AAWSAP Solicitation and Original Order, September 2008

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I . 24
52 . 203-1
(52 . 203-1) [RESERVED]
I . 25
52 . 203-10
PRICE OR FEE ADJUSTMENT FOR I LLEGAL OR IMPROPER ACTIVITY (JAN 1997)
(a) The Government , at its election, may reduce t he price of a
fixed-price type contract and the
total cost and fee under a
cost-type contract by the amount of profit or fee determined as
set
forth in paragraph (b) of this clause if t he head of the contracting activity or designee determines
that there was a
violation of subsection 27(a) , (b) , or (c ) of the Office of Federal Procurement
Policy Act , as amended (41 O. S. C. 423) , as
i mplemented i n section 3 . 104 of the Federal Acquisition
Regulation .
(b) The price or fee reduction referred to i n paragraph (a ) of this clause shall be-­
(1 ) For cost-plus-fi xed­ fee cont racts, the amount of the fee
specified in the contract at the
time of award;
(2) For cost- plus-incentive- fee contracts, the t arget fee
speci fied in t he contr act at t he t i me
of award,
notwithstanding any minimum fee or "fee floor '' specified in the contract ;
(3) For cost- plus - award- fee cont racts-­
(i) The base fee established in the contract at the time of contract award;
(ii) I f no base fee is specifi ed i n t he contract, 30 percent of the amount of each award
fee otherwise payable to t he Contractor for each award fee evaluation period or at each award fee
determination point .
(4 ) For fixed-price- incentive contracts , the Government may-­
(i) Reduce the contract target price and contract target profit both by an amount equal to the
i nitial target profit specified in the contract at the time of cont ract award; or
(5 ) For firm-fixed-price contracts, by 10 percent of the initial contract price or a profit
amount determined by the Contracting Officer from records or documents i n existence prior to the
date of the contract award.
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(ii) If an immediate adjustment to the contract target price and contract target profit would
have a
significant adverse i mpact on the incentive price revision relationship under the contract,
or adversely affect the contract financing provisi ons , the Contracting Officer may defer such
adjustment until establishment of the total final price of the contract . The total final price
establi shed i n
accordance with the i ncenti ve price revisi on
pr ovi sions of t he contract shall be
reduced by an amount equal to the initial target profit specified in the contract at the time of
contract award and such reduced pri ce shall be the t otal f i nal contract pri ce .
(c) The Government may, at its election, reduce a prime
contractor ' ' s price or fee in accordance
with the procedures of paragraph (b) of t his clause f or vi olations of the Act by i ts subcontractors
by an amount not to exceed the amount of profit or fee reflected in the subcontract at the time the
subcontract
was first definitively priced.
(d ) In addition to the remedies in paragraphs (a ) and (c ) of this c l ause, the Government may
terminate this contract for default . The rights and remedies of the Government specified herein are
not exclusive, and are in addition to any other rights
and remedies provided by law or under this
contract .
I . 26
52 . 203- 12
LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEP 2007)
(a ) Definitions. As use d in this clause-­
"Agency" means "executive agency " as defined in Federal Acquisition Regulation (FAR) 2 . 101 .
"Covered Federal action" means any of the fol lowi ng actions :
(1) Awarding any Federal contract .
(2 ) Making any Federal grant .
(3 ) Making any Federal loan .
(4 ) Entering into any cooperative agreement .
"Indi an tribe" and "tribal organization" have the meaning provided in section 4 of the Indian Sel f ­
Determination and Education Assistance Act
(25 u.s.c. 450b) and i nclude Alaskan Natives .
(5) Extending, conti nuing, renewing, amending, or modifying any Federal contract, grant , l oan, or
cooperative agreement .
"Influenci ng or attempti ng t o influence" means making, with the intent to influence, any
communi cation to or appearance before an officer or employee of any agency, a Member of Congress,
an offi cer or empl oyee of Congress , or an empl oyee of a Member of Congress in connect i on with any
covered Federal
action .
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