[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR1274.509]



[Page 482-483]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

PART 1274_COOPERATIVE AGREEMENTS WITH COMMERCIAL FIRMS--Table of Contents

 

                  Subpart 1274.5_Procurement Standards

 

Sec. 1274.509  Contract provisions.



    The recipient shall include, in addition to provisions to define a 

sound and complete agreement, the following provisions in all contracts. 

The following provisions shall also be applied to subcontracts:

    (a) Contracts in excess of the simplified acquisition threshold 

(currently $100,000) shall contain contractual provisions or conditions 

that allow for administrative, contractual, or legal remedies in 

instances in which a contractor violates or breaches the contract terms, 

and provide for such remedial actions as may be appropriate.

    (b) All contracts in excess of the simplified acquisition threshold 

shall contain suitable provisions for termination by the recipient, 

including the manner by which termination shall be effected and the 

basis for settlement. In addition, such contracts shall describe 

conditions under which the contract may be terminated for default as 

well as conditions where the contract may be terminated because of 

circumstances beyond the control of the contractor.

    (c) All negotiated contracts (except those for less than the 

simplified acquisition threshold) awarded by recipients shall include a 

provision to the effect that the recipient, NASA, the Comptroller 

General of the United States, or any of their duly authorized 

representatives, shall have access to any books, documents, papers and 

records of the contractor which are directly pertinent to a specific 

program for the purpose of making audits, examinations, excerpts and 

transcriptions.

    (d) For Construction and facility improvements, except as otherwise 

required by statute, an award that requires the contracting (or 

subcontracting) for construction or facility improvements shall provide 

for the recipient to follow its own requirements relating to bid 

guarantees, performance bonds, and payment bonds unless the construction 

contract or subcontract exceeds $100,000. For those contracts or 

subcontracts exceeding $100,000, NASA may accept the bonding policy and 

requirements of the recipient, provided NASA has made a determination 

that the Federal Government's interest is adequately protected. If such 

a determination has not



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been made, the minimum requirements shall be as follows:

    (1) A bid guarantee from each bidder equivalent to five percent of 

the bid price. The ``bid guarantee'' shall consist of a firm commitment 

such as a bid bond, certified check, or other negotiable instrument 

accompanying a bid as assurance that the bidder shall, upon acceptance 

of his bid, execute such contractual documents as may be required within 

the time specified.

    (2) A performance bond on the part of the contractor for 100 percent 

of the contract price. A ``performance bond'' is one executed in 

connection with a contract to secure fulfillment of all the contractor's 

obligations under such contract.

    (3) A payment bond on the part of the contractor for 100 percent of 

the contract price. A ``payment bond'' is one executed in connection 

with a contract to assure payment as required by statute of all persons 

supplying labor and material in the execution of the work provided for 

in the contract.

    (4) Where bonds are required in the situations described in this 

section, the bonds shall be obtained from companies holding certificates 

of authority as acceptable sureties pursuant to 31 CFR part 223, 

``Surety companies doing business with the United States.''