340 APPENDIX 2 



(b) Termination. The Contractor shall proceed with the subject work until 



or until such later date as may be authorized in writing by 

 the Contracting Officer and agreed to by the Contractor. 



(c) Acceleration of Termination. The Contracting Officer may at any time 

 advance the date fixed under paragraph (b) by giving the Contractor thirty (30) 

 days' notice in writing that the subject work shall terminate at a specified 

 earlier date. Upon receipt of such notice the Contractor shall exercise all reasonable 

 diligence to obtain the cancellation of its outstanding commitments hereunder 

 running beyond such earlier date, but any reasonable cancellation charges in- 

 curred thereby by the Contractor and any reasonable loss upon outstanding com- 

 mitments which it is unable to cancel shall be reimbursable hereunder. 



(d) Inspections. The Contracting Officer or the Scientific OflEcer may inspect the 

 subject work at all reasonable times. 



(e) Subcontracts. No subcontract executed hereunder shall provide for (i) pay- 

 ment on a cost-plus-a-percentage-of-cost basis or (ii) the payment of a fixed fee 

 in excess of seven per centum of the estimated cost, exclusive of the fee. The 

 Contractor shall not enter into subcontracts involving research or development 

 of the kind contemplated by this contract without obtaining the written approval 

 of the Scientific Officer as to the substance and the Contracting Officer as to the 

 form thereof. The Contractor shall refer each prospective subcontract which 

 might involve such research or development to the Scientific Officer, who shall 

 determine whether or not such research or development is involved. 



(f) Special Property Acquisition. The Contractor shall obtain the approval of 

 the Contracting Officer before (i) purchasing motor vehicles, (ii) making any 

 building alteration at a cost of $500.00 or more, (iii) constructing buildings, or 

 (iv) leasing, purchasing or otherwise acquiring real property, for the cost of any 

 of which reimbursement will be claimed hereunder. 



(g) Property Furnished Directly by the Government. The Government may 

 furnish to the Contractor materials, supplies, apparatus, equipment or other 

 property for use in the performance of the subject work, and such property shall 

 be used by the Contractor only for purposes approved by the Scientific Officer. 



(h) Definitions. "Contracting Officer" refers to the present Contracting Officer 

 and his successors in office. "Scientific Officer" refers to the present Scientific 

 OflScer and his successors in office. Scientific assistants may act for and on behalf 

 of the Scientific Officer in every respect under this contract except in connection 

 with subcontracts under Article i (e) hereof. The Scientific Officer may designate 

 scientific assistants in addition to, or in substitution for, those initially designated 

 below, by naming such assistants in writing and lodging a copy of such designa- 

 tion with the Contractor by transmitting such copy through the Contracting 

 Officer. The following persons are hereby initially designated as scientific assistants: 



ARTICLE 2. (a) Reimbursement for Costs. The Government shall reimburse 

 the Contractor, upon the submission of public vouchers supplied by the Govern- 

 ment and approved by the Contracting Officer, for the "actual cost" to the Con- 

 tractor of performance of its undertakings hereunder in an amount not exceeding 



($ ). 



The Contractor may submit such vouchers at monthly intervals for "actual cost" 



