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47QSMD20R0001 Refresh: 0009 Section III A. Terms and Conditions Related to Schedule Contract Administration <br />involved beginning on the due date and ending on — <br />(A) The date on which the designated office receives payment from the <br />Contractor; <br />(B) The date of issuance of an Government check to the Contractor from which an <br />amount otherwise payable has been withheld as a credit against the contract debt; <br />or <br />(C) The date on which an amount withheld and applied to the contract debt would <br />otherwise have become payable to the Contractor. <br />(vii) The interest charge made under this clause may be reduced under the procedures <br />prescribed in 32.608-2 of the Federal Acquisition Regulation in effect on the date of this <br />contract. <br />0) Risk of loss. Unless the contract specifically provides otherwise, risk of loss or damage to the <br />supplies provided under this contract shall remain with the Contractor until, and shall pass to the <br />Government upon: <br />(1) Delivery of the supplies to a carrier, if transportation is f.o.b. origin; or <br />(2) Delivery of the supplies to the Government at the destination specified in the contract, if <br />transportation is f.o.b. destination. <br />(k) Taxes. The contract price includes all applicable Federal, State, and local taxes and duties. <br />(1) Termination fbr the Government's convenience. The Govemmentreserves the right to terminate this <br />contract, or any part hereof, for its sole convenience. In the event of such termination, the Contractor <br />shall immediately stop all work hereunder and shall immediately cause any and all of its suppliers and <br />subcontractors to cease work. Subject to the terms of this contract, the Contractor shall be paid a <br />percentage of the contract price reflecting the percentage of the work performed prior to the notice of <br />termination, plus reasonable charges the Contractor can demonstrate to the satisfaction of the <br />Government using its standard record keeping system, have resulted from the termination. The <br />Contractor shall not be required to comply with the cost accounting standards or contract cost principles <br />for this purpose. This paragraph does not give the Government any right to audit the Contractor's <br />records. The Contractor shall not be paid for any work performed or costs incurred which reasonably <br />could have been avoided. <br />(m) Termination fbr cause. The Government may terminate this contract, or any part hereof, for cause <br />in the event of any default by the Contractor, or if the Contractor fails to comply with any contract <br />terms and conditions, or fails to provide the Government, upon request, with adequate assurances of <br />future performance. In the event of termination for cause, the Government shall not be liable to the <br />Contractor for any amount for supplies or services not accepted, and the Contractor shall be liable to the <br />Government for any and all rights and remedies provided by law. If it is determined that the <br />Government improperly terminated this contract for default, such termination shall be deemed a <br />termination for convenience. <br />(n) Title. Unless specified elsewhere in this contract, title to items furnished under this contract shall <br />pass to the Government upon acceptance, regardless of when or where the Government takes physical <br />possession. <br />(o) Warranty. The Contractor warrants and implies that the items delivered hereunder are merchantable <br />and fit for use for the particular purpose described in this contract. <br />(p) Limitation of liability. Except as otherwise provided by an express warranty, the Contractor will not <br />be liable to the Government for consequential damages resulting from any defect or deficiencies in <br />accepted items. <br />Page: 83 of 141 <br />