(

(

For purposes of verifying that certified cost or pricing data submitted

in conjunction with the negotiation of this Subcontract or any subcontract

change or other modification involving an amount in excess of $100,990

were accurate, complete, and current, the Contractor, the ERDA or authorized representatives of either shall, until the expiration of three
years from the date of Final payment under this Subcontract, have the
right to examine those books, records, documents, papers, and other

supporting data which involve traasactions related to this Subcontract or

which will permit adequate evaluation of

the cost or pricing data submitted

along with the computations and projections used therein. |
Whenever the price of any change or other modification to this Subcontract
is expected to exceed $100,000, the Subcontractor agrees to Furnish the
Contractor certified cost or pricing data, using the certificate set
forth in paragraph b. above, unless the price is based on adequate price
competition, established catalog or market prices of commercial items
sold in substantial quantities to the general public, or prices set by
law or regulation.
The requirement for submission of certified cost or pricing data with
respect to any change or other modification does not apply to any lowertier subcontract change or other modification, at any tier, where the
subcontract is firm fixed-price or fixed-price with escalation unless

such change or other modification results from a change or other modification to the subcontract, nor does it apply to a lower-tier subcontract
change or modification, at any tier, where the subcontract is not firm
fixed-price or fixed-price with escalation, unless the price of such

change or other modification becomes reimbursable under the subcontract.

The Subcontractor agrees to insert paragraph c. without change” and ‘the *
substance of paragraphs a., b., d., e., and £. of this Article in each
lower-tier subcontract hereunder, in excess of $100,000, and in each

lower~tier subcontract of $100,000:or less at the time of making a change
or other modification thereto in excess of $100,000.

If the Contractor determines that any price, including profit or fee,
negotiated in connection with this Subcontract or any cost reimbursable
under this Subcontract was increased by any significant sums because the
Subcontractor, or any lower-tier subcontractor pursuant to this Article
or any lower-tier subcontract Article herein required, furnished incomplete
or inaccurate cost or pricing data or data not current as certified in
the Subcontractor's Certificate of Current Cost or Pricing Data, then
such price or cost shall be reduced accordingly and the Subcontract shall

be modified in writing to reflect such reduction.

°

Failure of the Contractor and the Subcontractor to agree on any of the
matters in paragraph g. above shall be a dispute concerning a questioa of

fact within the meaning of the "Disputes" Article of this Subcontract.

The words "subcontractoc" and "Jower~tier subcontract” may, hevever, be changed

to describe the contractual relationship in lover-tier subcontracts.

5008101

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