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HomeMy WebLinkAboutResolution - 3456 - Lease Agreement - US Customs Service - Office Space, ETB LIA - 09_27_1990Resolution #3456 September 27, 1,990 Item #24 JES:dw RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a lease agreement with the United States of America, U.S. Customs Service, for 648 square feet of office space in the Executive Terminal Building at Lubbock International Airport, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 27th day of September , 1990. 6. C. McM N, MAYOR nq-cTe rsoya, ary APPROVED AS TO CONTENT: ern E. Case, Director of Aviation APPROVED AS TO FORM: can S otts, Jr., Assista Tr' 1 A ey '&;00a �4s�s°Ar • DEPARTMENT OF THE TREASURY m U.S. CUSTOMS SERVICE oBrows eye INDIANAPOLIS, INDIANA AUG 01 1990 FAC-4-CM:L:N:S3 GR Ms. Elma Martinez Deputy Director of Aviation Lubbock International Airport Route 3, P.O. Box 389 Lubbock, Texas 79401 Dear Ms. Martinez: Enclosed is U.S. Government Lease for Real Property Number 655-91-25405 for rental of inspectional space at the Lubbock International Airport to be used by the U.S. Customs Service, Port of Entry. Please review the enclosed lease. If you agree with the terms and conditions of the lease, execute the original and two copies. Also, please initial where indicated on each page of the attached General Clauses portions of this lease. Return the original and one copy of the lease and retain a copy for your file until the original has been executed by the U.S. Customs Service and returned to you. In order for this office to ensure prompt payment of rent, it is imperative that this lease agreement be fully executed and processed prior to the commencement date of the lease. Please complete your review, sign, and forward back to us within 10 days of receipt of this letter. Otherwise, we cannot guarantee that the invoice payment will be paid when due. Any correspondence concerning this matter should be addressed to: National Logistics Center U.S. Customs Service ATTN: Gary A. Ragatz P.O. Box 68906 Indianapolis, Indiana 46268 Phone: (317) 298-1164 Thank you for your assistance in completing this action. Sincerely, R ber-t A. Webster Director National Logistics Center Enclosures 0 STANDARD FORM 2 FEBRUARY 1965 EDITION - U.S. GOVERNMENT GENERADMINISTRATION LEASE FOR REAL PROPERTY ADMfNISTRATION - FP (U CFR) 1-16.91 OATeOF LEASE LEASE MO. 655-91-25405 THIS LEASE, made and entered into this date by and between The City of Lubbock, Texas, Lessor Rep.: Elma Martinez Telephone (806) 762-6411 whose address is Lubbock International Airport Route 3, Box 389 Lubbock, Texas 79401 and whose interest in the property hereinafter described is that of hereinafter called the Lessor, and the UNITED STATES OF AMERICA, hereinafter called the Government: Government Rep.: Gary.A. Ragatz (317) 298-1164 WITNESSETH: The parties hereto for the considerations hereinafter mentioned, covenant and agree as follows: 1. The Lessor hereby leases to the Government the following described premises: 648 square feet of office space in the south end of the Executive Terminal Building at the Lubbock International Airport to be used for the U.S. Customs Service, Port Director 2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term beginning on _____ October__1�. 1990._ ............. through _._September 30, 1991..____._. subject to termination and renewal rights as may be hereinafter set forth. Subject to availability of Fiscal Year 1991 3. The Government shall pay the Lessor annual rent of :1AQOZXXXXXXXX}33+XXXXXXXXXXXXXX XXXXX... at the rate of $I-•OOXXXXXXXXXXXXXXXZXXI=Xper....annum..................................................... in arrears. Rent for a lesser period shall be prorated. Rent checks shall be made payable to: City of Lubbock, Lubbock International Airport, Route 3, Box 389, Lubbock, Texas 79401 � r PartV 4. x4t14JL4t1xinay terminate this lease at any time by giving at least ....6.0................... days' notice in writing to the Ld no rental shall accrue after the effective date of termination. Said notice shall be computed commenc. ing with the day after the date of mailing. S. This lease may be renewed at the option of the Government, for the following terms and at the following rentals: Lease can be renewed annually through September, 30, 1993. Rental rates and services are negotiable. provided notice be given in writing to the Lessor at least ......3.0........... days before the end of the original lease terns or any renewal term; all other terms and conditions of this lease shall remain the same during any renewal term. Said notice shall be computed commencing with the day after the date of mailing. 2-106 G. The Lessor shall furnish to the Government, as part of the rental consideration, the following: A. Heating, air-conditioning, and utility service are included. Also includes replacement lamps, tubes, and ballasts for light fixtures and toilet supplies. B. The Lessor will submit a yearly invoice listing these transaction codes: APC 633669; ACT 01039635; OBCL 23.21 to the following address: U.S. Customs Service Port Director Route 3, Box 28 Lubbock, Texas 79401 C. Rent payment shall be processed by the Government on the first day of the month following the completion of services. 7. The following are attached and made a part hereof: IGli3d2cR3biCf4KsX�I�37ilCrtliK�C3i7tXdi�X4{XF.Xxxxxxxxx��p�, A. General Clauses, GSA Form 3517, (Rev 10-89) Pages 1 through 24. B. The Government shall be liable for negligent acts of any officer, employee, or agent of the Government in the use of the leased premises to the extent that liability is covered by the Federal Tort Claims Act, as amended. 8. The following changes were made in this lease prior to its execution: IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names as of the date first above written. LESSOR City of Lubbock Mayor B. C. McMinn C• Mayor (Sr ararr) (Si;rrarwrsl IN PRES E OF: - .. P.O. Box 2000 TX 79457 -- —� -- --------------------- '--- Lubbock,-- ------------------ (Sigxafrrrr (Adrlrrrrl UNITED STATES OF AMERICA - - Robert A. Webster, Director National Logistics Center Br.------------- - -------------- ----- ---------------:8----------------- -------- (S+ nalurr) IO jh�ial /i!!r1 STANDARD FORM 2 *U.S. ceo: 19e9-250-53e/002e( FEBRUARY 1965 EDITION - _ fee �r 3456 GENERAL CLAUSES (Acquisition of Leasehold Interests in Real Properly) 1. 552.270-10 — DEFINITIONS (JUN 1985) (a) The terms "contract" and "Contractor" shall mean"lease" and "Lessor," respectively. (b) If the lease is a sub -lease, the term "Lessor" means the sub -lessor. (c) The term "Lessor shall provide" means the Lessor shall furnish and install. 2. 552.270-28 - TIME EXTENSIONS (JUN 1985) The lease will not be terminated nor the Lessor charged with resulting damage if delays arise from unforeseeable causes beyond the control of the Lessor and/or his contractors, subcontractors, suppliers, or another Government contractor. However, the Lessor shall notify the Contracting Officer, in writing, of any delay within 10 calendar days after it begins. The Contracting Officer shall ascertain the facts, determine the extent of the delay, and grant extensions when justified. 3. 552.270-29 - TERMINATION FOR DEFAULT (JUN 1985) If the Lessor fails to prosecute the work required to deliver the leased premises ready for occupancy by the Government with such diligence as will ensure delivery of the leased premises within the time required by the lease agreement, or any extension of the specified time, or if the Lessor fails to complete said work within such time, the Government may, by written notice to the Lessor, terminate the lease agreement. Regardless of whether the lease is terminated, the Lessor and his sureties shall be liable for any damage to the Government resulting from his failure to deliver the premises ready for occupancy within the specified time. 4. 52.203-1 - OFFICIALS NOT TO BENEFIT (APR 1984) 1 No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit arising from it. However, this clause does not apply to this contract to the extent that this contract ismade with a corporation for the corporation's general benefit. 5. 552.270-27 -.DELIVERY AND CONDITION (JUN 1985) Unless the Government elects to have the space occupied in increments, the space must be delivered ready for occupancy as a complete unit. The Government reserves the right to determine when the space is ready to occupy. 6. 552.270-30 - PROGRESSIVE OCCUPANCY (JUN 1985) The Government shall pay rent only when the entire premises or suitable units are ready for occupancy. If the agency occupies the space in partial increments, rent will accrue or be paid on a pro rats basis. Rental payments shall become due on the first workday of the month following the month in which an increment of space is occupied, except that should an increment of space be occupied after the fifteenth day of the month, the payment due date will be the first workday of the second month following the month in which it was occupied. The commencement date of the firm term will be a composite determined from all dates of incremental occupancy. 7. MEASUREMENT FOR PAYMENT (APR 1984) When space is offered and accepted, the space will be mutually measured upon delivery. Payment will be made on the basis of actual measurement; however, INITIALS: Lessor Government GSA FORM 3517 PAGE 1 (REV 10/89) payment will not be made for delivered space which is in excess of the maximum square footage solicited. 8. 552.270-26 - IF MINIMUM NOT DELIVERED (JUN 1985) If delivered space contains less than the minimum square footage, the Government may cancel the lease. If such cancellation occurs, the Government may exercise its legal rights including charging the Lessor and its surety the increased cost of providing replacement space. 9. 552.270-16 - INSPECTION OF PREMISES (MAY 1989) At all times after receipt of offers, prior to or after acceptance of any offers, or during any construction, remodeling, or renovation work, the premises and the building or any parts thereof, upon reasonable and proper notice, must be accessible for inspection by the Contracting Officer, or by architects, engineers, or other technicians representing him, to determine whether the essential requirements of the solicitation or the lease - requirements are meta Additionally, the Government reserves the right, upon reasonable notice, to: (a) inspect and perform bulk sampling and analysis of suspected asbestos - containing materials; (b) monitor the air for asbestos fibers in the space offered or under lease as well as other areas of the building deemed necessary by the Contracting Officer; (c) inspect the -premises for any leaks, spills, or other potentially hazardous conditions which may involve tenant exposure to hazardous or toxic substances (e.g. PCB's); (d) inspect the site upon which the space is offered for any current or past hazardous waste operations, and ensure that appropriate mitigating actions were taken to alleviate any environmentally unsound activities in accordance with Federal, State and local regulations. 10. 552.270-14 - CONDITION REPORT (JUN 1985) A joint physical survey and inspection report of the demised premises will; be made as of the effective date of this lease, reflecting the then present condition, and will be signed on behalf of the parties hereto. 11. .552.270-13 - DAMAGE BY FIRE OR OTHER CASUALTY (JUN 1985) If the said premises be destroyed by fire or other casualty, this lease will immediately terminate. In case of partial destruction or damage, so as to render the premises untenantable, as determined by the Government, the Government may terminate the lease by giving written notice to the Lessor within 15 calendar days thereafter; if so terminated, no rent will accrue to the Lessor after such partial destruction or damage; and if not so terminated, the rent will be reduced proportionately by supplemental agreement hereto effective from the date of such partial destruction or damage. 12. SUBSTITUTION OF TENANT AGENCY (APR 1984) The Government reserves the right to substitute any agency(ies) for the agency(ies) named in this solicitation at any time after the offer or during the term of the lease. 13. 552.270-11 - SUBLETTING THE PREMISES (JUN 1985) The Government may sublet any part of the premises but shall not be relieved from any obligations under this lease by reason of any such subletting. INITIALS: Lessor Government GSA FORM 3517 PAGE 2 (REV 10/89) 14. 552.270-19 - ALTERATIONS (JUN 1985) The Government shall have the right during the existence of this lease to make alterations, attach fixtures, and erect structures or signs in or upon the premises hereby leased, which fixtures, additions or structures so placed in, on, upon, or attached to the said premises shall be and remain the property of the Government and may be removed or otherwise disposed of by the Government. If the lease contemplates that the Government is the sole occupant of the building, for purposes of this clause, the leased premises include the land on which the building is sited and the building itself. Otherwise, the Government shall have the right to tie into or make any physical connection with any structure located on the property as is reasonably necessary for appropriate utilization of the leased space. 15. 552.270-17 - FAILURE IN PERFORMANCE (JUN 1985) The covenant to pay rent and the covenant to provide any service, utility, maintenance, or repair required under this lease are dependent. In the event of failure by the Lessor to provide any of these items, the Government may by contract or otherwise perform the service, maintenance, utility, or repair, and charge to the Lessor any cost incurred by the Government that is related to the performance of such service, maintenance, etc., including any administrative costs, and deduct such cost from any rental payments. Alternately, the Government may reduce rental payments by the corresponding value of the contract requirement not performed, as determined by the Contracting Officer. These remedies are not exclusive and are in addition to any other remedies which may be available under this contract or in the law. 16. 552.270-12 - MAINTENANCE OF PREMISES (JUN 1985) The Lessor shall maintain the demised premises, including the building and all equipment, fixtures, and appurtenances furnished by the Lessor under this lease in good repair and tenantable condition, except in case of damage arising from the act or the negligence of the Government's agents or employees. For the purpose of so maintaining said premises and property, the Lessor may at reasonable times, and with the approval of the authorized Government representative in charge, enter and inspect the same and make any necessary repairs thereto. 17. 552.270-21 - CHANGES (JUN 1985) (a) The Contracting Officer may at any time, by written order, make changes within the general scope of this lease in any one or more of the following: (1) Specifications. (2) Work or services. (3) Amount of space. (4) Facilities or space layout. (b) If any such change causes an increase or decrease in the Lessor's cost of, or the time required for, performance under this contract, whether or not changed by the order, the Contracting Officer shall modify the lease by (1) making an equitable adjustment in the rental rate, (2) making a lump sum price adjustment, or (3) revising the delivery schedule. (c) If such change causes an increase in costs under this contract, the Lessor shall submit any "proposal for adjustment" (hereafter referred to as proposal) under the clause at 552.270-20, Proposal for Adjustment. (d) Adjustments for operating expenses in vacant leased premises will be in accordance with the clause at 552.270-25, Adjustment for Vacant Premises. (e) Failure to agree to any adjustment shall be a dispute under the Disputes clause. INITIALS:�6 Lessor Government GSA FORM 3517 PAGE 3 (REV 10/89) (f) No services or work for which an additional cost or fee will be charged by the Lessor will be furnished without the prior written authorization of the Contracting Officer or a designated representative of the Contracting Officer. 18. 552.270-20 - PROPOSALS FOR ADJUSTMENT (JUN 1985) (a) The Contractor Officer may, from time to time during the term of this lease, require changes to be made in the work or. services to be performed and in the terms or conditions of this lease. Such changes will be required under the Changes clause. (b) If the Contracting Officer makes a change within the general scope of the lease, the Lessor shall submit, in a timely manner, an itemized cost proposal for the work to be accomplished or services to be performed when the cost exceeds $25,000. The proposal, including all subcontractor work, will contain at least the following details- (1) Material quantities and unit costs, (2) Labor costs (identified with specific item or material to be placed or operation to be performed), (3) Equipment costs, (4) Workman's compensation and public liability insurance, (5) Overhead, (6) Profit, and (7) Employment taxes under FICA and FUTA. (c) The following Federal Acquisition Regulation (FAR) provisions also apply to all proposals exceeding $100,000 in cost-- (1) The Lessor shall provide cost or pricing data including subcontractor cost and pricing data (48 CFR 15.804-2), (2) The Lessor's representative, all contractors, and subcontractors whose portion of the work exceeds $100,000 must sign and return the "Certificate of Current Cost or Pricing Data" (48 CFR 15.804-4), and (3) The agreement for "Price Reduction for Defective Cost or Pricing Data" must be signed and returned (48 CFR 15.804-8). i (d) Lessors shall also refer to 48 CFR Part 31, Contract Cost Principles, for information on which costs are allowable, reasonable, and allocable in Government work. 19. 52.215-22 - PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA (APR 1988) (a) If any price, including profit or fee, negotiated in connection with this contract, or any cost reimbursable under this contract, was increased by any significant amount because (1) the Contractor or a subcontractor furnished cost or pricing data that were not complete, accurate, and current as certified in its Certificate of Current Cost or Pricing Data; (2) a subcontractor or prospective subcontractor furnished the Contractor cost or pricing data that were not complete, accurate, and current as certified in the Contractor's Certificate of Current Cost or Pricing Data, or (3) any of these parties furnished data of any description that were not accurate, the price or cost shall be reduced accordingly and the contract shall be modified to reflect the reduction. (b) Any reduction in the contract price under paragraph (a) above due to defective data from a prospective subcontractor that was not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which (1) the actual subcontract or (2) the actual cost to the Contractor, if there was no subcontract, was less than the prospective subcontract cost estimate. submitted by the Contractor; provided, that the actual subcontract price was not itself affected by defective cost pricing.data. INITIALS:_ & Lessor Government GSA FORM 3517 PAGE 4 jREV 10/89) (c)(1) If the Contracting Officer determines under paragraph (a) of this clause that a price or cost reduction should be made, the Contractor agrees not to raise the following matters as a defense: ti (i) The Contractor or subcontractor was a sole source supplier or otherwise was in a superior bargaining position and thus the price of the contract would not have been modified even if accurate, complete, and current cost or pricing data had been submitted. (ii) The Contracting Officer should have known that the cost or pricing data in issue were defective even though the Contractor or subcontractor took no affirmative action to bring the character of the data to the attention of the Contracting Officer. (iii) The contract was based on an agreement about the total cost of the contract and there was no agreement about the cost of each item procured under the contract. (iv) The Contractor or subcontractor did not submit a Certificate of Current. Cost or Pricing Data. (2)(i) Except as prohibited by subdivision (c)(2)(ii) of this clause, an offset in an amount determined appropriate by the Contracting Officer based upon the facts shall be allowed against the amount of a contract price reduction if - (A) The Contractor certifies to the Contracting Officer that, to the best of the Contractor's knowledge and belief, the Contractor is entitled to the offset in the amount requested; and (B) The Contractor proves that the cost or pricing data were available before the date of agreement on the price of the contract (or price of the modification) and that the data were not submitted before such date. (ii) An offset shall not be allowed if - (A) The understated data was known by the Contractor to be understated when the Certificate or Current Cost or Pricing Data was signed; or (B) The Government proves that the facts demonstrate that the contract price would not have increased in the amount to be offset even if the available data had been submitted before the date of agreement on price. 20. 52.215-24 - SUBCONTRACTOR COST OR PRICING DATA (APR 1985) (a) Before awarding any subcontract expected to exceed $100,000 when entered into, or before pricing any subcontract modification involving a pricing adjustment expected to exceed $100,000, the Contractor shall require the subcontractor to submit cost or pricing data (actually or by specific identification in writing), unless the price is-- (1) Based on adequate price competition; (2) Based on established catalog or market prices of commercial items sold in substantial quantities to the general public; or (3) Set by law or regulation. (b) The Contractor shall require the subcontractor to certify in substantially the form prescribed in subsection 15.804-4 of the Federal Acquisition Regulation (FAR) that, to the best of its knowledge and belief, the data submitted under paragraph (a) above were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract modification. (c) In each subcontract that exceeds Contractor shall insert either-- (1) The substance of this clause, paragraph (a) above requires submission subcontract; or (2) The substance of the clause at Pricing Data --Modifications. $100,000 when entered into, the including this paragraph (c), if of cost or pricing data for the FAR 52.215-25, Subcontractor Cost or INITIALS:& Lessor Government GSA FORM 3517 PAGE 5 (REV 10/89) 21. DISPLAY ADVERTISING (APR 1984) If the leased premises are solely for Government use, no advertising matter shall be constructed on or over the premises, unless authorized by the Contracting Officer. 22. 552.270-15 - APPLICABLE CODES AND ORDINANCES (JUN 1985) The Lessor, as part of the rental consideration, agrees to comply with all codes and ordinances applicable to the ownership and operation of the building in which the leased space is situated and, at his own expense, to obtain all necessary permits and related items. 23. 52.233-1 - DISPUTES (APR 1984) (a) This contract is subject to the Contract Disputes Act of 1978 (41 USC 601-613)(the Act). (b) Except as provided in the Act, all disputes arising under or relating to this contract shall be resolved under this clause. (c) "Claim," as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money, in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to this contract. A claim arising under a contract, unlike a claim relating to that contract, is a claim that can be resolved under a contract clause that provides for the relief sought by the claimant. However, a written demand or written assertion by the Contractor seeking the payment of money exceeding $50,000 is not a claim under the Act until certified as required by subparagraph (d)(2) below. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a claim under the Act. The submission may be converted to a claim under the Act, by complying with the submission and certification requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a reasonable time. (d)(1) A claim by the Contractor shall be made in writing and submitted to the Contracting Officer for a written decision. A claim by the Government against the Contractor shall be subject to a written decision by the Contracting Officer. (2) For Contractor claims exceeding $50,000, the Contractor shall submit with the claim a certification that- (i) The claim is made in good faith; (ii) Supporting data are accurate and complete to the best of the Contractor's knowledge and belief; and (iii) The amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable. (3)(1) If the Contractor is an individual, the certification shall be executed by that individual. (ii) If the Contractor is not an individual, the certification shall be executed by - (A) A senior company official in charge at the Contractor's plant or location involved; or (B) An officer or general partner of the Contractor having overall responsibility for the conduct of the Contractor's affairs. (e) For Contractor claims of $50,000 or less, the Contracting Officer must, if requested in writing by the Contractor, render a decision within 60 days of the request. For Contractor -certified claims over $50,000, the Contractor Officer must, within 60 days, decide the claim or notify the Contractor of the date by which the decision will be made. INITIALS: Lessor Government GSA FORM 3517 PAGE 6 (REV 10189) (f) The Contracting Officer's decision shall be final unless the Contractor appeals or files a suit as provided in the Act. (g) The Government shall pay interest on the amount found due and unpaid from (1) the date the Contracting Officer receives the claim (properly certified if required), or (2) the date payment otherwise would be due, if that date is later, until the date of payment. Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury as provided in the Act, which is applicable to the period during which the Contracting Officer receives the claim and then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim. (h) The Contractor shall proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action arising under the contract, and comply with any decision of the Contracting Officer. 24. 52.215-1 - EXAMINATION OF RECORDS BY COMPTROLLER GENERAL (APR 1984) (a) This clause applies if this contract exceeds $10,000 and was entered into by negotiation. (b) The Comptroller General of the United States or a duly authorized representative from the General Accounting Office shall, until 3 years after final payment under this contract or for any shorter period specified in Federal Acquisition Regulation (FAR) Subpart 4.7, Contractor Records Retention, have access to and the right to examine any of the Contractor's directly pertinent books, documents, paper, or other records involving transactions related to this contract. (c) The Contractor agrees to include in first -tier subcontracts under this contract a clause to the effect that the Comptroller General or a duly authorized representative from the General Accounting Office shall, until 3 years after final payment under the subcontract or for any shorter period specified in FAR Subpart 4.7, have access to and the right to examine 'any of the subcontractor's directly pertinent. books, documents, paper, or other records involving transactions related to the subcontract. "Subcontract," ask used in this clause, excludes (1) purchase orders not exceeding $10,000 and (�) subcontracts or purchase orders for public utility services at rates established to apply uniformly to the public, plus any applicable reasonable connection charge. (d) The periods of access and examination in paragraphs (b) and (c) above for records relating to (1) appeals under the Disputes clause, (2) litigation or settlement of claims arising from the performance of this contract, or (3) costs and expenses of this contract to which the Comptroller General or a duly authorized representative from the General Accounting Office has taken exception shall continue until such appeals, litigation, claims, or exceptions are disposed of. 25. 552.215-70 - EXAMINATION OF RECORDS BY GSA (APR 1984) (Applicable to leases which exceed $25,000.) The Contractor agrees that the Administrator of General Services or any of his duly authorized representatives shall, until the expiration of 3 years after final payment under this contract, or of the time periods for the particular records specified in Subpart 4.7 of the Federal Acquisition Regulation (48 CFR 4.7), whichever expires earlier, have access to and the right to examine any books, documents, paper, and records of the Contractor involving transactions related to this contract or compliance with ally clauses thereunder. The Contractor further agrees to include in all his subcontracts hereunder a provision to the effect that the subcontractor agrees that the Administrator of General Services or any of his duly authorized representatives shall, until the expiration of 3 years after final payment under the INITIALS: Lessor Government GSA FORM 3517 PAGE 7 (REV 10/89) subcontract, or of the time periods for the particular records specified in Subpart 4.7 of the Federal Acquisition Regulation (48 CFR 4.7), whichever expires earlier, have access to and the right to examine any books, documents., papers, and records of such subcontractor, involving transactions related to the subcontract or compliance with any clauses thereunder. The term "subcontract" as used in this clause excludes (a) purchase orders not exceeding $10,000 and (b) subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public. 26. 52.203-3 - GRATUITIES (APR 1984) (a) The right of the Contractor to proceed may be terminated by written notice if, after notice and hearing, the agency head or a designee determines that the Contractor, its agent, or another representative- (1) Offered or gave a gratuity (e.g., an entertainment or gift) to an officer, official, or employee of the Government; and (2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract. (b) The facts supporting this determination may be reviewed by any court having lawful jurisdiction. (c) If this contract is terminated under paragraph (a) above, the Government is entitled— (1) To pursue the same remedies as in a breach of the contract; and (2) In addition to any other damages provided by law, to exemplary damages of not less than 3 nor more than 10 times the cost incurred by the Contractor in giving gratuities to the person concerned, as determined by the agency head or a designee. (This subparagraph (c)(2) is applicable only if this contract uses money appropriated to the Department of Defense.) (d) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract. 27. 552.203-5 - COVENANT AGAINST CONTINGENT FEES (MAY 1989) (a) The Contractor warrants that no person or agency has been employed or retained to solicit or obtain this contract upon an agreement or understanding for a contingent fee, except a bona fide employee or agency. For breach or violation of this warranty, the Government shall have the right to annul this contract without liability or, in its discretion, to deduct from the contract price or consideration, or otherwise recover the full amount of the contingent fee. (b) "Bona fide employee or agency," as used in this clause, means licensed real estate agents or brokers having listings on property for rent, in accordance with general business practice, and who have not obtained such licenses for the sole purpose of effecting this contract, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds itself out as being able to obtain any Government contracts or contracts through improper influence. "Contingent fee," as used in this clause, means any commission, percentage, brokerage, or other fee that is contingent upon the success that a person or concern has in securing a Government contract. "Improper influence," as used in this clause, means any influence that induces or tends to induce a Government employee or officer to give consideration or to act regarding a Government contract on any basis other than the merits of the matter. INITIALS:-.-& Lessor Government GSA FORM 3517 PAGE 8 (REV 10169) 28. 532.232-71 - PROMPT PAYMENT (APR 1989) The Government will slake payments under the terms and conditions specified in this clause. Payment shall be considered as being made on the day a check is dated or an electronic funds transfer is made. All days referred to in this clause are calendar days, unless otherwise specified. (a) Payment due date. (1) Rental payments. Rent shall be paid monthly in arrears and will be due on the first workday of each month, and only as provided for by the lease. (i) When the date for commencesent of rent falls on the lath day of the month or earlier, the initial monthly rental payment under this contract shall become due on the first workday of the month following the month in which the commencement of the rent is effective. ' (ii) When the date for commencement of seat calls after the 15th day of the month, the initial monthly rental payment under this contract `shall become due on the first workday of the second month following the month in which the commencement of the rent is affective .(2) Other payments. The due date for making payments other than rent shall be the later of the following two events: (i) The 30th day after the designated billing office has received a proper invoice from the Contractor. -(ii) The 30th day after Government acceptance of the work or service. However, if the designated billing.office fails to annotate the invoice with the actual date of receipt, the invoice payment due date shall be deemed to be the 30th day after the Contractor's invoice is dated, provided a proper invoice is received and there is no disagreement over quantity, quality, or Contractor compliance with contract requirements. (b) Invoice aad inspection requirements for payments other than rent. (1) The Contractor shall prepare and submit an invoice to the designated billing office after completion of the work. A proper invoice shall include the following items: (i) Name and address of the Contractor. (ii) Invoice date. (iii) Lease number. (iv) Government's order number or other authorization. (v) Description, price, and quantity of work or services delivered. (vi) hale and address of Contractor official to whom payment is to be sent (must be the same as that in the remittance address in the lease or the order.) (vii) Rase (where practicable), title, phone number, and sailing address of person to be notified in the event of a defective invoice. (2) The Government will inspect and determine the acceptability of the work performed or services delivered within 7 days after the receipt of a proper invoice or notification of completion of the work or services unless a different period is specified at the time the order is placed. If actual acceptance occurs later, for the purpose of determining the payment due date and calculation of interest, acceptance will be deemed to occur on the last day of the 7-day inspection period. If the work or service is rejected for failure to conform to the technical requirements of the contract, the 7 days will be counted beginning with receipt of a new invoice or notification. In either case, the Contractor is not entitled to any payment or interest unless actual acceptance by the Government occurs. ` INITIALS: i Lessor Government GSA FORM 2517 PAGE 9 (REV 10/89) (c) Interest Penalty. (1) An interest penalty shall be paid automatically by the Government, without request from the Contractor, if payment is not made by the due date. (2) The interest penalty shall be at the rate established by the Secretary of the Treasury under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) that is in effect on the day after the due date. This rate is referred to as the "Renegotiation Board Interest Rate," and it is published in the Federal Register semiannually on or about January 1 and July 1. The interest penalty shall accrue daily on the payment amount approved by the Government and be compounded in 30-day increments inclusive from the first day after the due date through the payment date. (3) Interest penalties will not continue to accrue after the filing of a claim for such penalties under the clause at 52.233-1, Disputes, or for more than l year. Interest penalties of less than $1.00 need not be paid. (4) Interest penalties are not required on payment delays due to disagreement between the Government and Contractor over the payment amount or other issues involving contract compliance or on amounts temporarily withheld or retained in accordance with the terms of the contract. Claims involving disputes, and any interest that may be payable, will be resolved in accordance with the clause at 52.233-1, Disputes. 29. 552.232-72 INVOICE REQUIREMENTS (VARIATION) (APR 1986) (This clause applies to payments other than rent.) (a) Invoices shall be submitted in an original only, unless otherwise specified, to the designated billing office specified in this contract or purchase/delivery order. (b) Invoices must include the Accounting Control Transaction (ACT) number provided below or on the purchase/delivery order. ACT Number (to be supplied on individual orders) (c) If information or documentation in addition to that required by the Prompt Payment clause of this contract is required in connection with an . invoice for a particular order, the order will indicate what information or documentation must be submitted. 30. 52.232-23 - ASSIGNMENT OF CLAIMS (JAN 1986) (a) The Contractor, under the Assignment of Claims Act, as amended, 31 USC 3727, 41 USC 15 (hereafter referred to as the "the Act"), may assign its rights to be paid amounts due or to become due as a result of the performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency. The assignee under such an assignment may thereafter further assign or reassign its right under the original assignment to any type of financing institution described in the preceding sentence. - (b) Any assignment or reassignment authorized under the Act and this clause shall cover all unpaid amounts payable under this contract, and shall not be made to more than one party, except that an assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in the financing of this contract. (c) The Contractor shall not furnish or disclose to any assignee under this contract any classified document (including this contract) or information related to work under this contract until the Contracting Officer authorizes such action in writing. INITIALS: & Lessor Government GSA FORM 3517 PAGE 10 (REV 10/89) 31. 52.223-2 - CLEAN AIR AND WATER (APR 1984) (Applicable to leases which exceed $100,000.) (a) "Air Act," as used in this clause, means the Clean Air Act (42 USC 7401 et seq.). "Clean air standards," as used in this clause, means-- (1) Any enforceable rules, regulations, guidelines, standards, limitations, orders, controls, prohibitions, work practices, or other requirements contained in, issued under, or otherwise adopted under the Air Act or Executive Order 11738; (2) An applicable implementation plan as described in section 110(d) of the Air Act (42 USC 7410(d)); (3) An approved implementation procedure or plan under section lll(c) or section 111(d) of the Air Act (42 USC 7411(c) or (d)); or (4) An approved implementation procedure under section 112(d) of the Air Act (42 USC 7412(d)). "Clean water standards," as used in this clause, means any enforceable limitation, control, condition, prohibition, standard, or other requirement promulgated under the Water Act or contained in a permit issued to a discharger by the Environmental Protection Agency or by a State under an approved program, as authorized by section 402 of the Water Act (33 U.S.C. 1342), or by local government to ensure compliance with pretreatment regulations as required by section 307 of the Water Act (33 USC 1317). "Compliance," as used in this clause, means compliance with-- (1) Clean air or water standards; or (2) A schedule or plan ordered or approved by a court of competent jurisdiction, the Environmental Protection Agency, or an air or water pollution control agency under the requirements of the Air Act or Water Act and related regulations. "Facility," as used in this clause, means any building, plant, installation, structure, mine, vessel or other floating craft, location, or site of operations, owned, leased, or supervised by a Contractor or subcontractor, used in the performance of a contract or subcontract. When a location or site of operations includes more than one building, plant, installation, or structure, the entire location or site shall be deemed a facility except when the Administrator, or a designee, of the Environmental Protection Agency, determines that independent facilities are collocated in one geographical area. "Water Act," as used in this clause, means Clean Water Act (33 USC 1251 et seq.). (b) The Contractor agrees-- (1) To comply with all the requirements of section 114 of the Clean Air Act (42 USC 7414) and section 308 of the Clean Water Act (33 USC 1318) relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in section 114 and section 308 of the Air Act and the Water Act, and all regulations and guidelines issued to implement those acts before the award of this contract; (2) That no portion of the work required by this prime contract will be performed in a facility listed on the Environmental Protection Agency List of Violating Facilities on the date when this contract was awarded unless and until the EPA eliminates the name of the facility from the listing; (3) To use best efforts to comply with clean air standards and clean water standards at the facility in which the contract is being performed; and (4) To insert the substance of this clause into any nonexempt subcontract, including this subparagraph (b)(4). INITIALS: & Lessor Government GSA FORM 3517 PAGE 11 (REV 10/89) 32. 52.222-26 - EQUAL OPPORTUNITY (APR 1984) (Applicable to leases which exceed $10,000.) (a) If, during any 12-month period (including the 12 months preceding the award of this contract), the Contractor has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate value in excess of $10,000, the Contractor shall comply with subparagraphs (b)(1) through (11) below. Upon request, the Contractor shall provide information necessary to determine the applicability of this clause. (b) During performing this contract, the Contractor agrees as follows: (1) The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. (2) The Contractor shall take affirmative action to ensure the applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. This shall include, but not be limited to, (i) employment, (ii) upgrading, (iii) demotion, (iv) transfer, v) recruitment or recruitment advertising, (vi) layoff or termination, (vii) rates of pay or other forms of compensation, and (viii) selection for training, including apprenticeship. (3) The Contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided by the Contracting Officer that explain this clause. (4) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (5) The Contractor shall send, to each labor union or representative of workers with which ithas a collective bargaining agreement or other contract or understanding, the notice to be provided by the Contracting Officer advising the labor union or workers' representative of the Contractor's commitments under this clause, and post copies of the notice in conspicuous places available to employees and applicants for employment. (6) The Contractor shall comply with Executive Order 11246, as amended . and the rules, regulations, and orders of the Secretary of Labor. (7) The Contractor shall furnish to the contracting agency all information required by Executive Order 11246, as amended, and by the rules, regulations, and orders of the Secretary of Labor. Standard Form 100 (EEO-1), or any successor form, is the prescribed form to be filed within 30 days following the award, unless filed within 12 months preceding the date of award. (8) The Contractor shall permit access to its books, records, and accounts by the contracting agency or the Office of Federal Contract Compliance Programs (OFCCP) for the purpose of investigation to ascertain the Contractor's compliance with the applicable rules, regulations, and orders. (9) If the OFCCP determines that the Contractor is not in compliance with this clause or any rule, regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts, under the procedures authorized in Executive Order 11246, as amended. In addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive Order 11246, as amended, the rules, regulations, and orders of the Secretary of Labor, or as otherwise provided by law. (10) The Contractor shall include the terms and conditions of subparagraph (b)(1) through (11) of this clause in every subcontract or purchase order that is not exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order 11246, as amended, so that these terms and conditions will be binding upon each subcontractor or vendor. (11) The Contractor shall take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing these terms and conditions, including sanctions for noncompliance; provided, that if the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of any direction, the Contractor may INITIALS:& Lessor Government GSA FORM 3517 PAGE 12 (REV 10189) request the United States to enter into the litigation to protect the interests of the United States. 4 (c) Notwithstanding any other clause in this contract, disputes relative to this clause will be governed by the procedures in 41 CFR 60-1.1. 33. 52.219-8 - UTILIZATION OF SMALL BUSINESS CONCERNS AND SMALL DISADVANTAGED BUSINESS CONCERNS (JUN 1985) (Applicable to leases which exceed $10,000.) (a) It is the policy of the United States that small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals shall have the maximum practicable opportunity to participate in performing contracts let by any Federal agency, including contracts and subcontracts for subsystems, assemblies, components, and related services for major systems. It is further the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals. (b) The Contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with efficient contract performance. The Contractor further agrees to cooperate in any studies or surveys as may be conducted by the United States Small Business Administration or the awarding agency of the United States as may be necessary to determine the extent of the Contractor's compliance with this clause. (c) As used in this contract, the term "small business concern" shall mean a small business as defined pursuant to section 3 of the Small Business Act and relevant regulations promulgated pursuant thereto. The term "small business concern owned and controlled by socially and economically disadvantaged individuals" shall mean a small business concern-- (1) Which is at least 51 percent owned by one or more socially and economically disadvantaged individuals; or, in the case of any publicly owned !. business,.at least 51 per centum of the stock of which is owned by one or more socially and economically disadvantaged individuals; and (2) Whose management and daily business operations are controlled by one or more of such individuals. The Contractor shall presume that socially and economically disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian -Pacific Americans, Asian -Indian Americans and other minorities, or any other individual found to be disadvantaged by the Administration pursuant to Section 8(a) of the Small Business Act. (d) Contractors acting in good faith may rely on written representations by their subcontractors regarding their status as either a small business concern or a small business concern owned and controlled by socially and economically disadvantaged individuals. 34. 52.219-13 - UTILIZATION OF WOMEN -OWNED SMALL BUSINESSES (AUG 1986) (Applicable to leases which exceed $25,000.) (a) "Women -owned small businesses," as used in this clause, means businesses that are at least 51 percent owned by women who are United States citizens and who also control and operate the business. "Control," as used in this clause, means exercising the power to make policy decisions. INITIALS: 1, Lessor Government GSA FORM 3517 PAGE 13 (REV 10/89) "Operate," as used in this clause, means being actively involved in the day- to-day management of the business. "Small business concern," as used in this clause, means a concern including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR 121. (b) It is the policy of the United States that women -owned small businesses shall have the maximum practicable opportunity to participate in performing contracts awarded by any Federal agency. (c) The Contractor agrees to use its best efforts to give women -owned small businesses the maximum practicable opportunity to participate in the subcontracts it awards to the fullest extent consistent with the efficient performance of its contract. (d) The Contractor may rely on written representations by its subcontractors regarding their status as women -owned small businesses. 35. 52.222-35 - AFFIRMATIVE ACTION FOR SPECIAL DISABLED AND VIETNAM ERA VETERANS (APR 1984) (Applicable to leases which exceed $10,000.) (a) Definitions. "Appropriate office of the State employment service system," as used in this clause, means the local office of the Federal -State national system of public employment offices assigned to serve the area where the employment opening is to be filled, including the District of Columbia, Guam, Puerto Rico, Virgin Islands, American Samoa, and the Trust. Territory of the Pacific Islands. "Openings that the Contractor proposes to fill from within its own organization," as used in this clause, means employment openings for which no one outside the Contractor's organization (including any affiliates, } subsidiaries, and the parent companies) will be considered and includes any openings that the Contractor proposes to fill from regularly establish "recall" lists. "Opening that the Contractor proposes to fill under a customary and traditional employer -union hiring arrangement," as used in this clause, means employment openings that the Contractor proposes to fill from union halls, under their customary and traditional employer -union hiring relationship. "Suitable employment openings," as used in this clause-- (1) Includes, but is -not limited to, openings that occur in jobs categorized as-- (i) Production and nonproduction; (ii) Plant and office; (iii) Laborers and mechanics; (iv) Supervisory and nonsupervisory; (v) Technical; and (vi) Executive, administrative, and on a salary basis of less than professional positions compensated $25,000 a year; and (2) Includes full-time employment, temporary employment of over 3 days, and part-time employment, but not openings that the Contractor proposes to fill from within its own organization or under a customary and traditional employer - union hiring arrangement, nor openings in an educational institution -that are restricted to students of that institution. INITIALS:�S Lessor Government GSA FORM 3517 PAGE 14 (REV 10/89) (b) General. (1) Regarding any position for which the employee or applicant for employment is qualified, the Contractor shall not discriminate against the individual because the individual is a special disabled or Vietnam era veteran. The Contractor agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified special disabled and Vietnam era veterans without discrimination based upon their disability or veterans' status in all employment practices such as-- (i) Employment; (ii) Upgrading; (III) Demotion or transfer; (iv) Recruitment; (v) Advertising; (vi) Layoff or termination; (vii) Rates of pay or other forms of compensation; and (viii) Selection for training, including apprenticeship. (2) The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor (Secretary) issued under the Vietnam Era Veterans' Readjustment Assistance Act of 1972 (the Act), as amended. (c) Listing openings. (1) The Contractor agrees to list all suitable employment openings existing at contract award or occurring during contract performance, at an appropriate office of the State employment service system in the locality where the opening occurs. These openings include those occurring at any contractor facility, including one not connected with performing this contract. An independent corporate affiliate is exempt from this requirement. (2) State and local government agencies holding Federal contracts of $10,000 or more shall also list all their suitable openings with the appropriate office of the State employment service. (3) The listing of suitable employment openings with the State employment service system is required at least concurrently with using any other recruitment source or effort and involves the obligations of placing a bona fide job order, including accepting referrals of veterans and nonveterans. This listing does not require hiring any particular job applicant or hiring from any particular group of job applicants and is not intended to relieve the Contractor from any requirements of Executive orders or regulations concerning, nondiscrimination in employment. (4) Whenever the Contractor becomes contractually bound to the listing terms of this clause, it shall advise the State employment service system, in each State where it has establishments, of the name and location of each hiring location in the State. As long as the Contractor is contractually bound to these terms and has so advised the State system, it need not advise the State system of subsequent contracts. The Contractor may advise the State system when it is no longer bound by this contract clause. (5) Under the most compelling circumstances, an employment opening may not be suitable for listing, including situations when (i) the Government's needs cannot reasonably be supplied, (ii) listing would be contrary to National security, or.(iii) the requirement of listing would not be in the Government's interest. (d) Applicability. (1) This clause does not apply to the listing of employment openings which occur and are filled outside the 50 states, the District of Columbia, Puerto Rico, Guam, Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands. (2) The terms of paragraph (c) above of this clause do not apply to openings that the Contractor proposes to fill from within its own organization or under a customary and traditional employer -union hiring arrangement. This exclusion does not apply to a particular opening once an employer decides to consider applicants outside of its own organization or employer -union_ arrangement for that opening. (e) Postings. (1) The Contractor agrees to post employment notices stating (i) the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified special disabled veterans and veterans of the Vietnam era, and (ii) the rights of applicants and employees. INITIALS: b Lessor Government GSA FORM 3517 PAGE 15 (REV 10/89) (2) These notices shall be posted in conspicuous places that are available to employees and applicants for employment. They shall be in a form prescribed by the Director, Office of Federal Contract Compliance Programs, Department of Labor (Director), and provided by or through the Contracting Officer. (3) The Contractor shall notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the Contractor is bound by the terms of the Act, and is committed to take affirmative action to employ, and advance in employment, qualified special disabled and Vietnam era veterans. (f) Noncompliance. If the Contractor does not comply with the requirements of this clause, appropriate actions may be taken under the rules, regulations, and relevant orders of the Secretary issued pursuant to the Act. (g) Subcontracts. The Contractor shall include the terms of this clause in every subcontract or purchase order of $10,000 or more unless exempted by rules, regulations, or orders of the Secretary. The Contractor shall act as specified by the Director to enforce the terms, including action for noncompliance. 36. 52.222-37 - EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS AND VETERANS OF THE VIETNAM ERA (MAR 1987) (Applicable to leases which exceed $10,000.) (a) The Contractor agrees to report at least annually, as required by the Secretary of Labor, on: (1) The number of special disabled veterans and the number of veterans of the Vietnam era in the workforce of the contractor by job category and hiring location; and (2) The total number of new employees hired during the period covered by the report, and of that total, the number of special disabled veterans, and the number of veterans of the Vietnam era. (b) The above items shall be reported by completing the form entitled "Federal Contractor Veterans' Employment Report VETS-100." (c) Reports shall be submitted no later than March 31 of each year beginning March 31, 1988. (d) The employment activity report required by paragraph (a)(2) of this clause shall reflect total hires during the most recent 12-month period as of the ending date selected for the employment profile report required by paragraph (a)(1) of this clause. Contractors may select an ending date: (1) As of the end of any pay period during the period January through March 1st of the year the report is due, or (2) as of December 31, if the Contractor has previous written approval from the Equal Employment Opportunity Commission to do so for purposes of submitting the Employer Information Report EEO-1 (Standard Form 100). (e) The count of veterans reported according to paragraph (a) of this clause shall be based on voluntary disclosure. Each Contractor subject to the reporting requirements at 38 U.S.C. 2012(d) shall invite all special disabled veterans and veterans of the Vietnam era who wish to benefit under the affirmative action program at 38 U.S.C. 2012 to identify themselves to the Contractor. The invitation shall state that the information is voluntarily provided, that the information will be kept confidential, that disclosure or refusal to provide the information will not subject the applicant or employee to any adverse treatment, and that the information will be used only'in accordance with the regulations promulgated under 38 U.S.C. 2012. INITIALS: & Lessor Government GSA FORM 3517 PAGE 16 (REV 10/89) (f) The Contractor shall include the terms of this clause in every subcontract or purchase order of $10,000 or more unless exempted by rules, regulations, or orders of the Secretary. 37. 52.222-36 - AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS (APR 1984) (Applicable to leases which exceed $2,500.) (a) General. (1) Regarding any position for which the employee or applicant for employment is qualified, the Contractor shall not discriminate against any employee or applicant because of physical or mental handicap. The Contractor agrees to take affirmative action to employ, advance in employment and otherwise treat qualified handicapped individuals without discrimination based upon their physical or mental handicap in all employment practices such as -- (I) Employment; (ii) Upgrading; (iii) Demotion or transfer; (iv) Recruitment; (v) Advertising; (vi) Layoff or termination; (vii) Rates of pay or other forms of compensation; and (viii) Selection for training, including apprenticeship. (2) The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor (Secretary) issued under the Rehabilitation Act of 1973 (29 USC 793) (the Act), as amended. (b) Postings. (1) The Contractor agrees to post employment notices stating (i) the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified handicapped individuals and (ii) the rights of applicants and employees. (2) These notices shall be posted in conspicuous places that are available to employees and applicants for employment. They shall be in a form prescribed by the Director, Office of Federal Contract Compliance Programs, Department of Labor (Director), and provided by or through the Contracting Officer. ; (3) The Contractor shall notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract under -standing, that the Contractor is bound by the terms of Section 503 of the Act and is committed to take affirmative action to employ, and advance in employment, qualified physically and mentally handicapped individuals. (c) Noncompliance. If the Contractor does not comply with the requirements of this clause, appropriate actions may be taken under the rules, regulations, and relevant orders of the Secretary issued pursuant to the Act. (d) Subcontracts. The Contractor shall include the terms of this clause in every subcontract or purchase order in excess of $2,500 unless exempted by rules, regulations, or orders of the Secretary. The Contractor shall act as specified by the Director to enforce the terms, including action for noncompliance. 38. 52.219-9 - SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS SUBCONTRACTING PLAN (APR 1984) (Applicable to leases which exceed $500,000.) This clause incorporates the clause at FAR 52.219-9 by reference. It has the same force and effect as if it were -included in full text. INITIAL'S: �& Lessor Government GSA FORM 3517 PAGE 17 (REV 10;89) 39. 52.219-16 LIQUIDATED DAMAGES --SMALL BUSINESS SUBCONTRACTING PLAN (VARIATION) (AUG 1989) (a) "Failure to make a good faith effort to comply with the subcontracting plan," as used in this clause, means a willful or intentional failure to perform in accordance with the requirements of the subcontracting plan approved under the clause in this contract entitled "Small Business and Small Disadvantaged Business Subcontracting Plan," or willful or intentional action to frustrate the plan. (b) If, at contract completion, or in the case of a commercial products plans, at the close of the fiscal year for which the plan is applicable, the Contractor has failed to meet its subcontracting goals and the Contracting Officer decides in accordance with paragraph (c) of this clause that the Contractor failed to make a good faith effort to comply with its subcontracting plan, established in accordance with the clause in this contract entitled Small and Small Disadvantaged Business Subcontracting Plans, the Contractor shall pay the Government liquidated damages in an amount stated. The amount of damages attributable to the Contractor's failure to comply shall be an amount equal to the actual dollar amount by which the Contractor failed to achieve each subcontract goal or, in the case of a commercial products plan, that portion of the dollar amount allocable to Government contracts by which the Contractor failed to achieve each subcontract goal. (c) Before the Contracting Officer makes a final decision that the Contractor has failed to make such good faith effort, the Contracting Officer shall give the Contractor written notice specifying the failure and permitting the contractor to demonstrate what good faith efforts have been made. Failure to respond to the notice may be taken as an admission that no valid explanation exists. If, after consideration of all pertinent data, the Contracting Officer finds that the Contractor failed to make a good faith effort to comply with the subcontracting plan, the Contracting Officer shall issue a final decision to that effect and require that the contractor pay the Government liquidated damages as provided in paragraph (b) of this clause. (d) The Contractor shall have right of appeal, under the clause in this contract entitled Disputes, from any final decision of the Contracting Officer. (e) Liquidated damages shall be in addition to any other remedies that the Government may have. 40. 52.209-6 - PROTECTING THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR DEBARMENT (MAY 1989) (a) The Government suspends or debars Contractors to protect the Government's interests. Contractors shall not enter into any subcontract equal to or in excess of $25,000 with a Contractor that has been debarred, suspended, or proposed for debarment unless there is a compelling reason to do so. If a Contractor intends to subcontract with a party that is debarred, suspended, or proposed for debarment (see FAR 9.404 for information on the list of Parties Excluded from Procurement Programs), a corporate officer or designee of the Contractor shall notify the Contracting Officer, in writing, before entering into such subcontract. The notice must include the following: (1) The name of the subcontractor, (2) The Contractor's knowledge of the reasons for the subcontractor being on the list of Parties Excluded from Procurement Programs; (3) The compelling reason(s) for doing business with the subcontractor notwithstanding its incll:sion on the list of Parties Excluded from Procurement Programs; and (4) The systems and procedures the Contractor has established to ensure that it is fully protecting the Government's interests when dealing with such subcontractor in view of the specific basis for the party's debarment, suspension, or proposed debarment. INITIALS:& Lessor Government GSA FORM 3517 PAGE 18 (REV 10,189) e (b) The Contractor's compliance with the requirements of 52.209-6 will be reviewed during Contractor Purchasing System Reviews (see FAR Subpart 44.3). 41. 52.203-7 - ANTI -KICKBACK PROCEDURES (OCT 1988) (a) Definitions. "Kickback," as used in this clause, means any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to any prime Contractor, prime Contractor employee, subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or in connection with a subcontract relating to a prime contract. "Person," as used in this clause, means a corporation, partnership, business association of any kind, trust, joint-stock company, or individual. "Prime contract," as used in this clause, means a contract or contractual action entered into by the United States for the purpose of obtaining supplies, materials, equipment, or services of any kind. "Prime Contractor," as used in this clause, means a person who has entered into a prime contract with the United States. "Prime Contractor employee," as used in this clause, means any officer, partner, employee, or agent of a prime•Contractor. "Subcontract," as used in this clause, means a contract or contractual action entered into by a prime Contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services of any kind under a prime contract. "Subcontractor," as used in this clause, (1) means any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and (2) includes any person who offers to furnish or furnishes general supplies to the prime Contractor or a higher tier subcontractor. "Subcontractor employee," as used in this clause, means any officer, partner, employee, or agent of a subcontractor. (b) The Anti -Kickback Act of 1986 (41 U.S.C. 51-58) (the Act), prohibits any person from-- (1) Providing or attempting to provide or offering to provide any kickback; (2) Soliciting, accepting, or attempting to accept any kickback; or (3) Including, directly or indirectly, the amount of any kickback in the contract price charged by a prime Contractor to the United States or in the contract price charged by a subcontractor to a prime Contractor or higher tier subcontractor. (c)(1) The Contractor shall have in place and follow reasonable procedures designed to prevent and detect possible violations described in paragraph (b) of this clause in its own operations and direct business relationships. (2) When the Contractor has reasonable grounds to believe that a violation described in paragraph (b) of this clause may have occurred, the Contractor shall promptly report in writing the possible violation. Such reports shall be made to the inspector general of the contracting agency, the head of the contracting agency if the agency does not have an inspector general, or the Department of Justice. INITIALS: Lessor Government GSA FORM 3517 PAGE 19 (REV 10/89) (3) The Contractor shall cooperate fully with any Federal agency investigating a possible violation described in paragraph (b) of this clause. (4) The Contracting Officer may (i) offset the amount of the kickback against any monies owed by the United States under the prime contract and/or (ii) direct that the Prime Contractor withhold from sums owed a subcontractor under the prime contract, the amount of the kickback. The Contracting Officer may order that monies withheld under subdivision (c)(4)(ii) of this clause be paid over to the Government unless the Government has already offset those monies under subdivision (c)(4)(i) of this clause. In the either case, the Prime Contractor shall notify the Contracting Officer when the monies are withheld. (5) The Contractor agrees to incorporate the substance of this clause, including subparagraph (c)(5) but excepting subparagraph (c)(1), in all subcontracts under this contract. 42. 52.203-9 REQUIREMENT FOR CERTIFICATE OF PROCUREMENT INTEGRITY - MODIFICATION (MAY 1989) (Applicable to leases which exceed $100,000.) (a) Definitions. The definitions set forth in FAR 3.104-4 are hereby incorporated in this clause. (b) The contractor agrees that it will execute the certification set forth in paragraph (c) of this clause, when requested by the contracting officer in connection with the execution of any modification of this contract. A contract modification may not be executed without the certification. (c) Certification. As required in paragraph (b) of this clause, the officer or employee responsible for the modification proposal shall execute the following certification: CERTIFICATE OF PROCUREMENT INTEGRITY - MODIFICATION (MAY 1989) (1) I, (Name of certifier], am the officer or employee responsible for the preparation of this modification proposal and hereby certify that, to the best of my knowledge and belief, with the exception of any information } described in this certification, I have no information concerning a violation or possible violation of subsections 27(a), (b), (c), or (e) of the Office of Federal Procurement Policy Act* (41 U.S.C. 423) (hereinafter referred to as "the Act"), as implemented in the FAR, occurring during the conduct of this procurement [contract and modification number]. (2) As required by subsection 27(d)(1)(9) of the Act, I further certify that each officer, employee, agent, representative, and consultant of [Name of Offeror] who has participated personally and substantially in the preparation or submission of this proposal has certified that he or she is familiar with, and will comply with, the requirements of subsection 27(a) of the Act, as implemented in the FAR, and will report immediately to me any information concerning a violation or possible violation of subsections 27(a), (b), (c), or (e) of the Act, as implemented in the FAR, pertaining to this procurement. (3) Violations or possible violations: (Continue on plain bond paper if necessary and label Certificate of Procurement Intearity-Mode ication ontinuation Sheet), ENTER "NONE" IF NONE EXISTS) signature of the officer or employee responsible for the modification proposa il and date) - typed name of the officer or employee responsible for the modification proposal] INITIALS: 4—b Lessor Government GSA FORM 3517 PAGE 20 (REV 10/89) *Section 27 became effective on July 16, 1989. THIS CERTIFICATION CONCERNS A MATTER WITHIN THE JURISDICTION OF AN AGENCY OF THE UNITED STATES AND THE MAKING OF A FALSE, FICTITIOUS, OR FRAUDULENT CERTIFICATION MAY RENDER THE MAKER SUBJECT TO PROSECUTION UNDER TITLE 18, UNITED STATES CODE, SECTION 1001. (End of certification) (d) In making the certification in paragraph (2) of the certificate, the Contractor may rely upon the certification by an officer, employee, agent, representative, or consultant that such person is in compliance with the requirements of subsections 27(a), (b), (c), or (e) of the Office of Federal Procurement Policy Act (41 U.S.C. 423), as implemented in the FAR, unless the Contractor knows, or should have known, of reasons to the contrary. The Contractor may rely upon periodic certifications that must be obtained at least annually, supplemented with periodic training programs. These certifications shall be maintained by the contractor for a period of 6 years from the date of execution. (e) The certification required by paragraph (c) of this clause is a material representation of fact upon which reliance will be placed in executing this modification. 43. 552.203-10 REMEDIES FOR ILLEGAL OR IMPROPER ACTIVITY (JUL 1989) (Applicable.to leases which exceed $25,000.) (a) If the agency head or designee determines that there was a violation of subsection 27(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 423) as implemented in the Federal Acquisition Regulation, the Government, at its election, may -- (1) Reduce the monthly rental under this lease by 5 percent of the amount of the rental for each month of the remaining term of the lease, including any option periods, and recover 5 percent of the rental already paid; (2) Reduce payments for alterations not included in monthly rental payments by 5 percent of the amount of the alterations agreement; or (3) Reduce the payments for violations by a Lessor's subcontractor by an amount not to exceed the amount of profit or fee reflected in the subcontract at the time the subcontract was placed. (b) Prior to making a determination as set forth above, the agency head or designee shall provide to the Lessor a written notice of the action being considered and the basis therefor. The Lessor shall have a period determined by the agency head or designee, but not less than 30 calendar days after receipt of such notice, to submit in person, in writing, or through a representative, information ana argument in opposition to the proposed reduction. The agency head or designee may, upon good cause shown, determine to deduct less than the above amounts from payments. (c) The rights and remedies of the Government specified herein are not exclusive, and are in addition to any other rights and remedies provided by law or under this lease. 44. NOTIFICATION OF PCB HAZARDOUS CONDITION (NOV 1985) The lessor shall promptly notify the Contracting Officer and the tenant agency official of any leaks, spills, or other hazardous conditions which involve PCBs in any area of the building. �� INITIALS:j�lAff 6 - Lessor Government GSA FORM 3517 PAGE 21 (REV 14/89) 45. WARRANTY OF SPACE (OCT 1986) (a) Notwithstanding inspection and acceptance by the Government or any provision concerning the conclusiveness thereof, the lessor warrants that all space leased to the Government under this contract, spaces above suspended ceilings in the leased space, air plenums elsewhere in the building which service the leased space, engineering spaces in the same ventilation zone as the leased space, public spaces and common use space (e.g., lobbies, hallways) will, at the time of acceptance and during the term of the lease contract, comply with the asbestos requirements of this contract. The contracting officer shall notify the lessor in writing, within 30 days after the discovery, of any failure to comply with the asbestos requirements. (b) If the lessor fails, after receipt of notice, to make correction within the specified period of time, the Government shall have the right to make correction and charge to the lessor the costs occasioned to the Government or terminate the lease agreement at no cost to the Government. (c) The rights and remedies of the Government in this clause are in addition to any other rights and remedies provided by law and under this contract. (d) Definitions. (1) "Acceptance", as used in this clause means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, the leased premises as ready for occupancy or approves a portion of the premises for occupancy in accordance with the provisions of this lease contract. (2) "Correction", as used in this clause, means (i) the removal, encapsulation or enclosure of any friable asbestos materials found in the space leased to the Government, spaces above suspended ceilings in the leased space, air plenums elsewhere in the building which service the leased space, public spaces, engineering spaces in the same ventilation zone as the leased space and common use space (e.g., lobbies, hallways). Following such abatement actions, the lessor shall adhere to the Government's required post -asbestos -abatement air monitoring program. (ii) With regard to non -friable asbestos materials in good condition, it means the establishment and execution of a special operations and maintenance program and an abatement plan, approved by the Government, to be implemented from the time the materials are discovered through the remainder of the lease term. 46. 52.223-6 - DRUG -FREE WORKPLACE (Applicable to leases which equal or exceed $25,000.) (a) Definitions. As used in this clause, "Controlled substance" means a controlled substance in schedules I through V of section 202 of the Controlled Substances Act (21 U.S.C. 812) and as further defined in regulation at 21 CFR 1308.11-1308.15. "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes. "Criminal drug statutes" means a Federal or non -Federal criminal statute involving the manufacture, distribution, dispensing, possession or use of any controlled substance. "Drug -free workplace" means a site for the performance of work done in connection with a specific contract at which employees of the contractor are prohibited from engaging in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance. INITIALS:4&idre__ S Lessor Government GSA FORM 3517 PAGE 22 (REV 1089) "Employee" means an employee of a contractor directly engaged in the performance of work under a Government contract. "Individual' means an offeror/contractor that has no more than one employee including the offeror/contractor. (b) The Contractor, if other than an individual, shall - (1) Publish a statement notifying its employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition; (2) Establish a drug -free awareness program to inform such employees about - (i) The dangers of drug abuse in the workplace; (ii) The contractor's policy of maintaining drug -free workplace; (iii) Any available .drug counseling, rehabilitation, and employee assistance programs; and (iv) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. (3) Provide all employees engages in performance of the contract with a copy of a statement required by subparagraph (b)(1) of this clause; (4) Notify such employees in the statement acquired by subparagraph (b)(1) of this clause, that as a condition of continued employment on this contract, the employee will - (i) Abide by the terms of the statement; and (ii) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction. (5) Notify the contracting officer within ten (10) days after receiving notice under subdivision (a)(4)(ii) of this clause, from an employee or otherwise receiving actual notice of such conviction; (6) Within 30 days after receiving notice under subparagraph (a)(4) of this clause of a conviction impose the following sanctions or remedial measures on any employee who is convicted of drug abuse violations occurring in the workplace: (i) Taking appropriate personnel action against such employee, up to and including termination; or (ii) Require such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health law enforcement, or other appropriate agency. (7) Make a good faith effort to maintain a drug -free workplace through implementation of subparagraph (b)(1) through (b)(6) of this clause. (c) The Contractor, if an individual, agrees by award of the contract or acceptance of a purchase order, not to engage in the unlawful, manufacture, distribution, dispensing, possession, or use of a controlled substance in the performance of this contract. (d) In addition to other remedies available to the Government, the Contractor's failure to comply with the requirements of paragraphs (b) and (c) of this clause may, pursuant to FAR 23.506, render the contractor subject to suspension of contract payments, termination of the contract for default, and suspension or debarment-.. INITIALS: p. S Lessor Government GSA FORM 3517 PAGE 23 (REV 10/89) 47. TERMINATION - ERRONEOUS REPRESENTATION CONCERNING POLYCHLORINATED BIPHENYLS (PCB's) AND/OR HAZARDOUS WASTE MANAGEMENT (OCT 1986) (a) The certification regarding PCB's contained in the representation and certification provision of this solicitation is a material representation of fact upon which the Government relies when making award. If it is later determined that the presence of PCBs has been misrepresented, the Government reserves the right to require the Lessor, at no cost to the Government, to remove or retrofill any PCB equipment present in the building, in accordance with EPA regulations, or alternatively the Government may terminate the lease. This is in addition to other remedies available to the Government. (b) The certification regarding hazardous waste management contained in the representation and certification provision of this solicitation is a material representation of fact upon which the Government relies when making award. If it is later determined that the presence of hazardous waste, or inappropriate handling thereof, has been misrepresented, the Government reserves the right to require the Lessor, at no cost to the Government, to take the necessary action to mitigate the hazardous waste condition, in accordance with local, state and Federal laws, or alternatively the Government may terminate the lease. This is in addition to other remedies available to the Government. 48. 552.270-18 - LESSOR'S SUCCESSORS (JUN 1985) The terms and provisions of this lease and the conditions herein bind the Lessor and the Lessor's heirs, executors, administrators, successors, and assigns. INITIALS: & Lessor Government GSA FORM 3517 PAGE 24 (REV 10/89) GENERAL PROVISIONS 1. MAINTENANCE OF PREMISES - - - �. The --Lessor shall maintain the premises an property -furnished -under''" this .lease in good repair and tenantable condition during the.- -- continuance of this lease, except in case of damage arising from.the act or the negligence of the Government's agents or employees. For the purpose of so maintaining said premises and property, the Lessor may. at reasonable times approved by the Government, enter and inspect the same and make any necessary repairs thereto. 2. DAMAGE BY FIRE OR OTHER CASUALTY If the said premises be destroyed by fire or other casualty this lease shall immediately terminate. In case of partial destruction or damage, so as to render the premises untenantable, as determined by the Government, the Government may terminate the lease by giving written notice to the Lessor within fifteen (15) days thereafter; if so terminated no rent shall accrue to the Lessor after such partial destruction or damage; and if not so terminated the rent shall be reduced proportionately by supplemental agreement hereto effective from the date of such partial destruction or damage. 3. ALTERATIONS The Government may make alterations, attach fixtures or signs and erect structures in or upon the leased premises, all of which shall be the property of the Government. 4 4. CONDITION REPORT A joint physical survey and inspection report of the demised premises shall be made as of the effective date of this lease, reflecting the then present condition, and will be signed on behalf of the parties hereto. S. OFFICIALS NOT TO BENEFIT No Member of or Delegate to Congress, or Resident Commissioner shall be admitted to any share or part of this lease contract, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this lease contract if made with a corporation for its general benefit. 6. APPLICABLE CODES AND ORDINANCES The Lessor, as part of the rental consideration, agrees to comply with all codes and ordinances applicable to the ownership and operation of the building in which the leased space is situated and, at his own expense, to obtain all necessary permits and related items. 1 i. LESSOR'S SUCCESSORS provisinus_ of this lease and. the _conditions 1derein:.sha].L.; _. bind: the -Lessor; and- the Lessor's -,heirs, executors, administrators; successors, and assigns. • 8. COVENANT AGAINST CONTINGENT FEES The Lessor warrants that no person or selling agency has been employed or retained' to solicit or secure this lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Lessor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this lease without liability or in its discretion to deduct from the rental price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage or contingent fee. (Licensed real estate agents or brokers having listings on property for rent, in accordance with general business practice, and who have not obtained such licenses for the sole purpose of effecting this lease, may be considered as bona fide employees or agencies within the exception contained in this clause.) 9. FACILITIES NONDISCRIMINATION (a) As used in this section, the term 'facility' means stores, shops, restaurants, cafeterias, restrooms, and any other facility of a public nature in the building in which the space covered by this lease is located. (b) The Lessor agrees that he will not discriminate by segregation or otherwise against any person or persons because of race, creed, color, or national origin in furnishing, or by refusing to furnish, to such person or persons the use of any facility, including any and all services, privileges, accommodations, and activities provided thereby. Nothing herein shall require the furnishing to the general public of the use of any facility customarily furnished by the Lessor solely to tenants, their employees, customers, patients, clients, guests and invitees. (c) It is agreed that the Lessor's noncompliance with the provisions of this section shall constitute a material breach of this lease. In the event of such noncompliance, the Government may take appropriate action to enforce compliance, may terminate this lease, or may pursue such other remedies as may be provided by law. In the event of termination, the Lessor shall be liable for all excess costs of the Government in acquiring substitute space, including but not limited to the cost of moving to such space. Substitute space shall be obtained in as close proximity to the Lessor's building as is feasible and moving costs will be limited to the actual expenses thereof as incurred. - 3 - (d) It is flurther agreed that from and after the date hereof the - Lessor will, at such time as any agreement is to be entered into or a concession is to be permitted to operate, include or require the inclusion of the foregoing provisions of this section in every such agreement or concession pursuant to which any person other than the Lessor operates or has the right to operate any facility. Nothing herein contained, however, shall be deemed to require the Lessor to include or require the inclusion of the foregoing provisions of this section in any existing agreement or concession arrangement or one in which the contracting party other than the Lessor has the unilateral right to renew or extend the agreement or arrangement, until the expiration of the existing agreement or arrangement and the unilateral right to renew or extend. The Lessor also agrees that it will take any and all lawful actions as expeditiously as possible, with respect to any such agreement as the contracting agency may direct, as a means of enforcing the intent of this section, including, but not limited to, termination of the agreement or concession and institution of court action. 10. EXAMINATION OF RECORDS (NOTE: This provision is applicable if this lease was negotiated without advertising.) a. The Lessor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of 3 years after final payment under this lease, have access to and the right to examine any directly pertinent books, documents, papers, and records of the Lessor involving transactions related to this lease. b. The Lessor further agrees to include in all his subcontracts hereunder a provision to the effect that the subcontractor agrees that the Comptroller General of the United States or his representatives shall, until the expiration of 3 years after final payment under this lease with the Government, have access to and the right to examine any directly pertinent books, documents, papers, and records of such subcontractor involving transactions related to the subcontract. 11. PAYMENT DUE DATE The initial monthly rental payment under this contract shall become due on the first workday of.the month following the month in which the lease or supplemental agreement establishing commencement of the .lease term is executed, or the first workday -of the month following the month in which the occupancy of -space is effective, whichever is later. Subsequent rent shall be paid in arrears, and will be due on the first workday of each successive month, and only as provided for by the lease. 4 r 12. INSTRUCTIONS Whenever the lease is executed by an attorney, agent, or other person, or corporation on behalf of the Lessor, the name of the Lessor shall appear above the signature of the person signing. 9 MEMO 4-15-85 To: Jim Bertram, Asst. City Manager for Development Services From: Marvin Coffee, Director of Aviation Subject: Lubbock U.S. Customs office The Lubbock Customs office and the Amarillo Customs office operate equally with one Port Director over both offices. The Lubbock office, besides the Port Director, has one full time employee. If the Lubbock office were to be closed either Houston or Dallas would be the location for clearing customs. Anyone in Lubbock importing any goods would need to travel to Houston or Dallas to personally clear their ship- ment at the time designated, or they could hire a broker to take care of clearing customs. If this office is closed there would be a loss of a source of information and service to the public and camera and valuables registration could not be provided in Lubbock. There would be a problem getting shipments into Lubbock. Also some aircraft are now being cleared which would, require that another port of entry be used. The volume of activity is sufficient to keep one person busy full time. The full time employee provides information and services that in a larger; location is divided between several people. As far as the cost of the operation of this facility all after hours services requiring overtime -is offset by the charges. The office space is currently provided by the Airport with utilities being reimbursed by the Airlines in Lubbock. The office expense not now .being recovered is salaries, telephone, travel and office supplies. The Port Director advised he would provide this information by Wednesday this week. With the renewed activity in securing new businesses and industry I think we should -do what we can to retain this operation in Lubbock. I understand the City of Midland has been trying unsuccesfully for years to secure a customs office. If we lost this facility it would be very difficult to get it re-established. Marvin Coffee co, �7`'�-'�- Director of Aviation