ARCHIVED Progress Payments

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Legal text for SACC item

Progress payments will be made not more frequently than once a month upon 
the following terms and conditions:

       1. Progress Claims shall be completed in full, including a brief 
       report of the progress of the Work to the date of the claim, and 
       submitted to CCC on form DSS-MAS 1111, Claim for Progress Payment.

       2. All the certificates appearing on the said form are to be signed 
       by or for the respective persons indicated thereon.

       3. Payments will be made up to __ percent of the claimed amounts 
       approved by CCC, but in no event will cumulative payments exceed __ 
       percent of the Contract value.

       4. Each claim will show:

              a) expenditures during the claim period detailed in 
              accordance with the basis and/or method of payment terms of 
              the Contract;

              NOTE: Pro-rated profit not allowed.

              b) sales taxes (where applicable);

              c) goods and services tax (where applicable);

              d) holdback at ____ percent.*

              *NOTE: Percentage factor to be shown on form CCC 747A.       

CONDITIONS PRECEDENT TO PAYMENT       

No payment shall be made to the Contractor, unless and until:

       (a) invoices, inspection notes and other documents prescribed by CCC 
       are submitted in accordance with the terms of the Contract or 
       instructions of CCC;

       (b) with respect to all materials, parts, work in process or 
       finished work, the cost of which has been paid by the Contractor and 
       in respect of which payment is being made by CCC, the Contractor, if 
       required to do so, establishes to the satisfaction of CCC that the 
       materials, parts, work in process or finished work are free from all 
       claims, liens, attachments, charges or encumbrances;

       (c) with respect to all materials, parts, work in process or 
       finished work, the costs of which have accrued in the accounts of 
       the Contractor as a liability to be discharged in the normal course 
       of business and in respect of which materials, parts, work in 
       process or finished work payment is being made by CCC, the 
       Contractor, if required to do so, establishes to the satisfaction of 
       CCC that the payment to be made by CCC shall be used only for the 
       purpose of discharging such liability and that upon such discharge 
       the materials, parts, work in process or finished work shall be free 
       from all claims, liens, charges or encumbrances; and

       (d) in the case of payment in respect of finished work, such 
       finished work has been inspected and accepted in accordance with the 
       terms of this Contract. 

METHOD OF PAYMENT 

Payment by CCC to the Contractor for the Work shall be made:

       (a) in the case of a progress payment other than the final payment, 
       within thirty (30) days following the date of receipt of a duly 
       completed progress claim, form DSS-MAS 1111;

       (b) in the case of a final payment, within thirty (30) days 
       following the date of receipt of a duly completed final progress 
       claim, form DSS-MAS 1111, or within thirty (30) days following the 
       date on which the Work is accepted, whichever date is the later;

       (c) in the case of a final payment against a 'fixed-price Contract', 
       within thirty (30) days following the date of receipt of a final 
       invoice together with supporting documentation. 

If CCC has any objection to the form of an invoice, within fifteen (15) 
days of its receipt, CCC shall notify the Contractor of the nature of the 
objection and payment shall be delayed until thirty (30) days after the 
objection is resolved to the satisfaction of CCC.

LIQUIDATION 

Except as provided in the Termination for Convenience clause, all progress 
payments shall be liquidated by deducting from any payment under this 
Contract, other than advance or progress payments, the unliquidated 
progress payments, or ___ percent of the amount invoiced, whichever is less. 
The Contractor shall repay to CCC any amounts required by a retroactive 
price reduction, after computing liquidations and payments on past invoices 
at the reduced prices and adjusting the unliquidated progress payments  
accordingly.

TITLE 

1. Title to the property described in this clause shall vest in CCC. 
Vestiture shall be immediately upon the date of this Contract, for property 
acquired or produced before that date. Otherwise, vestiture shall occur 
when the property is or should have been allowable or properly chargeable 
to this Contract. 

2. "Property" as used in this clause, includes all of the items listed in 
subparagraphs (i) through (iv) below by the Contractor that are or should 
be allowable or properly chargeable to this Contract under sound and 
generally accepted accounting principles and practices:

       (i)   parts, materials, inventories, and work in process;

       (ii)  special tooling and special test equipment to which the U.S. 
       Government is to acquire title under any other clause of this 
       Contract;

       (iii) nondurable (i.e. non-capital) tools, jigs, dies, fixtures, 
       mods, patterns, taps, gauges, test equipment, and other similar 
       manufacturing aids, title to which would not be obtained as special 
       tooling under subparagraph (ii) above; and

       (iv)  drawings and technical data, to the extent that the Contractor 
       or its subcontractors are required to deliver them to CCC by other 
       clauses of this Contract.

3. The Contractor may sell any scrap resulting from production under this 
Contract without CCC's approval, but the proceeds shall be credited against 
the Contract Price.

4. To acquire for its own use or to dispose of property to which title is 
vested in CCC under this clause, the Contractor must obtain CCC's advance 
approval of the action and the terms. The Contractor shall

       (i)  exclude the allowable costs of the property from the costs of 
       Contract performance; and 

       (ii) repay to CCC any amount of unliquidated progress payments 
       allowable to the property. Repayment may be by cash or credit 
       memorandum.

5. When the Contractor completes all of the obligations under this Contract, 
including liquidation of all progress payments, title shall vest in the 
Contractor for all property (or the proceeds thereof) not:

       (i)  delivered to, and accepted by, CCC under this Contract; or

       (ii) incorporated in supplies delivered to, and accepted by, the U.S. 
       Government under this Contract and to which title is vested in the U.S. 
       Government under this Contract.
 
6. The terms of this Contract concerning liability for Government-furnished 
property ceases to apply to property to which the Contractor has acquired 
title solely under this clause. 

RISK OF LOSS

Before delivery to and acceptance by CCC, the Contractor shall bear the 
risk of loss of or damage to property, the title to which vests in CCC 
under this Contract, except to the extent otherwise provided in the 
Contract. The Contractor shall repay CCC an amount equal to the 
unliquidated progress payments that are based on costs allowable to 
property that is damaged, lost, stolen, or destroyed. 

CONTROL OF COSTS AND PROPERTY 

The Contractor shall maintain an accounting system and controls adequate 
for the proper administration of property.

REPORTS AND ACCESS TO RECORDS 

The Contractor shall promptly furnish to CCC reports, certificates, 
   financial statements, and other pertinent information reasonably 
   requested by CCC for the administration of this clause. CCC shall have 
   the right at any reasonable time to examine the Contractor's records and 
   accounts in regard to property.