Terms & Conditions:

Section I - INTRODUCTION

No.

Change Date Effective

Description of Change

12 6/25/03 Section V, Clauses 1025, 1201, 6243 and 6262 have been changed.
11 8/26/02

In Section III, Form MD-1870-41 has been revised.

In Section IV, Forms MD-7128 and MD-7159 have been revised.

Section V, Clause 3510 and 6907 have been added, Clauses 1006, 6003, 6004, 6005, 6006, 6007, 6008, 6230, 6243, 6710, 6711 and 6902 have been changed.

10 8/26/02 In Section II, added Form MDA-TA 26-858, 1-96 version.
    In Section III, Form MD-1870-26, Form MD-1870-41 and Form MD-1870-42 have been added.
    In Section IV, Forms AM0050, AM0051, SP2 and SP3 have been added. Forms MD-1962, MD-1963, MD-1964 and MD-7260 have been revised. Forms MD-1958, MD-1960, MD-1961, MDC 418, MDC 418-1, MDC 450-1 and MDC 450-3 have been deleted.
    In Section V, Clauses 0111, 0180, 1022, 3513, 5003, 6083 and 6406 have been added, Clauses 0015, 0182, 1050, 1083 and 5110 have been changed; and Clauses 0004A, 0122, 1005, 1007, 1010, 1020, 1026, 1080, 1087, 2403, 2406, 3510, 3701, 4103, 4510, 4511, 7001, 7002, 7003, 7004, 7005, 7006, 7010, 7011, 7020, 7021, 7022, 7023, 7024, 7025, 7030, 7031, 7040, 7041, 7042, 7043, 7044, 7045, 7321, 7501, 7502, 7510, 7511, 7701, 7702, 7710, 7711, 7720, 7721, 7730, 7731, 7801, 7810, 7811, and 7910 have been deleted.
9 11/2/01 In Section III, Form MD-1870-40 has been added.
    In Section IV, Form MD-2294 and MD-7079-01 have been revised.
    In Section V, added Clauses 1307, 1308 and 1309, and changed Clauses 6074, 6081, 6082, 6261, 6262 and 6263.
8 8/7/01 In Section V, changed Clauses 1025, 1088 and 7048.
7 4/30/01 In Section II, Revised Forms GP1 and GP4 to the 2/1/01 versions. Added 2/1/01 versions Forms GP2 and GP3.

In Section III, added Forms MD-1870-33, MD-1870-38 and MD-1870-39.

In Section IV, Form MD-7260 has been revised.

In Section V, added Clauses 4105, 6003, 6004, 6005, 6006, 6007 and 6008, and changed Clauses 0430, 1026, 1050, 2101, 6701 and 6732.

6 11/29/00

In Section IV, updated Forms MD-0846-01, MD-1734 and MD-2294-01 and deleted Form MD-7063. Additionally, previous Form MDC 858-12 has been assigned new form number MD-7260.

In Section V, added Clauses 1088 and 1201; changed Clauses 0182, 1050, 1083, 6081, 6310, 6732 and 7910; and deleted Clause 1060.

5

6/29/00

In Section V, added Clause 6732 and changed Clauses 1050 and 6050. Clause 1060 has been deleted and its requirements are now included in Clause 1050. Also, Clause 6903 has been renumbered 1088.

4

4/20/00

In Section III, added Form MD-1870-36.

In Section IV, deleted Forms MD-1951 and MD-1951-01 and replaced them with Form MD-7159. Added several forms referenced in the new Form MD-7159: MD-0846-01, MD-1734, MD-2043, MD-2044 and MD-2294-01. Form MD-2294 has been changed.

Forms MD-7079, MD-7079-01 and MD-7128 have also been added to Section IV.

In Section V, added Clause 6903 and changed Clauses 1025, 5002, 6243, and 6720.

3

9/20/99

Changed paragraphs a. and b.(2) in Article 12, Export Licensing Information/Offshore Procurement, in Form MD-1965.

Changed paragraphs 2.a. and 2.b.(2) in Clause 1025, Additional Contract Terms and Conditions.

2

8/3/99

Added Forms MD-1870-32 through MD-1870-35 in Section III. Changed Forms MD-1870-26, MD-1870-27, and MD-1870-28 in Section III by adding Organizational Conflicts of Interest clause.

Added Forms MD-7079 and MD-7079-01 and changed Form MD-2294 in Section IV.

Changed Clauses 6074, 6211, 6243, 6262, 6263, 6301, 6303, 6306 and 6320 in Section V. Deleted Clauses 6021 through 6041, 6110, 6141 through 6146, 6305, 6501 and 6732 in Section V.

1

2/9/99

Added Clauses 6325, Seller's Product Acceptance Data, and Clauses 1087, Y2K Compliance. Also added system instruction clauses 1303, 1304, 1305 and 1306.

JANUARY 5, 1999

To our Teammates:

Attached is McDonnell Douglas Corporation - Long Beach Facility's latest Edition of its procurement terms and conditions, Manual TA-295, Procurement Solicitation Clauses and Terms & Conditions (commonly referred to as the "Bluebook"). This revision will be downloaded onto the Internet so that the Aircraft & Missles' Long Beach facility's terms and conditions are available to anyone who has access to the Internet. This feature will also have the benefit of adding new requirements and making necessary changes promptly and without having to issue new terms and conditions booklets. The Internet Address is:

http://www.boeing.com/companyoffices/doingbiz/bluebook/

This document contains changes from the prior version. Some of those changes include:

1. Form GP1 has been added as the new general provisions.

2. The General Terms and Conditions, Form DAC-26-685 (Section II) has been changed to:

a. Update the form reference in Article 3;

b. Change the bar coded shipping requirement reference; and

c. Make grammatical correction to Article 25.

3. The General Terms and Conditions, MDA-TA 26-858 (Section II) has been changed to:

a. Change the primary form number to MD-1965;

a. Update the form reference in Article 3;

c. Change Article 12 to conform to the ITAR; and

d. Deletion of all FAR/DFARS/NASA PR clauses. These clauses will be included on the modifications (see Section III) for each prime contract.

4. Form MD-1965-01 (Section II) has been deleted and Form GP4 has been substituted in its place.

5. Form 70-C-33 [MD-1965-02] has been added for those procurements with current B-1B Program suppliers.

6. The modifications for prime contract specific requirements set forth in Section III have been changed to be a comprehensive list of the FAR/DFARS/NASA PR clauses, as well as other special provisions, that are applicable to that particular prime contract.

7. The forms in Section IV have been updated with new "MD" form numbers and arranged in numerical sequence.

8. The following clauses have been added to Section V: 0007, 0182, 1025, 1026, 1086, 1430, 5108, 6405, 6751, 6901 and 6902.

9. The following clauses in Section V have been changed: 0005, 1021, 1040, 1050, 1060, 1061, 1062, 1112, 1113, 1115, 1116, 1420, 1830, 1840, 2502, 3201, 3301, 3512, 4103, 6002, 6010, 6303, 6310, 6720, 7315, 7316, 7317, 7318, 7322, 7323, 7324, 7325, 7501, 7510, 7801, 7810, and 7901. Most of these changes involve the updating references to the General Terms and Conditions/General Provisions or other forms specified in the clause.

10. The following clauses have been deleted from Section V: 0140, 0180, 0510, 0511, 0512, 0513, 1031, 1032, 1081, 1082, 1084 and 2202.

11. While contracts issued using the prior editions of the Bluebook (MDA-TA 26-740 or DAC 26-730) continue to be governed by those terms and conditions (unless amended), this edition shall be applicable to all purchase orders (POs)/contracts executed after the publication date of this Manual.

12. Individual comments should be directed to your MDC purchasing representative