SECTION I - ARTICLES
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THIS CONTRACT is made this _____ day of ????, 1997, by and between the LARGE BINOCULAR TELESCOPE CORPORATION (LBTC), and YYYYYYY (the Supplier)
RECITALS:
WHEREAS, LBTC, an Arizona Nonprofit Corporation, is a collaboration between: The University of Arizona,Tucson, Arizona; the Italian astronomical community, which is represented by the Arcetri Astrophysical Observatory, Florence, Italy; the Research Corporation of Tucson, Arizona; The Ohio State University of Columbus, Ohio; and the LBT Beteiligungsgesellschaft, a consortium of German Astronomy Research Institutions. The broad purpose of LBTC is to carry out scientific research and education in astronomy by constructing and then operating the Large Binocular Telescope (LBT) as a facility at the Mt. Graham International Observatory, near Safford, Arizona
WHEREAS, the Large Binocular Telescope Project Office (LBTPO), as the authorized agent of the LBTC, is responsible for the design, procurement, and construction of the altitude/azimuth binocular telescope with two 8.4-meter mirrors.
WHEREAS, the Supplier YYYYYYY
CONTRACT:
NOW, THEREFORE, the LBTC and the Supplier agree as follows:
Article 2 - ALLOWABLE COST AND PAYMENT
Payment schedules and conditions will be negotiated within the framework of the following:
The Large Binocular Telescope Project Office
Steward Observatory
The University of Arizona
Tucson, AZ 85721-0065 USA
"I hereby certify that the above bill is correct and just, that payment therefor has not been received, and that the bill is presented with the knowledge that the amount paid hereunder will become the basis of a claim against the LBTC."
_________________________________________
Authorized Signature
Article 5 - AMENDMENT
This Contract and the attachments hereto shall not be deemed or construed to be modified,
amended or waived, in whole or in part, except by written agreement duly executed by the
parties to this Contract.
Article 6 - SUBCONTRACTS
No contract shall be made by the Supplier with any other party for furnishing any of the
completed or substantially completed articles or work herein contracted for, without the
written approval of the LBTC.
Article 7 - ASSIGNMENT OF CONTRACT
The Supplier shall not assign this Contract in whole or in part.
Article 8 - ASSIGNMENT OF CLAIMS
Any monies due or to become due hereunder may be assigned, provided that such assignment
shall not be binding upon the LBTC until receipt of a copy of the assignment agreement is
acknowledged and approved by the LBTC in writing.
Article 9 - CONTRACT ADMINISTRATION
Notwithstanding any other provisions of this Contract or any document referenced herein,
the LBT Project Director, or cognizant designee, are the only individuals authorized to
make the changes in or redirect the work required by this Contract. Where LBTC's approval
is required under the terms of this Contract, it shall be construed to mean the approval
of the LBT Project Director or cognizant designee. In the event the Supplier effects
any change at the direction of any other person, the change will be considered as having
been made without authority and an adjustment will not be made in the Contract estimated
cost or delivery schedule as a result thereof.
Article 10 - TECHNICAL OVERSIGHT
LBT will designate a Technical Representative for each contract at the time of contract award. The Technical Representative will provide a direct interface from the LBTC to the Supplier. All communications between the Technical Representative and the Supplier will be copied to the LBTPO. The Technical Representative will oversee the engineering management of the contract to ensure that the components are manufactured accurately and perform satisfactorily, by, among other things, reviewing and approving drawings and plans developed by the contractors; providing quality control over the manufacturing process; supervising the testing and evaluating the finished Components.
Representatives from the LBTC shall have the right, at all reasonable times, to come on the premises of the Supplier and inspect the work being performed hereunder. Such visits shall include the right to discuss with appropriate personnel the work being performed and the progress thereof. All such visits shall be at the expense of the LBTC.
Technical direction to the supplier, to be valid, shall:
Article 12 - RESPONSIBILITY FOR SUPPLIES
Article 13 - TOTAL AGREEMENT
This agreement supersedes all prior offers, negotiations, or agreements concerning
the subject matter herein and constitutes the total agreement of the parties hereto.
Any representations, discussions, or negotiations carried on contemporaneously
with the execution of this Contract or prior thereto are conclusively presumed to have
been incorporated herein.
In Witness whereof the parties hereto have executed this Contract with the effective date as shown on page one (1) of this document.
FOR SUPPLIER WXYZ, INC.
BY________________________________________
TYPED________________________________________
TITLE________________________________________
DATE ________________________________________
FOR THE LBT CORPORATION
BY________________________________________
TYPED________________________________________
TITLE________________________________________
DATE ________________________________________
General Provision 2 - INTELLECTUAL PROPERTY
In the event that either party shall create or invent, or cause to be created or invented, in connection with the work, any process, material or device protected under any patent or copyright law ("Intellectual Property"), the parties agree that the other party shall have the right to use, at no expense to such other party, such Intellectual Property.
General Provision 3 -
COMPLIANCE WITH INTERNATIONAL, FEDERAL, STATE, AND LOCAL LAWS
The Supplier shall comply with all International, Federal, State, Municipal and local laws, rules and regulations that may be applicable to this Contract and, at the request of the LBTC, the Supplier will furnish certificates to the effect that it has complied with said laws and regulations.
In the United States, the Supplier represents that it has complied and will continue to comply during the performance of this Contract with the provisions of the "Fair Labor Standards Act" 1938, as amended, and the "Occupational Safety and Health Act", with the "Americans with Disabilities Act of 1990" and with the regulations and standards issued pursuant thereto.
The Supplier, in all matters relating to this contract, shall be acting as an independent contractor. Neither the Supplier nor any of the persons furnishing materials or performing work or services which are required by this Contract shall be considered employees of the LBTC.
The Supplier, at its own expense, shall comply with such laws, and assume all obligations imposed by any one or more of such laws with respect to this Contract.
General Provision 4 - DISPUTE RESOLUTION
All claims, disputes or other matters in controversy (herein called "dispute") arising directly or indirectly out of or related to this Contract, or the breach thereof, whether contractual or noncontractual, and whether during the term or after the termination of this Agreement, shall be resolved exclusively according to the procedures set forth in this Section.
4.1 Mediation.
Neither party shall commence an arbitration proceeding unless such party shall first give a written notice (a "Dispute Notice") to the other party setting forth the nature of the dispute. The parties shall attempt in good faith to resolve the dispute by mediation under the Commercial Mediation Rules of the American Arbitration Association (AAA) in effect on the date of the Dispute Notice. If the parties cannot agree on the selection of a mediator within twenty (20) days after delivery of the Dispute Notice, the mediator will be selected by the AAA. If the dispute has not been resolved by mediation as provided above within sixty (60) days after delivery of the Dispute Notice, then the dispute shall be determined by arbitration.
4.2 Arbitration
4.2.1 Any dispute that is not settled through mediation shall be resolved by arbitration in Tucson, Arizona, governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq, and administered by the American Arbitration Association under its Commercial Arbitration Rules in effect on the date of the Dispute Notice. In the event the parties cannot agree on a mutually acceptable single arbitrator from the one or more lists submitted by the AAA, the AAA shall designate three persons who, in its opinion, are qualified to act as arbitrators in this matter. Each party shall be entitled to strike one of such three designees on a peremptory basis, indicating its order of preference with respect to the remaining designees, and the selection of the arbitrator(s) shall be made from among such designee(s) which have not been so stricken by either party in accordance with their indicated order of mutual preference. The arbitrator(s) shall base their award on applicable law and judicial precedent and, unless both parties agree otherwise, shall include in such award the findings of fact and conclusions of law upon which the award is based. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
4.2.2 Notwithstanding the foregoing, in the event the dispute is determined other than by the unanimous decision of three arbitrators, upon the application by either party to a court for an order confirming, modifying or vacating the award, the court shall have the power to review whether, as a matter of law based on the findings of fact determined by the arbitrator(s), the award should be confirmed, modified or vacated in order to correct any errors of law made by the arbitrator(s). In order to effectuate such judicial review limited to issues of law, the parties agree (and shall stipulate to the court) that the findings of fact made by the arbitrator(s) shall be final and binding on the parties and shall serve as the facts to be submitted to and relied on by the court in determining the extent to which the award should be confirmed, modified or vacated.
4.2.3 Costs and Attorneys’ Fees. If either party fails to proceed with mediation or arbitration as provided herein or unsuccessfully seeks to stay such mediation or arbitration, or fails to comply with any arbitration award, or is unsuccessful in vacating or modifying the award pursuant to a petition or application for judicial review, the other party shall be entitled to be awarded costs, including reasonable attorneys’ fees, paid or incurred by such other party in successfully compelling such arbitration or defending against the attempt to stay, vacate or modify such arbitration award and/or successfully defending or enforcing the award.
4.3 Tolling Statute of Limitation.
All applicable statutes of limitations and defenses based upon the passage of time shall be tolled while the procedures specified in this Section are pending. The parties will take such action, if any, required to effectuate such tolling.
General Provision 5 - STOP WORK ORDER
5.1 The LBTC may, at any time, by written order to the Supplier, require the Contractor to stop all, or any part of the work call for by this Contract for a period of 90 days after the order is delivered to the Contractor, and for any further period to which the parties may agree. The order shall be specifically identified as a stop work order. Upon receipt of the order, the Supplier shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within a period of 90 days after a stop work order is delivered to the Supplier, or within any extension of that period to which the parties shall have agreed, LBTC shall either:
5.4 If a stop work order is not canceled and the work covered by the order is terminated for default, LBTC shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop work order.
General Provision 6 - TERMINATION
6.1
The LBTC may terminate performance of work under this Contract in whole or, from time to time, in part, if LBTC determines that a termination is in the interest of the LBT Project. The LBTC shall terminate by delivering to the Supplier a Notice of Termination specifying the extent of termination and the effective date.
6.2 After receipt of a Notice of Termination and except as directed by LBTC, the Supplier shall immediately proceed with the following obligations:
6.4 Subject toGeneral Provision 6.3, above, the Supplier and LBTC may agree upon the whole or any part of the amount to be paid because of the termination. This amount may include reasonable cancellation charges incurred by the Supplier and any reasonable loss on outstanding commitments for personal services that the Supplier is unable to cancel: Provided, that the Supplier exercised reasonable diligence in diverting such commitments to other operations. The Contract shall be amended and the Supplier paid the agreed amount.
6.5 The LBTC may, under the terms and conditions it prescribes, make partial payments against costs incurred by the Supplier for the terminated portion of this Contract, if the LBTC believes the total of these payments will not exceed the amount to which the Supplier will be entitled.
General Provision 7 - WARRANTY
7.1 Definitions.
7.1.1 "Acceptance," as used in this General Provision, means the act of an authorized representative of LBTC by which LBTC assumes for itself, or as an agent of another, ownership of existing and identified supplies, or approves specific services rendered, as partial or complete performance of the Contract.
7.1.2 "Correction," as used in this General Provision, means the elimination of a Defect.
7.1.3 "Supplies," as used in this General Provision, means the end items furnished by the Contractor and related services required under this Contract. The word does not include "data."
7.2 Supplier's Obligations
7.2.1 The Supplier warrants that all supplies furnished under this Contract will be free from defects in material and workmanship and will conform with all requirements of this Contract; provided, however, that with respect to Customer Furnished Property, the Contractor's warranty shall extend only to its proper installation, unless the Supplier performs some modification or other work on the property, in which case the Supplier's warranty shall extend to the modification or other work.
7.2.2 Any supplies or parts thereof corrected or furnished in replacement shall be subject to the conditions of this General Provision to the same extent as supplies initially delivered. This warranty shall run from the date of delivery of the corrected or replaced supplies.
7.2.3 The Supplier shall not be obligated to correct or replace supplies if the facilities, tooling, drawings, or other equipment or supplies necessary to accomplish the correction or replacement have been made unavailable to the Supplier by action of LBTC . In the event that correction or replacement has been directed, the Supplier shall promptly notify LBTC, in writing, of the nonavailability.
7.2.4 The Supplier shall also prepare and furnish to LBTC data and reports applicable to any correction required (including revision and updating of all affected data called for under this Contract) at no increase in the Contract price.
7.2.5 When supplies are returned to the Supplier, the Supplier shall bear the transportation costs from the place of delivery specified in the Contract (irrespective of the f.o.b. point of the point of acceptance) to the Suppliers plant and return.
7.2.6 All implied warranties of merchantability and "fitness for a particular purpose" are excluded from any obligation contained in this Contract.
7.3 Remedies Available to LBTC
7.3.1 In the event of a breach of the Supplier's warranty in General Provision 7.2.1, LBTC may, at no increase in contract price:
7.3.3 LBTC shall notify the Supplier in writing of any breach of the warranty within 60 days after discovery of the defect. The Supplier shall submit to LBTC a written recommendation within 30 days as to the corrective action required to remedy the breach. After receipt of the Supplier's recommendation for corrective action, LBTC may, in writing, direct correction or replacement as in General Provision 7.3.1, and the Supplier shall notwithstanding any disagreement regarding the existence of a breach of warranty, comply with this direction. If is later determined that the Supplier did not breach the warranty in General Provision 7.2.1, the Contact price will be equitably adjusted.
7.3.4 If supplies are corrected or replaced, the period for notification of a breach of the Supplier's warranty in General Provision 7.3.3 shall be 60 days after discovery of the defect.
7.3.5 In no event shall the Supplier be liable to the LBTC for consequential damages resulting from:
7.3.6 The right and remedies (or limitations therof) provided in this General Provision are in addition to and do not limit any rights afforded by any other General Provision of this contract.
7.4 As contemplated by General Provision 7.2, the Supplier warrants the supplies furnished under this Contract for a period of time, as specified in the Contract Schedule, from the date of delivery, or if no time period is so specified then the period(s) for which the Contractor customarily warrants the supplies for its commercial customers. The Supplier shall provide LBTC with a copy of any standard warranty which is normally offered on a commercial product deliverable under this Contract. This warranty shall be deemed to be incorporated by reference, and LBTC shall be entitled to all rights under such warranty in addition to the provisions of this General Provision; however, such commercial warrant shall not be construed as limiting LBTC's rights under this General Provision.
General Provision 8 - LIMITATION OF LIABILITY
8.1
Except as provided in General Provisions 8.2 and 8.3 below, and notwithstanding any other provision of this Contract, the Supplier shall not be liable for loss of or damage to property of the LBTC (excluding the supplies delivered under this Contract) that:
8.3 If the Supplier carries insurance, or has established a reserve for self-insurance, covering liability for loss or damage suffered by the LBTC through purchase or use of the supplies required to be delivered under this Contract, the Supplier shall be liable to the LBTC, to the extent of such insurance or reserve, for loss of or damage to property of the LBTC occurring after acceptance of, and resulting from any defects or deficiencies in, the supplies delivered under this Contract.
8.4 This clause does not diminish the Supplier's obligations, to the extent that they arise otherwise under this contract, relating to correction, repair, replacement, or other relief for any defect or deficiency in supplies delivered under this contract.
If loss or damage occurs and correction, repair, or replacement is not feasible, or desired by the LBTC, the Supplier shall:
The Supplier shall, at its own expense, provide and maintain during the entire performance period of this Contract at least the following kinds and minimum amounts of insurance with LBTC named as an additional named insured in policies for comprehensive general liability and with a carrier licensed and admitted in the country of manufacturer.
9.1.1 Workers' Compensation and Employer's Liability Insurance, as required by applicable Federal and state workers; compensation and occupational disease statutes. If occupational diseases are not compensable under those statutes, they shall be covered under the Employer's Liability section of the insurance policy, except when Contract operations are so commingled with the Supplier's commercial operations that it would not be practical. The Employer's Liability coverage shall be at least $100,000, except in states with exclusive or monopolistic funds that do not permit worker's compensation to be written by private carriers. However, the Supplier in fulfillment of its obligation to provide Workers' Compensation Insurance may maintain a self-insurance program if the Supplier is qualified pursuant to statutory authority to do so.
9.1.2 Comprehensive Liability Insurance, including automobiles (owned, non-owned, or leased), completed operations products and contractual liability, for a combined single limit of not less than $1,000,000 for all deaths, injuries, and property damage arising from one accident or occurrence.
9.2 Insurance Certificates and Endorsements.
Before commencing work under this Contract, the supplier shall furnish
9.3 Indemnification.
The Supplier agrees that it will be responsible to the LBTC for and will indemnify and hold harmless the LBTC, its trustees, officers, and employees, from any loss, cost damage, expense or liability, attorney's fees, or any suit therefor, by reason of actual or alleged property damage or personal injury of whatsoever kind or character, arising out of or in connection with the performance of work hereunder by the Supplier or any of its subcontractors, howsoever the same may be caused, including any of the same resulting from alleged or actual negligent act or omission, regardless of whether such act or omission is active or passive, but excepting only such loss, cost damage, expense or liability attributable to the sole negligence or willful misconduct of the LBTC, its trustees, officers or employees.
General Provision 10 - DEFAULT
10.1
The LBTC may, subject to General Provisions 10.3 and 10.4 below, by written Notice of Default to the Contractor, terminate this Contract, in whole or in part, if the Contractor fails to:
10.3 Except for defaults of subcontractors at any tier, the Supplier shall not be liable for any excess costs if the failure to perform the Contract arises from causes beyond the control and without the fault or negligence of the Supplier. Examples of such causes include:
10.4 If the failure to perform is caused by the default of a subcontractor at any tier, and if the cause of the default is beyond the control of both the Supplier and subcontractor, and without the fault or negligence of either, the Supplier shall not be liable for any excess costs for failure to perform, unless the subcontracted supplies or services were obtainable from other sources in sufficient time for the Supplier to meet the required delivery schedule or other performance requirements.
10.5 If this Contract is terminated for default, LBTC may require the Supplier to transfer and deliver to LBTC, as directed by it, any
10.6 The LBTC shall pay the Contract price, if separately stated, for completed work it has accepted. In addition, LBTC and the Supplier may agree upon amounts for
The LBTC may withhold from these amounts any sum LBTC determines to be necessary to protect the LBTC against loss from outstanding liens or claims of former lien holders.
10.7 If, after termination, it is determined that the Supplier was not at default, or that the default was excusable, the rights and obligations of the parties shall be the same as if the termination had been issued pursuant to the General Provision of this Contract entitled "Termination for Convenience."
10.8 The right and remedies of LBTC in this General Provision are in addition to any other rights and remedies provided by law or under this Contract.
General Provision 11 [For U.S. Companies only] - NON-DISCRIMINATION
The parties agree to be bound by applicable state and federal rules governing Equal Employment Opportunity and Non-Discrimination.
General Provision 12 - KEY PERSONNEL AND FACILITIES
12.1
The personnel and/or facilities listed in Attachment C are considered essential to the work being performed under this contract. Before removing, replacing, or diverting any of the listed or specified personnel or facilities, the Subcontractor shall notify the LBTC reasonably in advance and submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on this subcontract.
12.2 The Subcontractor shall make no diversion without the LBTC's written consent; provided, that the LBTC may ratify in writing the proposed change, and that ratification shall constitute the LBTC's consent required by this clause.
12.3 The list of personnel and/or facilities may, with the consent of the contracting parties, be amended from time to time during the course of the subcontract to add or delete personnel and/or facilities.
General Provision 13 - OFFICIAL NOTICES
Unless otherwise provided in this Contract, any communication provided or permitted hereunder shall be in writing and addressed to the party for which it is intended. The Supplier shall forward official notices to the LBTC as follows:
If to the Corporation:
LBT Project Office Steward Observatory The University of Arizona Tucson, AZ 85721-0065 USA Phone: 520 626-5231 Telefax: 520 621-9843E-Mail: jhill@as.arizona.edu (LBT Director, Tucson Project Office)
cc:
salinari@arcetri.astro.it
(LBT Deputy Director, Arcetri Observatory)
jslagle@as.arizona.edu
alampis@as.arizona.edu
cevans@as.arizona.edu