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Terms & Conditions:
THE BOEING COMPANY GENERAL PROVISIONS
(Fixed Price Service Contract)
GP 2 (Rev02/01/2001)
1. FORMATION OF CONTRACT.
This proposed contract is Buyer's offer to purchase the goods and services
("Services") described in this offer. Acceptance is strictly limited
to the terms and conditions included in this offer. Unless specifically
agreed to in writing by Buyer's Authorized Procurement Representative, Buyer
objects to, and is not bound by, any term or condition that differs from
or adds to this offer. Seller's commencement of performance or acceptance
of this offer in any manner shall conclusively evidence acceptance of this
offer as written.
2. SCOPE OF SERVICES.
During the term of this contract, Seller shall furnish the Services set
forth in the contract.
3. INDEPENDENT CONTRACTOR.
Seller is an independent contractor for all purposes. Seller shall have
complete control over the performance of, and the details for accomplishing,
the Services. In no event shall Seller or its agents, representatives
or employees be deemed to be agents, representatives or employees of Buyer.
Seller's employees shall be paid exclusively by Seller for all services
performed. Seller shall comply with all requirements and obligations relating
to such employees under federal, state and local law (or foreign law,
if applicable). Such compliance shall include, but not be limited to,
laws regarding minimum wages, social security, unemployment insurance,
federal and state income taxes and workers' compensation insurance.
4. STANDARDS.
Seller shall assign personnel satisfactory to Buyer. At any time and for
any reason, Buyer may require Seller to withdraw the services of any person
and require that Seller promptly provide replacements for such persons
satisfactory to Buyer. In addition to the other indemnification provisions
within this contract, Seller specifically agrees to indemnify and hold
harmless Buyer from and against any liabilities, claims, charges or suits
for alleged losses, costs, damages or expenses arising from Buyer's exercise
of its rights hereunder.
5. WARRANTY.
Seller warrants
that all Services performed hereunder shall be performed by employees
or agents of Seller who are experienced and skilled in their profession
and in accordance with industry standards. Seller further warrants that
all Services performed under this contract, at the time of acceptance,
shall be free from defects in workmanship and conform to the requirements
of this contract. Buyer shall give written notice of any defect or nonconformance
to Seller within one year from the date of acceptance by Buyer. Buyer
may, at its option, either (a) require correction or reperformance of
any defective or nonconforming services, or (b) make an equitable adjustment
in the price of this contract. If Seller is required to correct or reperform
the Services, such correction or reperformance shall be at Seller's expense.
Any Services corrected or reperformed shall be subject to this article
to the same extent as Services initially performed. If Seller fails or
refuses to correct or reperform, Buyer may correct or replace with similar
services and charge Seller for any cost to Buyer or make an equitable
adjustment in the price of this contract.
6. TAXES.
Unless this contract specifies otherwise, the price of this contract includes,
and Seller is liable for and shall pay, all taxes, impositions, charges
and exactions imposed on or measured by this contract except for applicable
sales and use taxes that are separately stated on Seller's invoice. Prices
shall not include any taxes, impositions, charges or exactions for which
Buyer has furnished a valid exemption certificate or other evidence of
exemption.
7. INVOICE AND PAYMENT.
As compensation for services to be performed by Seller, Buyer shall pay
Seller as set forth in this contract. Buyer shall have no liability for
any other expenses or costs incurred by Seller. Payment due date, including
discount periods, shall be computed from the date of the later of the
scheduled delivery date, the actual delivery date or the date of receipt
of a correct invoice. Payment shall be deemed to have been made on the
date the Buyer's check is mailed or payment is otherwise tendered. Seller
shall promptly repay to Buyer any amounts paid in excess of amounts due
Seller.
8. CHANGES
a. Buyer's Authorized
Procurement Representative may, without notice to sureties and in writing,
direct changes within the general scope of this contract in any of the
following: (i) technical requirements and descriptions, specifications,
statement of work, drawings or designs; (ii) shipment or packing methods;
(iii) place of delivery, inspection or acceptance; (iv) reasonable adjustments
in quantities or delivery schedules or both; (v) amount of Buyer-furnished
property; and, if this contract includes services, (vi) description
of services to be performed; (vii) the time of performance (e.g., hours
of the day, days of the week, etc.); and (viii) place of performance.
Seller shall comply immediately with such direction.
b. If such change increases or decreases the cost or time required to
perform this contract, Buyer and Seller shall negotiate an equitable
adjustment in the price or schedule, or both, to reflect the increase
or decrease. Buyer shall modify this contract in writing accordingly.
Unless otherwise agreed in writing, Seller must assert any claim for
adjustment to Buyer's Authorized Procurement Representative in writing
within 25 days and deliver a fully supported proposal to Buyer's Authorized
Procurement Representative within 60 days after Seller's receipt of
such direction. Buyer may, at its sole discretion, consider any claim
regardless of when asserted. If Seller's proposal includes the cost
of property made obsolete or excess by the change, Buyer may direct
the disposition of the property. Buyer may examine Seller's pertinent
books and records to verify the amount of Seller's claim. Failure of
the parties to agree upon any adjustment shall not excuse Seller from
performing in accordance with Buyer's direction.
c. If Seller considers that Buyer's conduct constitutes a change, Seller
shall notify Buyer's Authorized Procurement Representative immediately
in writing as to the nature of such conduct and its effect upon Seller's
performance. Pending direction from Buyer's Authorized Procurement Representative,
Seller shall take no action to implement any such change.
9. DISPUTES.
Any dispute that arises under or is related to this contract that cannot
be settled by mutual agreement of the parties may be decided by a court
of competent jurisdiction. Pending final resolution of any dispute, Seller
shall proceed with performance of this contract according to Buyer's instructions
so long as Buyer continues to pay amounts not in dispute.
10. FORCE MAJEURE.
Seller shall not be liable for the excess reprocurement costs pursuant
to the "Cancellation for Default" article of this contract incurred
by Buyer 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 Seller. Examples of these causes are (a) acts of God
or of the public enemy, (b) acts of the Government in either its sovereign
or contractual capacity, (c) fires, (d) floods, (e) epidemics, (f) quarantine
restrictions, (g) strikes, (h) freight embargoes and (i) unusually severe
weather. In each instance, the failure to perform must be beyond the control
and without the fault or negligence of Seller. If the delay is caused
by a delay of a subcontractor of Seller and if such delay arises out of
causes beyond the reasonable control of both, and without the fault or
negligence of either, Seller shall not be liable for excess costs unless
the goods or services to be furnished by the subcontractor were obtainable
from other sources in sufficient time to permit Seller to meet the required
delivery schedules. Seller shall notify Buyer in writing within 10 days
after the beginning of any such cause.
11. TERMINATION FOR
CONVENIENCE.
Buyer reserves the right to terminate this contract, or any part hereof,
for its sole convenience. In the event of such termination, Seller shall
immediately cease all work hereunder and shall immediately cause any and
all of its suppliers and subcontractors to cease work. In case of termination
for convenience by Buyer of all or any part of this contract, Seller may
submit a claim to Buyer within 60 days after the effective date of termination.
In no event shall Buyer be obligated to pay Seller any amount in excess
of the contract price. The provisions of this article shall not limit
or affect the right of Buyer to cancel this contract for default.
12. CANCELLATION FOR
DEFAULT
a. Buyer may, by written
notice to Seller, cancel all or part of this contract (i) if Seller
fails to deliver the Services within the time specified by this contract
or any written extension; (ii) if Seller fails to perform any other
provision of this contract or fails to make progress, so as to endanger
performance of this contract, and, in either of these two circumstances,
does not cure the failure within 10 days after receipt of notice from
Buyer specifying the failure; or (iii) in the event of Seller's bankruptcy,
suspension of business, insolvency, appointment of a receiver for Seller's
property or business, or any assignment, reorganization or arrangement
by Seller for the benefit of its creditors.
b. Seller shall continue work not canceled.
13. ASSIGNMENT, DELEGATION
AND SUBCONTRACTING.
Seller shall
not assign any of its rights or interest in this contract or subcontract
all or substantially all of its performance of this contract without Buyer's
prior written consent. Seller shall not delegate any of its duties or
obligations under this contract. Seller may assign its right to monies
due or to become due. No assignment, delegation or subcontracting by Seller,
with or without Buyer's consent, shall relieve Seller of any of its obligations
under this contract or prejudice any of Buyer's rights against Seller
whether arising before or after the date of any assignment. This article
does not limit Seller's ability to purchase standard commercial supplies
or raw materials.
14. INDEMNIFICATION,
INSURANCE AND PROTECTION OF PROPERTY
a. Indemnification
Negligence of Seller or Subcontractor. Seller shall indemnify and hold
harmless The Boeing Company, its subsidiaries, and their directors,
officers, employees and agents from and against all actions, causes
of action, liabilities, claims, suits, judgments, liens, awards and
damages of any kind and nature whatsoever for property damage, personal
injury or death (including without limitation injury to or death of
employees of Seller or any subcontractor thereof) and expenses, costs
of litigation and counsel fees related thereto or incident to establishing
the right to indemnification, arising out of or in any way related to
this contract, the performance thereof by Seller or any subcontractor
thereof or other third parties, including, without limitation, the provision
of services, personnel, facilities, equipment, support, supervision
or review. The foregoing indemnity shall apply only to the extent of
the negligence of Seller, any subcontractor thereof or their respective
employees. In no event shall Seller's obligations hereunder be limited
to the extent of any insurance available to or provided by Seller or
any subcontractor thereof. Seller expressly waives any immunity under
industrial insurance, whether arising out of statute or source, to the
extent of the indemnity set forth in this paragraph (a).
b. Commercial General Liability. If Seller or any subcontractor thereof
will be performing work on Buyer's premises, Seller shall carry and
maintain, and ensure that all subcontractors thereof carry and maintain,
throughout the period when work is performed and until final acceptance
by Buyer, Commercial General Liability insurance with available limits
of not less than one million dollars ($l,000,000) per occurrence for
bodily injury and property damage combined. Such insurance shall contain
coverage for all premises and operations, broad form property damage,
contractual liability (including, without limitation, that specifically
assumed under paragraph (a) herein) and goods and completed-operations
insurance with limits of not less than one million dollars ($1,000,000)
per occurrence for a minimum of 24 months after final acceptance of
the work by Buyer. Such insurance shall not be maintained on a per-project
basis unless the respective Seller or subcontractor thereof does not
have blanket coverage.
c. Automobile Liability. If licensed vehicles will be used in connection
with the performance of the work, Seller shall carry and maintain, and
ensure that any subcontractor thereof who uses a licensed vehicle in
connection with the performance of the work carries and maintains, throughout
the period when work is performed and until final acceptance by Buyer,
Business Automobile Liability insurance covering all vehicles, whether
owned, hired, rented, borrowed or otherwise, with available limits of
not less than one million dollars ($1,000,000) per occurrence combined
single limit for bodily injury and property damage.
d. Workers' Compensation. Throughout the period when work is performed
and until final acceptance by Buyer, Seller shall, and ensure that any
subcontractor thereof shall, cover or maintain insurance in accordance
with the applicable laws relating to Workers' Compensation with respect
to all of their respective employees working on or about Buyer's premises.
If Buyer is required by any applicable law to pay any Workers' Compensation
premiums with respect to an employee of Seller or any subcontractor,
Seller shall reimburse Buyer for such payment.
e. Certificates of Insurance. Prior to commencement of the work, Seller
shall provide for Buyer's review and approval certificates of insurance
reflecting full compliance with the requirements set forth in paragraphs
(b) Commercial General Liability, (c) Automobile Liability and (d) Workers'
Compensation. Such certificates shall be kept current and in compliance
throughout the period when work is being performed and until final acceptance
by Buyer, and shall provide for 30 days advance written notice to Buyer
in the event of cancellation. Failure of Seller or any subcontractor
thereof to furnish certificates of insurance, or to procure and maintain
the insurance required herein or failure of Buyer to request such certificates,
endorsements or other proof of coverage shall not constitute a waiver
of Seller's or subcontractor's obligations hereunder.
f. Self-Assumption. Any self-insured retention, deductibles and exclusions
in coverage in the policies required under this article shall be assumed
by, for the account of and at the sole risk of Seller or the subcontractor
which provides the insurance and to the extent applicable shall be paid
by such Seller or subcontractor. In no event shall the liability of
Seller or any subcontractor thereof be limited to the extent of any
of the minimum limits of insurance required herein.
g. Protection of Property. Seller assumes, and shall ensure that all
subcontractors thereof and their respective employees assume, the risk
of loss or destruction of or damage to any property of such parties
whether owned, hired, rented, borrowed or otherwise. Seller waives,
and shall ensure that any subcontractor thereof and their respective
employees waive, all rights of recovery against Buyer, its subsidiaries
and their respective directors, officers, employees and agents for any
such loss or destruction of or damage to any property of Seller, any
subcontractor or their respective employees.
h. At all times Seller shall, and ensure that any subcontractor thereof
shall, use suitable precautions to prevent damage to Buyer's property.
If any such property is damaged by the fault or negligence of Seller
or any subcontractor thereof, Seller shall, at no cost to Buyer, promptly
and equitably reimburse Buyer for such damage or repair or otherwise
make good such property to Buyer's satisfaction. If Seller fails to
do so, Buyer may do so and recover from Seller the cost thereof.
15. BUYER'S PROPERTY.
Seller shall clearly mark, maintain an inventory of and keep segregated
or identifiable all of Buyer's property and all property to which Buyer
acquires an interest by virtue of this contract. Seller assumes all risk
of loss, destruction or damage of such property while in Seller's possession,
custody or control. Upon request, Seller shall provide Buyer with adequate
proof of insurance against such risk of loss. Seller shall not use such
property other than in performance of this contract without Buyer's prior
written consent. Seller shall notify Buyer's Authorized Procurement Representative
if Buyer's property is lost, damaged or destroyed. As directed by Buyer,
upon completion, termination or cancellation of this contract, Seller
shall deliver such property, to the extent not incorporated in delivered
materials, to Buyer in good condition subject to ordinary wear and tear
and normal manufacturing losses. Nothing in this article limits Seller's
use, in its direct contracts with the Government, of property in which
the Government has an interest.
16. ACCESS TO PLANTS
AND PROPERTIES.
Seller shall comply with all the rules and regulations established by
Buyer for access to and activities in and around premises controlled by
Buyer or Buyer's customer.
17. NOTICE TO BUYER
OF LABOR DISPUTES.
Whenever Seller has knowledge that any actual or potential labor dispute
is delaying or threatens to delay the timely performance of this contract,
Seller shall immediately give notice thereof, including all relevant information,
to Buyer.
18. PATENT, TRADEMARK
AND COPYRIGHT INDEMNITY.
Seller will indemnify, defend and hold harmless Buyer and its customer
from all claims, suits, actions, awards (including, but not limited to,
awards based on intentional infringement of patents known at the time
of such infringement, exceeding actual damages and/or including attorneys'
fees and/or costs), liabilities, damages, costs and attorneys' fees related
to the actual or alleged infringement of any United States or foreign
intellectual property right (including, but not limited to, any right
in a patent, copyright, industrial design or semiconductor mask work,
or based on misappropriation or wrongful use of information or documents)
and arising out of the manufacture, sale or use of products by either
Buyer or its customer. Buyer and/or its customer will duly notify Seller
of any such claim, suit or action; and Seller will, at its own expense,
fully defend such claim, suit or action on behalf of indemnitees. Seller
will have no obligation under this article with regard to any infringement
arising from (a) Seller's compliance with formal specifications issued
by Buyer where infringement could not be avoided in complying with such
specifications or (b) use or sale of products in combination with other
items when such infringement would not have occurred from the use or sale
of those products solely for the purpose for which they were designed
or sold by Seller. For purposes of this article only, the term Buyer will
include The Boeing Company and all Boeing subsidiaries and all officers,
agents and employees of Boeing or any Boeing subsidiary.
19. CONFIDENTIAL,
PROPRIETARY AND TRADE SECRET INFORMATION AND MATERIALS.
Buyer and Seller
shall each keep confidential and protect from unauthorized use and disclosure
all (a) confidential, proprietary and/or trade secret information; (b)
tangible items containing, conveying or embodying such information; and
(c) tooling identified as being subject to this clause and obtained, directly
or indirectly, from the other in connection with this contract or other
agreement referencing this contract (collectively referred to as "Proprietary
Information and Materials"). Buyer and Seller shall each use Proprietary
Information and Materials of the other only in the performance of and
for the purpose of this contract and/or any other agreement referencing
this contract. However, despite any other obligations or restrictions
imposed by this article, Buyer shall have the right to use, disclose and
reproduce Seller's Proprietary Information and Materials, and make derivative
works thereof, for the purposes of testing, certification, use, sale or
support of any product delivered under this contract or any other agreement
referencing this contract. Any such use, disclosure, reproduction or derivative
work by Buyer shall, whenever appropriate, include a restrictive legend
suitable for the particular circumstances. The restrictions on disclosure
or use of Proprietary Information and Materials by Seller shall apply
to all materials derived by Seller or others from Buyer's Proprietary
Information and Materials. Upon Buyer's request at any time, and in any
event upon the completion, termination or cancellation of this contract,
Seller shall return to Buyer all of Buyer's Proprietary Information and
Materials and all materials derived therefrom, unless specifically directed
otherwise in writing by Buyer. Seller shall not, without the prior written
authorization of Buyer, sell or otherwise dispose of (as scrap or otherwise)
any parts or other materials containing, conveying, embodying or made
in accordance with or by reference to any Proprietary Information and
Materials of Buyer. Prior to disposing of such parts or other materials
as scrap, Seller shall render them unusable. Buyer shall have the right
to audit Seller's compliance with this article. Seller may disclose Proprietary
Information and Materials of Buyer to its subcontractors as required for
the performance of this contract, provided that each such subcontractor
first agrees in writing to the same obligations imposed upon Seller under
this article relating to Proprietary Information and Materials. Seller
shall be liable to Buyer for any breach of such obligation by such subcontractor.
The provisions of this article are effective in lieu of any restrictive
legends or notices applied to Proprietary Information and Materials. The
provisions of this article shall survive the performance, completion,
termination or cancellation of this contract.
20. PUBLICITY.
Without Buyer's prior written approval, Seller shall not, and shall require
that its subcontractors at any tier shall not, release any publicity,
advertisement, news release or denial or confirmation of same regarding
this contract or the Services or program to which it pertains. Seller
shall be liable to Buyer for any breach of such obligation by any subcontractor.
21. EVIDENCE OF CITIZENSHIP
OR IMMIGRANT STATUS.
Buyer may be required to obtain information concerning citizenship or
immigrant status of Seller's personnel or Seller's subcontractor personnel
entering the premises of Buyer. Seller agrees to furnish this information
before commencement of work and at any time thereafter before substituting
or adding new personnel to work on Buyer's premises. Information submitted
by Seller shall be certified by an authorized representative of Seller
as being true and correct.
22. GRATUITIES.
Seller warrants that neither it nor any of its employees, agents or representatives
have offered or given, or will offer or give, any gratuities to Buyer's
employees, agents or representatives for the purpose of securing this
contract or securing favorable treatment under this contract.
23. OFFSET CREDITS
a. To the exclusion
of all others, Buyer or its assignees shall be entitled to all industrial
benefits or offset credits which might result from this contract. Seller
shall provide documentation or information which Buyer or its assignees
may reasonably request to substantiate claims for industrial benefits
or offset credits.
b. Seller agrees to use reasonable efforts to identify the foreign content
of goods or services which Seller either produces itself or procures
from subcontractors for work directly related to this contract. Promptly
after selection of a foreign subcontractor for work under this contract,
Seller shall notify Buyer of the name, address, subcontract point of
contact (including telephone number) and dollar value of the subcontract.
24. UTILIZATION OF
SMALL BUSINESS CONCERNS.
Seller agrees to actively seek out and provide the maximum practicable
opportunities for small businesses, small disadvantaged businesses, women-owned
small businesses, minority business enterprises, historically black colleges
and universities and minority institutions, Historically Underutilized
Business Zone small business concerns and US Veteran and Service-Disabled
Veteran Owned small business concerns to participate in the subcontracts
Seller awards to the fullest extent consistent with the efficient performance
of this contract.
25. RIGHTS AND REMEDIES.
Any failures, delays or forbearances of either party in insisting upon
or enforcing any provisions of this contract, or in exercising any rights
or remedies under this contract, shall not be construed as a waiver or
relinquishment of any such provisions, rights or remedies; rather, the
same shall remain in full force and effect. Except as otherwise limited
in this contract, the rights and remedies set forth herein are cumulative
and in addition to any other rights or remedies that the parties may have
at law or in equity. If any provision of this contract is or becomes void
or unenforceable by law, the remainder shall be valid and enforceable.
26. COMPLIANCE WITH
LAWS.
Seller shall comply with all applicable statutes and government rules,
regulations and orders, including those pertaining to United States Export
Controls.
27. GOVERNING LAW.
This contract shall be governed by and construed in accordance with the
laws of the state of Washington. No consideration shall be given to Washington's
conflict of laws rules. This contract excludes the application of the
1980 United Nations Convention on Contracts for the International Sale
of Goods.
28. GOVERNMENT CLAUSES.
Government clauses applicable to this contract are incorporated herein
either by attachment to this document or by some other means of reference.
29. PACKING AND SHIPPING
a. Seller shall pack
the materials to prevent damage and deterioration. Seller shall comply
with carrier tariffs. Unless this contract specifies otherwise, the
price includes shipping charges for materials sold F.O.B. destination.
Unless otherwise specified in this contract, materials sold F.O.B. place
of shipment shall be forwarded collect. Seller shall make no declaration
concerning the value of the materials shipped except on the materials
where the tariff rating is dependent upon released or declared value.
In such event, Seller shall release or declare such value at the maximum
value within the lowest rating. Buyer may charge Seller for damage to
or deterioration of any materials resulting from improper packing or
packaging.
b. Unless this contract specifies otherwise, Seller will ship the materials
in accordance with the following instructions: (i) Shipments by Seller
or its subcontractors must include packing sheets containing Buyer's
contract number, line item number, description and quantity of materials
shipped, part number or size, if applicable, and appropriate evidence
of inspections. A shipment containing hazardous and nonhazardous materials
must have separate packing sheets for the hazardous and nonhazardous
materials. Seller shall not include vermiculite or other hazardous substance
in any packing material included with the Goods. Items shipped on the
same day will be consolidated on one bill of lading or airbill unless
Buyer's Authorized Procurement Representative authorizes otherwise.
The shipping documents will describe the material according to the applicable
classification and/or tariff. The total number of shipping containers
will be referenced on all shipping documents. Originals of all Government
bills of lading will be surrendered to the origin carrier at the time
of shipment. (ii) Seller will not insure any FOB origin shipment unless
authorized by Buyer. (iii) Seller will label each shipping container
with the contract number and the number that each container represents
of the total number being shipped (e.g., box 1 of 2, box 2 of 2). (iv)
Buyer will select the carrier and mode of transportation for all shipments
where freight costs will be charged to Buyer. (v) Seller will include
copies of documentation supporting prepaid freight charges (e.g., carrier
invoices or UPS shipping log/manifest), if any, with its invoices. (vi)
If Seller is unable to comply with the shipping instructions in this
contract, Seller will contact Buyer's Traffic Management Department
referenced elsewhere in this contract or Buyer's Authorized Procurement
Representative.
30. QUALITY CONTROL.
Seller shall establish and maintain a quality control system acceptable
to Buyer for the Services purchased under this contract. Seller shall
permit Buyer to review procedures, practices, processes and related documents
to determine such acceptability.
31. RIGHTS OF BUYER'S
CUSTOMERS AND REGULATORS TO PERFORM INSPECTION, SURVEILLANCE, AND TESTING.
Buyer's rights to perform inspections, surveillance and tests and to review
procedures, practices, processes and related documents related to quality
assurance, quality control, flight safety- and configuration control shall
extend to the customers of Buyer that are departments, agencies or instrumentalities
of the United States Government and to the United States Government Federal
Aviation Administration and any successor agency or instrumentality of
the United States Government. Buyer may also, at Buyer's option, by prior
written notice from Buyer's Authorized Procurement Representative, extend
such rights to other customers of Buyer and to agencies or instrumentalities
of foreign governments equivalent in purpose to the Federal Aviation Administration.
Seller shall cooperate with any such United States Government-directed
or Buyer-directed inspection, surveillance, test or review without additional
charge to Buyer. Nothing in this contract shall be interpreted to limit
United States Government access to Seller's facilities pursuant to law
or regulation.
32. INSPECTION
a. At no additional
cost to Buyer, Services shall be subject to inspection, surveillance
and test at reasonable times and places, including Seller's subcontractors'
locations. Buyer shall perform inspections, surveillance and tests so
as not to unduly delay the work.
b. Seller shall maintain an inspection system acceptable to Buyer for
the Services purchased under this contract.
c. If Buyer performs an inspection or test on the premises of Seller
or its subcontractors, Seller shall furnish, and require its subcontractors
to furnish, without additional charge, reasonable facilities and assistance
for the safe and convenient performance of these duties.
33. ACCEPTANCE.
Buyer shall accept the Services or give Seller notice of rejection within
a reasonable time after delivery, notwithstanding any payment or prior
test or inspection. No inspection, test, delay or failure to inspect or
test or failure to discover any defect or other nonconformance shall relieve
Seller of any of its obligations under this contract or impair any rights
or remedies of Buyer or Buyer's customers.
34. REJECTION
a. If Seller delivers
nonconforming Services, Buyer may require Seller to promptly correct
or replace the nonconforming Services. Redelivery to Buyer of any corrected
or replaced Services shall be at Seller's expense, limited to Seller's
hourly rate as set forth in this contract, excluding that portion of
the rate attributable to profit.
b. In addition Buyer may (i) correct the nonconforming Services or (ii)
obtain replacement Services from another source at Seller's expense.
c. Seller shall not redeliver corrected or rejected Services without
disclosing the former rejection or requirement for correction. Seller
shall disclose any corrective action taken. All repair, replacement
and other correction and redelivery shall be completed within the original
delivery schedule or such later time as Buyer may reasonably direct.
35. SELLER NOTICE
OF DISCREPANCIES.
Seller shall immediately notify Buyer in writing when discrepancies in
Seller's process or materials are discovered or suspected which may affect
the Services delivered or to be delivered under this contract.
36. SCHEDULE
a. Seller shall strictly
adhere to the shipment or delivery schedules specified in this contract.
In the event of any anticipated or actual delay, Seller shall: (i) promptly
notify Buyer in writing of the reasons for the delay and the actions
being taken to overcome or minimize the delay; (ii) provide Buyer with
a written recovery schedule; and (iii), if requested by Buyer, ship
via air or expedited routing to avoid or minimize delay to the maximum
extent possible, unless Seller is excused from prompt performance as
provided in the "Excusable Delays" clause. The added premium
transportation costs are to be borne by Seller.
b. Seller shall not deliver Services prior to the scheduled delivery
dates unless authorized by Buyer.
37. SUSPENSION OF
WORK
a. Buyer's Authorized
Procurement Representative may, by written order, suspend all or part
of the work to be performed under this contract for a period not to
exceed 100 days. Within such period of any suspension of work, Buyer
shall (i) cancel the suspension of work order; (ii) terminate this contract
in accordance with the "Termination for Convenience" article
of this contract; (iii) cancel this contract in accordance with the
"Cancellation for Default" article of this contract; or (iv)
extend the stop work period.
b. Seller shall resume work whenever a suspension is canceled. Buyer
and Seller shall negotiate an equitable adjustment in the price or schedule
or both if (i) this contract is not canceled or terminated; (ii) the
suspension results in a change in Seller's cost of performance or ability
to meet the contract delivery schedule; and (iii) Seller submits a claim
for adjustment within 20 days after the suspension is canceled.
38. ENTIRE AGREEMENT.
This contract
contains the entire agreement of the parties and supersedes any and all
prior agreements, understandings and communications between Buyer and
Seller related to the subject matter of this contract. No amendment or
modification of this contract shall bind either party unless it is in
writing and is signed by Buyer's Authorized Procurement Representative
and an authorized representative of Seller.
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