THE CONTRACT I93 



the Committee, and (3) that he would include the provisions of the patent 

 clause in all contracts of employment with persons who did any part of 

 the work called for by the contract. 



As practically all the work contemplated by the Committee was to be 

 of a classified nature, four articles relating to security were included in the 

 contract. The contractor agreed (i) never to disclose any information con- 

 cerning the contract or obtained as a result of the work under the contract 

 to any person, except employees assigned to the work, without the written 

 consent of the Committee or its authorized representative; (2) to submit 

 immediately a confidential report to the Committee whenever, for any 

 cause, he had reason to believe that an active danger of espionage or sabo- 

 tage existed at the site of the work; (3) to report to the Committee the 

 citizenship, country of birth, or alien status of any or all of his employees 

 at the site of, or having access to, any of the work under the contract, 

 whenever requested by the Committee or an authorized representative, and 

 (4) to exclude from the site of the work and to discharge or transfer, and 

 thereafter to exclude from the site of the work, any person or persons 

 designated by the Committee or its authorized representative, for cause, 

 as undesirable to have access to the work under the contract. 



In a concluding paragraph the contractor agreed to permit representa- 

 tives of the Committee to visit and inspect the work under the contract 

 and to report the progress of the work from time to time as requested by 

 the Committee or an authorized representative. 



At its meeting on September 27, 1940, the Committee adopted a ter- 

 mination clause which provided that at any time the Committee decided 

 the work under a contract could not profitably be carried to conclusion, it 

 might terminate the contract upon thirty days' notice. In cases where the 

 right to terminate was exercised, the Committee agreed to indemnify the 

 contractor against loss upon outstanding commitments which he was unable 

 to cancel. 



Experience under the contract showed, as was to be expected, the need 

 for new provisions and for revision of some of those originally adopted. 

 In particular the fiscal provisions required expansion and articles had to be 

 inserted to cover certain statutory requirements. By the time the NDRC 

 as a part of OSRD recommended that the Director follow the NDRC 

 contract, that document had considerably expanded over the simpler one 

 of August 29, 1940. A careful study of the standard contract was made in 

 1942 under the direction of John T. Connor, the OSRD General Counsel, 

 and in January 1943, a revised form was adopted. With only one major 

 change that revision, known as Standard Form looi, was used thereafter 

 for new OSRD research contracts, and earlier contracts were changed to 

 that form as occasion arose to amend them for other reasons. As it repre- 



