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taken. The head of procuring activity shall insure that the cognizant audit office is notified when corrective action has been completed.

(c) If the circumstances are such as to justify a waiver of accounting requirements, the case shall be prepared and submitted in accordance with AR 735-79.

PART 604-PROCUREMENT QUALITY ASSURANCE

Subparts A-B-[Reserved]

Subpart C-Contract Provisions for Government Procurement Quality Assurance and Acceptance

Sec.

604.306 Acceptance of supplies or services.

Subparts D-F-[Reserved]

Subpart G-Performance of Government Procurement Quality Assurance Actions for Foreign Governments

604.701 General.

Subparts A-B—[Reserved]

Subpart C-Contract Provisions for Government Procurement Quality Assurance and Acceptance

§ 604.306 Acceptance of supplies or services.

(a) Certificates of conformance may be for full or partial performance and may be accepted from prime contractors or from subcontractors provided the subcontractors' certificates are countersigned by a responsible official of the prime contractor.

(b) Certificates of conformance shall include the information below as a minimum

(1) The contract or purchase order number;

(2) A complete nomenclature of supplies together with lot numbers or other identification, and the quantity in each lot or shipment;

(3) For each lot or shipment, analytical results for each test or inspection prescribed by the contract together with required specification limits;

(4) The name of the company and date of the test or inspection; and

(5) The following certification wit] the signature and title of the certify ing official—

The undersigned, individually and as th authorized representative of the Contracto warrants and represents that: All of the ir formation supplied above is true and accu rate; the material covered by this certificat conforms to all the contract requirement (including but not limited to the drawing and specifications); the analysis appearing herein is a true and accurate analysis; and this certificate is made for the purpose of inducing payment and with knowledge that the information and certification may be used as a basis for such payment.

(c) The following clause shall be used in contracts where acceptance precedes inspection

CERTIFICATION ACCEPTANCE (MARCH 1969) Notwithstanding any other provision of the contract, if the supplies for which the Contractor has furnished a certificate of conformance required by the contract are found not to conform to the contract requirements, the Government may, upon notice furnished within a reasonable time after discovery of such nonconformity, reject the supplies and require replacement thereof. Use by the Government of the Contractor's certificate of conformance does not preclude inspection or test or both by the Government. Where a certificate of conformance has been furnished by the Contractor and the Government rejects the supplies, the Contractor shall have the right to request that a reinspection or retest be performed at the Contractor's expense.

(Secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012) [34 FR 9530, June. 18, 1969]

Subparts D-F-[Reserved]

Subpart G-Performance of Government Procurement Quality Assurance Actions for Foreign Governments

8 604.701 General.

Procedures for processing requests from foreign governments or international organizations for inspection of direct procurements placed by them with U.S. producers are contained in AR 715-23.

(Secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012)

34 FR 9530, June. 18, 1969]

PART 605-CONTRACT COST PRINCIPLES AND PROCEDURES

605.050 Uniform application.

Directives, regulations, instructions, or procedures which interpret, expand, or limit the substantive provisions of Part 15 of this title shall not be published by any agency, command, or office of the Department of the Army without prior approval of the Assistant Secretary of the Army (Installations and Logistics). Procedural guidance considered necessary for the orderly conduct of procurement shall be submitted by the Head of Procuring Activity for review and approval by the addressee in § 591.150(b)(6) prior to issuance.

(Secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012) [30 FR 12235, Sept. 24, 1965]

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SOURCE: 34 FR 9531, June 18, 1969, unless otherwise noted.

§ 606.050 Use of procurement forms.

(a) Procurement forms prescribed by ASPR and APP for use in various aspects of procurement shall be used by all purchasing offices without deviation in format, size, or content unless authority to deviate therefrom has been obtained in accordance with § 1.109 of this title and § 591.109 of this chapter. Recommendations for changes in procurement forms may be submitted in accordance with § 591.105 of this chapter.

(b) Local and command forms as defined in AR 310-1, originated for use in various aspects of procurement for which no form is prescribed by ASPR and APP shall conform with the provisions of section II, Forms Management, AR 310-1. Six copies of all local and command forms shall be forwarded upon date of issuance to the addressee in § 591.150(b)(6) of this chapter for consideration for adoption as a DD or DA Form. The forms shall be accompanied by a transmittal letter giving

(1) An explanation as to the purpose and need of each form;

(2) Instructions for preparation of each form; and

(3) Average monthly usage of each form.

§ 606.051 Translations of procurement forms.

To facilitate procurement in foreign countries, authority is granted to reproduce a translation of any procurement form. A bilingual form may be used or the translation may be printed as a separate form. When the foreign language translation is printed as a separate form, it shall be attached to the corresponding approved form printed in English. In either instance the clause in § 3.608-2(b)(2)(ii)(b) of this title shall be included in the schedule.

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(a) DA Form 588, Basic Agreement for Off-Duty Academic Instruction, shall be used for off-duty academic instruction agreements in accordance with instructions in § 594.5407 of this chapter.

(b) DA Form 598, Order Form to Enter Into Contract for Off-Duty Academic Instruction, shall be used for ordering services under Basic Agreements in accordance with instructions in § 594.5407 of this chapter.

[35 FR 8566, June 3, 1970]

§ 606.551 Commercial warehousing and related services for household goods. (a) DD Form 1162, Basic Agreement for Storage of Household Goods and Related Services, shall be used in accordance with instructions in Chapter 10, DOD Regulation 4500.34-R.

(b) DD Form 1164, Service Order for Household Goods, shall be used to place orders under Basic Agreements in accordance with instructions in Chapter 10, DOD Regulation 4500.34R (see also §§ 591.452-1 and 612.651 of this chapter).

[36 FR 8948, May 15, 1971, as amended at 36 FR 20684, Oct. 28, 1971]

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1. This letter constitutes a contract on the terms set forth herein and signifies the intention of the Department to execute a formal cost-reimbursement type contract with you for the delivery of the supplies and the performance of the services as set forth in the enclosure marked "Attachment A," upon the terms and conditions therein stated, which is incorporated in and made a part hereof.

2. You are directed in accordance with the clause entitled, "Execution, Commencement of Work and Priority Rating," to proceed immediately to commence performance of the work, and to pursue such work with all diligence to the end that the supplies may be delivered or services performed within the time specified in Attachment A, or if no time is so specified, at the earliest practicable date. You shall, in addition, obtain such approvals in respect of commitments hereunder as may be specified in Attachment A.

3. In accordance with the clause entitled "Definitization," you shall submit a quotation of the estimated cost to the Government, including fee, for the articles and services covered by this letter. Your quotation shall be supported by a cost breakdown reflecting the factors outlined in the suggested format enclosed, together with a Certificate of Current Cost or Pricing Data (ASPR 3-807.4) and such other information as may be specified herein.

4. In the event of a termination of performance of the work or any part thereof under this letter pursuant to the Termination clause in Attachment A or in the event that the formal contract is not executed you shall be paid in accordance with the provisions of such Termination clause. Your failure to execute a formal contract by reason of unexcusable delay may justify a termination. Your attention is specifically invited to the clause entitled "Limitation of Government Liability."

5. Please indicate your acceptance of the foregoing by signing this letter and returning three executed copies to this office.

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1. This letter constitutes a contract on the terms set forth herein and signifies the intention of the Department to execute a formal fixed-price contract with you for the delivery of the supplies and the performance of the services as set forth in the enclosure marked "Attachment A," upon the terms and conditions therein stated, which is incorporated in and made a part hereof.

2. You are directed in accordance with the clause entitled "Execution, Commencement of Work, and Priority Rating," to proceed immediately to commence performance of the work, and to pursue such work with all diligence to the end that the supplies may be delivered or services performed within the time specified in Attachment A, or if no time is so specified, at the earliest practicable date.

3. In accordance with the clause entitled "Definitization," you shall submit a firm quotation for the articles and services covered by this letter. Your quotation shall be supported by a cost breakdown reflecting the price factors outlined in the suggested format enclosed, together with a Certificate of Current Cost and Pricing Data (ASPR 3807.4), if required, and any other information specified herein.

4. In the event of termination of performance of the work or any part thereof under this letter pursuant to an appropriate clause in Attachment A or in the event that the formal contract is not executed, you shall be paid in accordance with the provisions of such clause. Your failure to execute a

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(a) The format below is prescribed for any lease of Government personal property under the authority of 10 U.S.C. 2667 in cases where Subpart G, Part 7 of this title is not applicable.

(b) Variations in the terms and conditions in the format may be approved by a head of procuring activity to whom the authority to approve leases of Government personal property has been delegated (see § 591.5102(b)(4) of this chapter), but only to the extent that the approval complies with the limitations in the delegation of authority.

(c) For leases executed outside the United States, its possessions, and Puerto Rico, the Disputes clause in § 7.103-12(b) of this title or in § 597.103-12(a) of this chapter, as appropriate, shall be substituted for Article 18, Disputes, of the format below.

Contract No.

LEASE AGREEMENT-GOVERNMENT PERSONAL PROPERTY

DEPARTMENT OF THE ARMY

Lessee and address:
Property to be used at:
Payment:

To be made to

U.S. Army, at

This lease is authorized by 10 U.S.C. 2667. This Lease Agreement, entered into this day of 19 by and be

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2. This lease is subject to the approval of and shall not be binding until so approved. The term of this lease shall commence on the day following the mailing of written notice to the Lessee that the lease has been so approved and that the property is ready for delivery, and shall continue for a period of

(days, month, or years)** or until sooner terminated or revoked in accordance with the provisions hereof.

3. At any time during the term, either party may terminate this lease in whole or in part effective not less than 90 days after receipt by the other party of written notice thereof without further liability to either party. However, the Secretary of the Army may revoke this lease in whole or in part at any time.

4. Upon commencement of the term of this lease, the Lessee shall take possession of the leased property at as is, without warranty, express or implied, on the part of the Government as to condition or fitness for any purpose.

5. The Lessee shall pay rent during the term of this lease at the rate prescribed in Schedule A. The rental accrued at the end of any calendar month, or at the expiration, termination or revocation of this lease, shall be paid to the Government on or before the 10th day thereafter.

6. The Lessee at its own expense shall maintain the property in good condition and repair and make all necessary replacements of components and parts during the term of this lease. All fuel and lubricants shall be

*Delete all lines which do not apply. **Term shall in no event exceed 5 years unless approved by the Secretary.

furnished by the Lessee. The Lessee shall make no changes or alterations in the property except with the written consent of the Contracting Officer.

7. The Lessee shall not mortgage, pledge, assign, transfer, sublet, or part with possession of any of the property in any manner to any third party either directly or indirectly, except that this provision shall not preclude the Lessee from permitting the use of the property by a third party with the prior written approval of the Contracting Officer; and the Lessee shall not do or suffer anything whereby any of the property shall or may be encumbered, seized, taken in execution, attached, destroyed, or injured.

8. After taking possession as provided in clause 4, the Lessee shall be solely responsible for the property until it is returned to the Government as provided for in this lease. The property shall be returned in as good condition as when received, reasonable wear and tear excepted. If the Lessee fails to return the property, the Lessee shall pay to the Government the amount specified in Schedule A as the value of the property less the amount determined by the Contracting Officer to represent reasonable wear and tear for the period during which the property was usable. If the Lessee returns the property in other than as good condition as when received, reasonable wear and tear excepted, the Lessee shall pay to the Govern. ment the amount necessary to place the property in such condition, or if it is determined by the Contracting Officer that the property cannot be placed in such condition, the Lessee shall pay to the Government the amount specified in Schedule A as the value of the property less both the amount determined by the Contracting Officer to represent reasonable wear and tear for the period during which the property was usable and the scrap value of the property.

9. The Lessee shall take all steps necessary to protect the interest of the Government in the property, and the Contracting Officer may require the Lessee, at its own expense, to take such specific measure, including but not limited to the procurement of insurance, as may be necessary to protect such interest.

10. On or before the last day of the term of this lease the Lessee shall return the property to the Government at

or such other place as the Contracting Officer may designate, except that in the event of revocation of this lease the Lessee shall return the property to the Government at the designated place as soon after such revocation as the same can be accomplished. The Lessee shall reimburse the Government immediately upon presentation of a statement thereof, for all packing and handling costs incurred by the Government in per

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