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47QSMD20R0001 Refresh: 0009 Section III A. Terms and Conditions Related to Schedule Contract Administration <br />preceding paragraph (w)(1), the language, provisions, or clause of paragraph (w)(1) shall prevail <br />to the extent of such inconsistency. <br />Note: Regulation 552.212-4 <br />This clause applies to fixed price orders. <br />Begin Regulation <br />552.212-4 CONTRACT TERMS AND CONDITIONS - <br />COMMERCIAL ITEMS (OCT 2018) (DEVIATION - FEB 2018) <br />(ALTERNATE I - JAN 2017) (DEVIATION - FEB 2007) <br />(a) Inspection/Acceptance. <br />(1) The Government has the right to inspect and test all materials furnished and services <br />performed under this contract, to the extent practicable at all places and times, including the <br />period of performance, and in any event before acceptance. The Government may also inspect the <br />plant or plants of the Contractor or any subcontractor engaged in contract performance. The <br />Government will perform inspections and tests in a manner that will not unduly delay the work. <br />(2) If the Government perfornls inspection or tests on the premises of the Contractor or a <br />subcontractor, the Contractor shall furnish and shall require subcontractors to furnish all <br />reasonable facilities and assistance for the safe and convenient performance of these duties. <br />(3) Unless otherwise specified in the contract, the Government will accept or reject services and <br />materials at the place of delivery as promptly as practicable after delivery, and they will be <br />presumed accepted 60 days after the date of delivery, unless accepted earlier. <br />(4) At any time during contract performance, but not later than 6 months (or such other time as <br />may be specified in the contract) after acceptance of the services or materials last delivered under <br />this contract, the Government may require the Contractor to replace or correct services or <br />materials that at time of delivery failed to meet contract requirements. Except as otherwise <br />specified in paragraph (a)(6) of this clause, the cost of replacement or correction shall be <br />determined under paragraph (i) of this clause, but the "hourly rate" for labor hours incurred in the <br />replacement or correction shall be reduced to exclude that portion of the rate attributable to profit. <br />Unless otherwise specified below, the portion of the "hourly rate" attributable to profit shall be 10 <br />percent. The Contractor shall not tender for acceptance materials and services required to be <br />replaced or corrected without disclosing the former requirement for replacement or correction, <br />and, when required, shall disclose the corrective action taken. [Insert portion of labor rate <br />attributable to profit.] <br />(5) (i) If the Contractor fails to proceed with reasonable promptness to perfornl required <br />replacement or correction, and if the replacement or correction can be perfornled within <br />the ceiling price (or the ceiling price as increased by the Government), the Government <br />may <br />(A) By contract or otherwise, perfornl the replacement or correction, charge to the <br />Contractor any increased cost, or deduct such increased cost from any amounts <br />paid or due under this contract; or <br />(B) Terminate this contract for cause. <br />(ii) Failure to agree to the amount of increased cost to be charged to the Contractor shall <br />be a dispute under the Disputes clause of the contract. <br />Page: 87 of 141 <br />