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Legal text for SACC item
Public Works and Government Services Canada
01 Interpretation
02 Standard Clauses and Conditions
03 Powers of Canada
04 Status of the Contractor
05 Conduct of the Work
06 Subcontracts
07 Time of the Essence
08 Excusable Delay
09 Inspection and Acceptance of the Work
10 Invoice Submission
11 Taxes
12 Transportation Costs
13 Payment Period
14 Interest on Overdue Accounts
15 Audit
16 Compliance with Applicable Laws
17 Confidentiality
18 Copyright
19 Government Property
20 Amendment
21 Assignment
22 Suspension of the Work
23 Default by the Contractor
24 Termination for Convenience
25 Right of Set-off
26 Conflict of Interest and Values and Ethics Codes for the Public
Service
27 No Bribe or Conflict
28 Contingency Fees
29 International Sanctions
30 Code of Conduct for Procurement
31 Harassment in the Workplace
32 Entire Agreement
33 Transportation Carriers' Liability
2010B 01 (2008-05-12) Interpretation
In the Contract, unless the context otherwise requires:
"Articles of Agreement" means the clauses and conditions incorporated in
full text or incorporated by reference from the Standard Acquisition
Clauses and Conditions Manual to form the body of the Contract; it does not
include these general conditions, any supplemental general conditions,
annexes, the Contractor's bid or any other document;
"Canada", "Crown", "Her Majesty" or "the Government" means Her Majesty the
Queen in right of Canada as represented by the Minister of Public Works and
Government Services and any other person duly authorized to act on behalf
of that minister or, if applicable, an appropriate minister to whom the
Minister of Public Works and Government Services has delegated his or her
powers, duties or functions and any other person duly authorized to act on
behalf of that minister;
"Contract" means the Articles of Agreement, these general conditions, any
supplemental general conditions, annexes and any other document specified
or referred to as forming part of the Contract, all as amended by agreement
of the Parties from time to time;
"Contracting Authority" means the person designated by that title in the
Contract, or by notice to the Contractor, to act as Canada's representative
to manage the Contract;
"Contractor" means the person, entity or entities named in the Contract to
supply goods, services or both to Canada;
"Contract Price" means the amount stated in the Contract to be payable to
the Contractor for the Work, exclusive of Goods and Services Tax and
Harmonized Sales Tax;
"Cost" means cost determined according to Contract Cost Principles 1031-2
as revised to the date of the bid solicitation or, if there was no bid
solicitation, the date of the Contract;
"Government Property" means anything supplied to the Contractor by or on
behalf of Canada for the purposes of performing the Contract and anything
acquired by the Contractor in any manner in connection with the Work, the
cost of which is paid by Canada under the Contract;
"Party" means Canada, the Contractor, or any other signatory to the
Contract and "Parties" means all of them;
"Work" means all the activities, services, goods, equipment, matters and
things required to be done, delivered or performed by the Contractor under
the Contract.
2010B 02 (2008-05-12) Standard Clauses and Conditions
Pursuant to the Department of Public Works and Government Services Act, S.C.
1996, c. 16, the clauses and conditions identified by number, date and
title in the Contract are incorporated by reference and form part of the
Contract as though expressly set out in the Contract.
2010B 03 (2008-05-12) Powers of Canada
All rights, remedies, powers and discretions granted or acquired by Canada
under the Contract or by law are cumulative, not exclusive.
2010B 04 (2008-05-12) Status of the Contractor
The Contractor is an independent contractor engaged by Canada to perform
the Work. Nothing in the Contract is intended to create a partnership, a
joint venture or an agency between Canada and the other Party or Parties.
The Contractor must not represent itself as an agent or representative of
Canada to anyone. Neither the Contractor nor any of its personnel is
engaged as an employee or agent of Canada. The Contractor is responsible
for all deductions and remittances required by law in relation to its
employees.
2010B 05 (2008-05-12) Conduct of the Work
1. The Contractor represents and warrants that:
(a) it is competent to perform the Work;
(b) it has everything necessary to perform the Work, including
the resources, facilities, labour, technology, equipment, and
materials; and
(c) it has the necessary qualifications, including knowledge,
skill, know-how and experience, and the ability to use them
effectively to perform the Work.
2. The Contractor must:
(a) perform the Work diligently and efficiently;
(b) except for Government Property, supply everything necessary
to perform the Work;
(c) use, as a minimum, quality assurance procedures, inspections
and controls generally used and recognized by the industry to
ensure the degree of quality required by the Contract;
(d) select and employ a sufficient number of qualified people;
(e) perform the Work in accordance with standards of quality
acceptable to Canada and in full conformity with the
Specifications and all the requirements of the Contract;
(f) provide effective and efficient supervision to ensure that
the quality of workmanship meets the requirements of the
Contract.
2010B 06 (2008-05-12) Subcontracts
1. The Contractor may subcontract the supply of goods or services that
are customarily subcontracted by the Contractor. In any other
instance, the Contractor must obtain the prior consent in writing of
the Contracting Authority. The Contracting Authority may require
the Contractor to provide such particulars of the proposed
subcontract as he considers necessary.
2. Subcontracting does not relieve the Contractor from any of its
obligations under the Contract or impose any liability upon Canada
to a subcontractor.
3. In any subcontract, the Contractor agrees to bind the subcontractor
by the same conditions by which the Contractor is bound under the
Contract, unless the Contracting Authority requires or agrees
otherwise.
2010B 07 (2008-05-12) Time of the Essence
It is essential that the Work be performed within or at the time stated in
the Contract.
2010B 08 (2008-05-12) Excusable Delay
1. A delay in the performance by the Contractor of any obligation under
the Contract that is caused by an event that:
(a) is beyond the reasonable control of the Contractor;
(b) could not reasonably have been foreseen;
(c) could not reasonably have been prevented by means reasonably
available to the Contractor; and
(d) occurred without the fault or neglect of the Contractor,
will be considered an "Excusable Delay" if the Contractor advises
the Contracting Authority of the occurrence of the delay or of the
likelihood of the delay as soon as the Contractor becomes aware of
it. The Contractor must also advise the Contracting Authority,
within fifteen (15) working days, of all the circumstances relating
to the delay and provide to the Contracting Authority for approval a
clear work around plan explaining in detail the steps that the
Contractor proposes to take in order to minimize the impact of the
event causing the delay.
2. Any delivery date or other date that is directly affected by an
Excusable Delay will be postponed for a reasonable time that will
not exceed the duration of the Excusable Delay.
3. However, if an Excusable Delay has continued for thirty (30) days or
more, the Contracting Authority may, by giving notice in writing to
the Contractor, terminate the Contract. In such a case, the Parties
agree that neither will make any claim against the other for damages,
costs, expected profits or any other loss arising out of the
termination or the event that contributed to the Excusable Delay.
The Contractor agrees to repay immediately to Canada the portion of
any advance payment that is unliquidated at the date of the
termination.
4. Unless Canada has caused the delay by failing to meet an obligation
under the Contract, Canada will not be responsible for any costs
incurred by the Contractor or any of its subcontractors or agents as
a result of an Excusable Delay.
2010B 09 (2008-05-12) Inspection and Acceptance of the Work
All the Work is subject to inspection and acceptance by Canada. Inspection
and acceptance of the Work by Canada do not relieve the Contractor of its
responsibility for defects or other failures to meet the requirements of
the Contract. Canada will have the right to reject any work that is not in
accordance with the requirements of the Contract and require its correction
or replacement at the Contractor's expense.
2010B 10 (2008-05-12) Invoice Submission
1. Invoices must be submitted in the Contractor's name. The Contractor
must submit invoices for each delivery or shipment; invoices must
only apply to the Contract. Each invoice must indicate whether it
covers partial or final delivery.
2. Invoices must show:
(a) the date, the name and address of the client department, item
or reference numbers, deliverable and/or description of the
Work, contract number, Client Reference Number (CRN),
Procurement Business Number (PBN), and financial code(s);
(b) details of expenditures in accordance with the Basis of
Payment, exclusive of Goods and Services Tax (GST) or
Harmonized Sales Tax (HST) (such as item, quantity, unit of
issue, unit price, fixed time labour rates and level of
effort, subcontracts, as applicable);
(c) deduction for holdback, if applicable;
(d) the extension of the totals, if applicable; and
(e) if applicable, the method of shipment together with date,
case numbers and part or reference numbers, shipment charges
and any other additional charges.
3. If applicable, the GST or HST must be specified on all invoices as a
separate item. All items that are zero-rated, exempt or to which
the GST or HST does not apply, must be identified as such on all
invoices.
4. By submitting an invoice, the Contractor certifies that the invoice
is consistent with the Work delivered and is in accordance with the
Contract.
2010B 11 (2010-08-16) Taxes
1. Municipal Taxes
Municipal Taxes do not apply.
2. Provincial Taxes
(a) Excluding legislated exceptions, federal government
departments and agencies are not required to pay any sales
tax payable to the province in which the taxable goods or
services are delivered. This exemption has been provided to
federal government departments and agencies under the
authority of one of the following:
(i) Provincial Sales Tax (PST) Exemption Licence Numbers,
for the provinces of:
Prince Edward Island OP-10000-250
Manitoba 390-516-0
(ii) for Quebec, Saskatchewan, the Yukon Territory, the
Northwest Territories and Nunavut, an Exemption
Certification, which certifies that the goods or
services purchased are not subject to the provincial/
territorial sales and consumption taxes because they
are purchased by the federal government with Canada
funds for the use of the federal government.
(b) Currently, in Alberta, the Yukon Territory, the Northwest
Territories and Nunavut, there is no general PST. However,
if a PST is introduced in Alberta, the Yukon Territory, the
Northwest Territories or Nunavut, the sales tax exemption
certificate would be required on the purchasing document.
(c) Federal departments must pay the HST in the participating
provinces of Newfoundland and Labrador, Nova Scotia, New
Brunswick, Ontario and British Columbia.
(d) The Contractor is not exempt from paying PST under the above
Exemption Licence Numbers or Exemption Certification. The
Contractor must pay the PST on taxable goods or services used
or consumed in the performance of the Contract (in accordance
with applicable provincial legislation), including material
incorporated into real property.
3. Changes to Taxes and Duties
If there is any change to any tax or duty payable to any level of
government in Canada after the bid submission date that affects the
costs of the Work to the Contractor, the Contract Price will be
adjusted to reflect the increase or decrease in the cost to the
Contractor. However, there will be no adjustment for any change
that increases the cost of the Work to the Contractor if public
notice of the change was given before bid submission date in
sufficient detail to have permitted the Contractor to calculate the
effect of the change on its cost. There will be no adjustment if
the change takes effect after the date required by the Contract for
delivery of the Work.
4. GST or HST
The estimated GST or HST, if applicable, is included in the total
estimated cost on page 1 of the Contract. The GST or HST is not
included in the Contract Price but will be paid by Canada as
provided in the Invoice Submission section above. The Contractor
agrees to remit to Canada Revenue Agency any amounts of GST and HST
paid or due.
5. Tax Withholding of 15 Percent
Pursuant to the Income Tax Act, 1985, c. 1 (5th Supp.) and the
Income Tax Regulations, Canada must withhold 15 percent of the
amount to be paid to the Contractor in respect of services provided
in Canada if the Contractor is a non-resident unless the Contractor
obtains a valid waiver. The amount withheld will be held on account
for the Contractor in respect to any tax liability which may be owed
to Canada.
2010B 12 (2010-01-11) Transportation Costs
If transportation costs are payable by Canada under the Contract and the
Contractor makes the transportation arrangements, shipments must be made by
the most direct and economical means consistent with normal shipping
practice. The costs must be shown as a separate item on the invoice.
2010B 13 (2008-05-12) Payment Period
1. Canada's standard payment period is thirty (30) days. The payment
period is measured from the date an invoice in acceptable form and
content is received in accordance with the Contract or the date the
Work is delivered in acceptable condition as required in the
Contract, whichever is later. A payment is considered overdue on the
31st day following that date and interest will be paid automatically
in accordance with the section 14.
2. If the content of the invoice and its substantiating documentation
are not in accordance with the Contract or the Work is not in
acceptable condition, Canada will notify the Contractor within
fifteen (15) days of receipt. The 30-day payment period begins upon
receipt of the revised invoice or the replacement or corrected Work.
Failure by Canada to notify the Contractor within fifteen (15) days
will only result in the date specified in subsection 1 to apply for
the sole purpose of calculating interest on overdue accounts.
2010B 14 (2008-12-12) Interest on Overdue Accounts
1. For the purpose of this section:
"Average Rate" means the simple arithmetic mean of the Bank Rates in
effect at 4:00 p.m. Eastern Time each day during the calendar month
immediately before the calendar month in which payment is made;
"Bank Rate" means the rate of interest established from time to time
by the Bank of Canada as the minimum rate at which the Bank of
Canada makes short term advances to members of the Canadian Payments
Association;
"date of payment" means the date of the negotiable instrument drawn
by the Receiver General for Canada to pay any amount under the
Contract;
an amount becomes "overdue" when it is unpaid on the first day
following the day on which it is due and payable according to the
Contract.
2. Canada will pay to the Contractor simple interest at the Average
Rate plus 3 percent per year on any amount that is overdue, from the
date that amount becomes overdue until the day before the date of
payment, inclusive. The Contractor is not required to provide
notice to Canada for interest to be payable.
3. Canada will pay interest in accordance with this section only if
Canada is responsible for the delay in paying the Contractor.
Canada will not pay interest on overdue advance payments.
2010B 15 (2008-05-12) Audit
The amount claimed under the Contract is subject to government audit both
before and after payment is made. The Contractor must keep proper accounts
and records of the cost of performing the Work and keep all documents
relating to such cost for six (6) years after it receives the final payment
under the Contract.
2010B 16 (2008-05-12) Compliance with Applicable Laws
1. The Contractor must comply with all laws applicable to the
performance of the Contract. The Contractor must provide evidence
of compliance with such laws to Canada at such times as Canada may
reasonably request.
2. The Contractor must obtain and maintain at its own cost all permits,
licenses, regulatory approvals and certificates required to perform
the Work. If requested by the Contracting Authority, the Contractor
must provide a copy of any required permit, license, regulatory
approvals or certificate to Canada.
2010B 17 (2008-05-12) Confidentiality
1. The Contractor must keep confidential all information provided to
the Contractor by or on behalf of Canada in connection with the Work
and all information conceived, developed or produced by the
Contractor as part of the Work. Information provided to the
Contractor by or on behalf of Canada must be used solely for the
purpose of the Contract and remains the property of Canada.
2. Subject to the Access to Information Act, R.S.C. 1985, c. A-1, and
to any right of Canada under the Contract to release or disclose,
Canada agrees not to release or disclose outside the Government of
Canada any information delivered to Canada under the Contract that
is proprietary to the Contractor or a subcontractor.
3. The obligations of the Parties set out in this section do not apply
to any information where the same information:
(a) is publicly available from a source other than the other
Party; or
(b) is or becomes known to a Party from a source other than the
other Party, except any source that is known to be under an
obligation to the other Party not to disclose the information,
or
(c) is developed by a Party without use of the information of the
other Party.
2010B 18 (2008-05-12) Copyright
1. Anything that is created or developed by the Contractor as part of
the Work under the Contract in which copyright subsists belongs to
Canada. The Contractor must incorporate the copyright symbol and
either of the following notices, as appropriate: © Her Majesty the
Queen in right of Canada (year) or © Sa Majesté la Reine du chef du
Canada (année).
2. At the request of the Contracting Authority, the Contractor must
provide to Canada, at the completion of the Work or at such other
time as the Contracting Authority may require, a written permanent
waiver of moral rights as defined in the Copyright Act, R.S., 1985,
c. C-42, in a form acceptable to the Contracting Authority, from
every author that contributed to the Work. If the Contractor is an
author, the Contractor permanently waives the Contractor's moral
rights.
2010B 19 (2008-05-12) Government Property
The Contractor must take reasonable and proper care of all Government
Property while it is in its possession or subject to its control. The
Contractor is responsible for any loss or damage resulting from its failure
to do so other than loss or damage caused by ordinary wear and tear.
2010B 20 (2008-05-12) Amendment
To be effective, any amendment to the Contract must be done in writing by
the Contracting Authority and the authorized representative of the
Contractor.
2010B 21 (2008-05-12) Assignment
1. The Contractor must not assign the Contract without first obtaining
the written consent of the Contracting Authority. Any assignment
made without that consent is void and will have no effect. The
assignment will be effective upon execution of an assignment
agreement signed by the Parties and the assignee.
2. Assignment of the Contract does not relieve the Contractor from any
obligation under the Contract and it does not impose any liability
upon Canada.
2010B 22 (2008-05-12) Suspension of the Work
The Contracting Authority may at any time, by written notice, order the
Contractor to suspend or stop the Work or part of the Work under the
Contract. The Contractor must immediately comply with any such order in a
way that minimizes the cost of doing so.
2010B 23 (2008-05-12) Default by the Contractor
1. If the Contractor is in default in carrying out any of its
obligations under the Contract, the Contracting Authority may, by
giving written notice to the Contractor, terminate for default the
Contract or part of the Contract. The termination will take effect
immediately or at the expiration of a cure period specified in the
notice, if the Contractor has not cured the default to the
satisfaction of the Contracting Authority within that cure period.
2. If the Contractor becomes bankrupt or insolvent, makes an assignment
for the benefit of creditors, or takes the benefit of any statute
relating to bankrupt or insolvent debtors, or if a receiver is
appointed under a debt instrument or a receiving order is made
against the Contractor, or an order is made or a resolution passed
for the winding down of the Contractor, the Contracting Authority
may, to the extent permitted by the laws of Canada, by giving
written notice to the Contractor, immediately terminate for default
the Contract or part of the Contract.
3. If Canada gives notice under subsection 1 or 2, the Contractor will
have no claim for further payment except as provided in this section.
The Contractor will be liable to Canada for all losses and damages
suffered by Canada because of the default or occurrence upon which
the notice was based, including any increase in the cost incurred by
Canada in procuring the Work from another source. The Contractor
agrees to repay immediately to Canada the portion of any advance
payment that is unliquidated at the date of the termination.
2010B 24 (2008-05-12) Termination for Convenience
1. At any time before the completion of the Work, the Contracting
Authority may, by giving notice in writing to the Contractor,
terminate for convenience the Contract or part of the Contract.
Once such a notice of termination for convenience is given, the
Contractor must comply with the requirements of the termination
notice. If the Contract is terminated in part only, the Contractor
must proceed to complete any part of the Work that is not affected
by the termination notice. The termination will take effect
immediately or, as the case may be, at the time specified in the
termination notice.
2. If a termination notice is given pursuant to subsection 1, the
Contractor will be entitled to be paid, for costs that have been
reasonably and properly incurred to perform the Contract to the
extent that the Contractor has not already been paid or reimbursed
by Canada. The Contractor will be paid:
(a) on the basis of the Contract Price, for all completed work
that is inspected and accepted in accordance with the
Contract, whether completed before, or after the termination
in accordance with the instructions contained in the
termination notice;
(b) the Cost to the Contractor plus a fair and reasonable profit
for all work terminated by the termination notice before
completion; and
(c) all costs incidental to the termination of the Work incurred
by the Contractor but not including the cost of severance
payments or damages to employees whose services are no longer
required, except wages that the Contractor is obligated by
statute to pay.
3. Canada may reduce the payment in respect of any part of the Work, if
upon inspection, it does not meet the requirements of the Contract.
4. The total of the amounts, to which the Contractor is entitled to be
paid under this section, together with any amounts paid, due or
becoming due to the Contractor must not exceed the Contract Price.
The Contractor will have no claim for damages, compensation, loss of
profit, allowance arising out of any termination notice given by
Canada under this section except to the extent that this section
expressly provides. The Contractor agrees to repay immediately to
Canada the portion of any advance payment that is unliquidated at
the date of the termination.
2010B 25 (2008-05-12) Right of Set-off
Without restricting any right of set-off given by law, Canada may set-off
against any amount payable to the Contractor under the Contract, any amount
payable to Canada by the Contractor under the Contract or under any other
current contract. Canada may, when making a payment pursuant to the
Contract, deduct from the amount payable to the Contractor any such amount
payable to Canada by the Contractor which, by virtue of the right of
set-off, may be retained by Canada.
2010B 26 (2008-05-12) Conflict of Interest and Values and Ethics
Codes for the Public Service
The Contractor acknowledges that individuals who are subject to the
provisions of the Conflict of Interest Act, 2006, c. 9, s. 2, the Conflict
of Interest Code for Members of the House of Commons, the Values and Ethics
Code for the Public Service or all other codes of values and ethics
applicable within specific organizations cannot derive any direct benefit
resulting from the Contract.
2010B 27 (2008-05-12) No Bribe or Conflict
1. The Contractor declares that no bribe, gift, benefit, or other
inducement has been or will be paid, given, promised or offered
directly or indirectly to any official or employee of Canada or to a
member of the family of such a person, with a view to influencing
the entry into the Contract or the administration of the Contract.
2. The Contractor must not influence, seek to influence or otherwise
take part in a decision of Canada knowing that the decision might
further its private interest. The Contractor must have no financial
interest in the business of a third party that causes or would
appear to cause a conflict of interest in connection with the
performance of its obligations under the Contract. If such a
financial interest is acquired during the period of the Contract,
the Contractor must immediately declare it to the Contracting
Authority.
3. The Contractor warrants that, to the best of its knowledge after
making diligent inquiry, no conflict exists or is likely to arise in
the performance of the Contract. In the event the Contractor
becomes aware of any matter that causes or is likely to cause a
conflict in relation to the Contractor's performance under the
Contract, the Contractor must immediately disclose such matter to
the Contracting Authority in writing.
4. If the Contracting Authority is of the opinion that a conflict
exists as a result of the Contractor's disclosure or as a result of
any other information brought to the Contracting Authority's
attention, the Contracting Authority may require the Contractor to
take steps to resolve or otherwise deal with the conflict or, at its
entire discretion, terminate the Contract for default. Conflict
means any matter, circumstance, interest, or activity affecting the
Contractor, its personnel or subcontractors, which may or may appear
to impair the ability of the Contractor to perform the Work
diligently and independently.
2010B 28 (2008-12-12) Contingency Fees
The Contractor certifies that it has not, directly or indirectly, paid or
agreed to pay and agrees that it will not, directly or indirectly, pay a
contingency fee for the solicitation, negotiation or obtaining of the
Contract to any person, other than an employee of the Contractor acting in
the normal course of the employee's duties. In this section, "contingency
fee" means any payment or other compensation that depends or is calculated
based on a degree of success in soliciting, negotiating or obtaining the
Contract and "person" includes any individual who is required to file a
return with the registrar pursuant to section 5 of the Lobbying Act, 1985,
c. 44 (4th Supplement).
2010B 29 (2010-01-11) International Sanctions
1. Persons in Canada, and Canadians outside of Canada, are bound by
economic sanctions imposed by Canada. As a result, the Government
of Canada cannot accept delivery of goods or services that originate,
either directly or indirectly, from the countries or persons subject
to economic sanctions.
2. The Contractor must not supply to the Government of Canada any goods
or services which are subject to economic sanctions.
3. The Contractor must comply with changes to the regulations imposed
during the period of the Contract. The Contractor must immediately
advise Canada if it is unable to perform the Work as a result of the
imposition of economic sanctions against a country or person or the
addition of a good or service to the list of sanctioned goods or
services. If the Parties cannot agree on a work around plan, the
Contract will be terminated for the convenience of Canada in
accordance with section 24.
2010B 30 (2010-01-11) Code of Conduct for Procurement
The Contractor certifies that it has read the Code of Conduct for
Procurement and agrees to be bound by its terms.
2010B 31 (2008-05-12) Harassment in the Workplace
1. The Contractor acknowledges the responsibility of Canada to ensure,
for its employees, a healthy work environment, free of harassment.
A copy of the Policy on the Prevention and Resolution of Harassment
in the Workplace, which is also applicable to the Contractor, is
available on the Treasury Board Web site.
2. The Contractor must not, either as an individual, or as a corporate
or unincorporated entity, through its employees or subcontractors,
harass, abuse, threaten, discriminate against or intimidate any
employee, contractor or other individual employed by, or under
contract with Canada. The Contractor will be advised in writing of
any complaint and will have the right to respond in writing. Upon
receipt of the Contractor's response, the Contracting Authority will,
at its entire discretion, determine if the complaint is founded and
decide on any action to be taken.
2010B 32 (2008-05-12) Entire Agreement
The Contract constitutes the entire and only agreement between the Parties
and supersedes all previous negotiations, communications and other
agreements, whether written or oral, unless they are incorporated by
reference in the Contract. There are no terms, covenants, representations,
statements or conditions binding on the Parties other than those contained
in the Contract.
2010B 33 (2010-01-11) Transportation Carriers' Liability
The federal government's policy of underwriting its own risks precludes
payment of insurance or valuation charges for transportation beyond the
point at which ownership of goods passes to the federal government
(determined by the FOB point or Incoterms). Where increased carrier
liability is available without charge, the Contractor must obtain the
increased liability for shipment.