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drug is being used for investigational purposes. The written consent of the subjects, or their representatives shall be obtained except where this is not feasible or, in the responsible investigator's professional judgment, is contrary to the best interests of the subject. When the purpose of administering an investigational drug is not to benefit the individual to whom it is administered, final approval for the use of volunteer subjects shall be obtained as provided in paragraph 6, AR 70-25. Benefit to the individual is defined as the administration of a drug to an individual expected to result in the diagnosis, mitigation, treatment, cure, or prevention of disease or injury of the same individual.

Subpart B-Clauses for Cost-Reimbursement Type Supply Contracts

§ 597.203 Required clauses.

§ 597.203-1 Definitions.

Instructions in § 597.103-1 apply.

§ 597.203-2 Changes.

Instructions in § 597.103-2 apply.

§ 597.203-5 Inspection of supplies and correction of defects.

Appropriate language to accomplish the requirements in § 597.103-5 shall be included in solicitations and resultant contracts.

§ 597.203-6 Assignment of claims. Instructions in § 597.103-8 apply.

§ 597.203-12 Disputes.

Instructions in § 597.103-12 apply.

§ 597.205 Additional clauses.

The clauses set forth in § 7.205 of this title may be used in accordance with instructions therein when it is desired to cover the subject matter thereof in contracts.

[37 FR 25926, Dec. 6, 1972]

§ 597.250 Medical services at Governmentowned contractor-operated installations.

The following clauses shall be included in all contracts at Governmentowned contractor-operated installations

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597.703-20 Disputes.

Instructions in § 597.103-12 apply.

597.703-29 Assignment of claims. ■ Instructions in § 597.103-8 apply.

597.704 Required clauses for facilities use contracts.

597.704-1 Definitions.

Instructions in § 597.103-1 apply.

597.704-18 Period of this contract. Instructions in § 597.702-25 apply.

597.704-21 Disputes.

* Instructions in § 597.103-12 apply.

597.704-23 Assignment of claims. Instructions in § 597.103-8 apply. 597.706 Facilities use contracts with nonprofit educational institutions.

§ 597.706-3 Definitions.

Instructions in § 597.103-1 apply. § 597.706-16 Period of this contract. Instructions in § 597.702-25 apply.

§ 597.706-18 Disputes.

Instructions in § 597.103-12 apply.

Subpart H-[Reserved]

Subpart I-Clauses for Time and Material and Labor Hour Contracts

§ 597.901 Required clauses.

§ 597.901-1 Definitions.

Instructions in § 597.103-1 apply.

§ 597.901-2 Changes.

Instructions in § 597.103-2 apply. § 597.901-7 Assignment of claims. Instructions in § 597.103-8 apply. § 597.901-8 Disputes.

Instructions in § 597.103-12 apply.

§ 597.901-21 Inspection and correction of defects.

Appropriate language to accomplish the requirements in § 597.103-5 shall

be included in solicitations and resultant contracts.

Subparts J-K-[Reserved]

Subpart L-Clauses for Mortuary Services Contracts

§ 597.1201 Required clauses for other than port of entry requirements contracts.

§ 597.1201-4 Specifications.

The specifications referenced in § 7.1201-4 of this title are contained in appendix IV, AR 638-40.

Subparts M-R-[Reserved]

Subpart S-Clauses for Service Contracts

SOURCE: 37 FR 25926, Dec. 6, 1972, unless otherwise noted.

§ 597.1902 Required clauses for fixed price service contracts.

§ 597.1902-1 Definitions.

Instructions in § 597.103-1 apply. § 597.1902-2 Changes.

Instructions in § 597.103-2 apply. § 597.1902-6 Assignment of claims. Instructions in § 597.103-8 apply.

§ 597.1902-9 Disputes.

Instructions in § 597.103-12 apply.

§ 597.1904 Additional clauses for use in fixed price service contracts.

The clauses set forth in § 7.1904 of this title may be used in accordance with instructions therein when it is desired to cover the subject matter thereof in contracts.

§ 597.1909 Required clauses for cost reimbursement type service contracts.

§ 597.1909-1 Definitions.

Instructions in § 597.103-1 apply.

§ 597.1909-2 Changes.

Instructions in § 597.103-2 apply.

§ 597.1909-6 Assignment of claims. Instructions in § 597.103-8 apply.

§ 597.1909-11 Disputes.

Instructions in § 597.103-12 apply.

§ 597.1911 Additional clauses for use in cost reimbursement service contracts. The clauses set forth in § 7.1911 of this title may be used in accordance with instructions therein when it is desired to cover the subject matter thereof in contracts.

PART 598-TERMINATION OF CONTRACTS

Subpart A-[Reserved]

Subpart B-General Principles Applicable to the Settlement of Fixed-Price Type Contracts Terminated for Convenience and to the Settlement of All Terminated Cost-Reimbursement Type Contracts

Sec.

598.201 Authority of contracting officers. 598.202 Prior clearance of significant contract terminations.

598.212 Review and approval of proposed settlements.

598.212-4 Action by Board.

Subpart C-Additional Principles Applicable to the Settlement of Terminated Fixed-Price Contracts

598.307 Settlement proposals. 598.307-2 Bases for settlement proposals.

Subparts D-E-[Reserved]

Subpart F-Termination for Default 598.602 Termination of fixed-price supply contracts for default.

598.602-3 Procedure for default. 598.650 Contract completion by surety.

AUTHORITY: Secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012. SOURCE: 34 FR 9524, June 18, 1969, unless otherwise noted.

Subpart A-[Reserved]

Subpart B-General Principles Applicable to the Settlement of FixedPrice Type Contracts Terminated for Convenience and to the Settlement of All Terminated Cost-Reimbursement Type Contracts

§ 598.201 Authority of contracting offi

cers.

(a) Procuring contracting officers shall exercise the authority to terminate a contract for convenience of the Government only after proper authorization and instructions from the activity which requested the contract to be established.

(b) Contracting officers shall not terminate contracts for convenience if the contractor is in unexcusable default and the Government has a legal right to terminate for default, even though the Government's requirements for performance no longer exist. This prohibition shall not preclude a no-cost termination settlement agreement as provided in § 8.602–4(c) of this title.

(c) Termination of contracts awarded as a result of a MIPR shall be in accordance with § 5.1112 of this title.

§ 598.202 Prior clearance of significant contract terminations.

Reports Control Symbol SAOSA-62 has been assigned the reporting requirement in § 8.202 of this title for purchasing offices within the Department of the Army. This report does not apply to overseas contracts.

[36 FR 8948, May 15, 1971]

§ 598.212 Review and approval of proposed settlements.

§ 598.212-4 Action by Board.

(a) All actions by a Settlement Review Board shall be taken at duly constituted meetings of the Board. The written opinion of the Board setting forth its approval or disapproval of a proposed settlement shall be signed by each Board member present. The written opinion shall not be a repetition of the contracting officer's memorandum but shall contain all

pertinent facts which prompted the Board's approval or disapproval.

(b) A proposed settlement which was reached by mutual agreement, if disapproved by the Board, shall be returned to the contracting officer for further negotiation within the frame work of the Board's opinion. Upon conclusion of further negotiation, the new proposed settlement shall be submitted to the Board for further consideration.

(c) A proposed settlement which resulted from the contracting officer's redetermination, if disapproved by the Board, shall be returned to the contracting officer for redetermination or negotiation and resubmission to the Board.

(d) Except as provided in § 8.212-4 of this title, the contracting officer may not proceed with a proposed settlement until approval of the Settlement Review Board has been obtained.

Subpart C-Additional Principles Applicable to the Settlement of Terminated Fixed-Price Contracts

§ 598.307 Settlement proposals.

§ 598.307-2 Bases for settlement proposals.

Requests for approval of the Secretary of the Army for the use of bases other than inventory or total cost in a termination claim shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter.

Subparts D-E-[Reserved]

Subpart F-Termination for Default

§ 598.602 Termination of fixed-price supply contracts for default.

§ 598.602-3 Procedure for default.

(a) Contracts which involve outstanding guaranteed loans, progress payments, or advance payments, except where the contractor is in bankruptcy, shall be terminated for default only after the procuring activity has coordinated the action with the U.S. Army Materiel Command, the U.S. Continental Army Command, or

the Deputy for Materiel Acquisition, Office of the Assistant Secretary of the Army (Installations and Logistics), as applicable. In addition, prior to termination, all such cases except those involving bankruptcy shall be coordinated with the Director of Contract Financing, Office of the Comptroller of the Army [the addressee in § 591.150(b)(5) of this chapter] who shall coordinate when necessary with the contract financing offices of other Military Departments. Cases forwarded shall include the following data(1) Contract number, item, and dollar value;

(2) Government financing outstanding;

(3) Statement as to probable jeopardy to repayment of loans in event of default;

(4) Alternative actions in lieu of default;

(5) Status of deliveries, i.e. scheduled versus actual;

(6) Production problems, if any, and Government assistance furnished to resolve them;

(7) Statement as to whether the contractor was certified by the Small Business Administration;

(8) Date of report "Contractors in Difficulty Authorized Guaranteed Loans, Progress Payments, or Advance Payments," Reports Control Symbol OSD-1477 (see § 163.30 of this title);

(9) Other pertinent information to insure clear understanding of the case; and

(10) Recommendation of the head of procuring activity.

(b) Copies of notices of intent to terminate any small business contractor for default shall be furnished the nearest Regional Office of the Small Business Administration [SBA] after coordination with the Small Business and Labor Surplus Adviser serving the purchasing office. The SBA Regional Office will determine whether the contractor has any outstanding loans which were made with SBA's participation or any Certificates of Competency which were issued by SBA. Contracts involving a small business contractor to whom a Certificate of Competency was issued or to whom loans were made with SBA's participation shall not be terminated for default

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