liable 

to the judiciary for any excess costs for those products 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 the contract arises from causes 

beyond the control and without the fault or negligence of the contractor. 

Examples of such causes include (1) acts of God or of the public enemy, (2) acts 

of the government in its sovereign capacity or of the judiciary in its contractual 

capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions, (7) 

strikes, (8) freight embargoes, and (9) unusually severe weather. In each 

instance the failure to perform shall 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 

not be liable for any excess costs for failure to perform, unless the subcontracted 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-47

products or services were obtainable from other sources in sufficient time for the 

contractor to meet the required delivery schedule.

(e) If this contract is terminated for default, the judiciary may require the contractor to 

transfer title and deliver to the judiciary, as directed by the contracting officer, any 

(1) completed products, and (2) partially completed products, 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 of this 

contract. Upon direction of the contracting officer, the contractor shall also 

protect and preserve property in its possession in which the judiciary has an 

interest.

(f) The judiciary will pay the contract price for completed products delivered and 

accepted. The contractor and contracting officer will 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 judiciary may withhold from these amounts any 

sum the contracting officer determines to be necessary to protect the judiciary 

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 delay was excusable, the rights and obligations of the parties will be the 

same as if the termination had been issued for the convenience of the judiciary.

(h) The rights and remedies of the judiciary in this clause are in addition to any other 

rights and remedies provided by law or under this contract.

(end)

Clause 7-235, Disputes

Include the following clause as prescribed in § 750.20.70 (Clause).

Disputes (JAN 2003)

(a) A contract dispute means a written claim, demand or assertion by a contracting 

party for the payment of money in a sum certain, the adjustment or interpretation 

of contract terms, or other specific relief arising under or relating to the contract. 

A dispute also includes a termination for convenience settlement proposal and 

any request for an equitable adjustment, which is denied. A voucher, invoice, or 

other routine payment that is not disputed by the parties is not a dispute under 

this clause.

(b) A contract dispute shall be filed within 12 months of its accrual and shall be 

submitted in writing to the contracting officer. The dispute shall contain a 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-48

detailed statement of the legal and factual basis of the dispute and shall be 

accompanied by any documents that support the claim. The claimant shall seek 

specific relief, as provided in paragraph (a) above. However, the time periods set 

forth here shall be superseded if the contract contains specific provisions for the 

processing of any claim which would otherwise be considered a dispute under 

this clause.

(c) Contracting officers are authorized to decide or settle all disputes under this 

clause. If the contracting officer requires additional information the contracting 

officer shall promptly request the claimant to provide such information. The 

contracting officer will issue a written determination within 60 days of the receipt 

of all the requested information from the claimant. If the contracting officer is 

unable to render a determination within 60 days, the claimant shall be notified of 

the date on which a determination will be made. The determination of the 

contracting officer shall be considered the final determination of the judiciary.

(d) The contractor shall proceed diligently with performance of this contract pending 

resolution of the dispute. The contractor shall comply with the final determination 

of the contracting officer unless such determination is overturned by a court of 

competent jurisdiction. Failure to diligently continue contract performance during 

the pendency of the claim or failure to comply with the final determination of the 

contracting officer may result in termination of the contract for default or 

imposition of other available remedies.

(end)