52.212-4  Contract Terms and Conditions--Commercial Items.

4.  Amend Alternate I of section 52.212-4 by--

a.  Revising the date of Alternate I and the introductory text;

b.  Revising paragraphs of (i)(1) introductory text and (i)(1)(ii)(A); and

c.  Adding paragraph (m).

The revised and added text reads as follows:

52.212-4 Contract Terms and Conditions--Commercial Items.

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Alternate I (AUG 2012). When a time-and-materials or labor-hour contract is contemplated, substitute the following paragraphs (a), (e), (i), (l), and (m) for those in the basic clause.

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(i)  Payments.

(1) Work performed.

The Government will pay the

Contractor as follows upon the submission of commercial invoices approved by the Contracting Officer:

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(ii)  * * *

(A)  If the Contractor furnishes materials that meet the definition of a commercial item at 2.101, the price to be paid for such materials shall not exceed the Contractor's established catalog or market price, adjusted to reflect the--

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(m)  Termination for cause. The Government may terminate this contract, or any part hereof, for cause in the event of any default by the Contractor, or if the Contractor fails to comply with any contract terms and conditions, or fails to provide the Government, upon written request, with adequate assurances of future performance. Subject to the terms of this contract, the Contractor shall be paid an amount computed under paragraph (i) Payments of this clause, but the "hourly rate" for labor hours expended in furnishing work not delivered to or accepted by the Government shall be reduced to exclude that portion of the rate attributable to profit. Unless otherwise specified in paragraph (a)(4) of this clause, the portion of the "hourly rate" attributable to profit shall be 10 percent. In the event of termination for cause, the Contractor shall be liable to the Government for any and all rights and remedies provided by law. If it is determined that the Government improperly terminated this contract for default, such termination shall be deemed a termination for convenience.