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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
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      domains="(topic task)                            (topic concept)                            (topic concept glossentry)                            (topic concept glossgroup)                            (topic reference)                            (topic troubleshooting++task) (topic task)                            (topic abbrev-d)                            a(props deliveryTarget)                            (topic equation-d)                            (topic hazard-d)                            (topic hi-d)                            (topic indexing-d)                            (topic markup-d)                            (topic mathml-d)                            (topic pr-d)                            (topic relmgmt-d)                            (topic sw-d)                            (topic svg-d)                            (topic ui-d)                            (topic ut-d)                            (topic markup-d xml-d)                            (topic task strictTaskbody-c)   ">
	  <concept class="- topic/topic concept/concept "
            ditaarch:DITAArchVersion="1.2"
            id="GSAM_552_232_78">
		    <title class="- topic/title " xtrc="GSAR">
         <ph class="- topic/ph " props="autonumber">552.232-78</ph> Commercial Supplier Agreements–Unenforceable Clauses.</title>
		    <conbody class="- topic/body  concept/conbody ">
			      <p audience="GSAR" class="- topic/p " id="gFJfCD">As prescribed in <ph outputclass="ClauseProvisionXREF" class="- topic/ph "> 
               <xref class="- topic/xref "
                     href="532.706-3.dita#GSAM_532_706_3"
                     outputclass="fm:ParaNumOnly">532.706-3</xref> 
            </ph>(b), insert
the following clause:</p>
			      <p audience="GSAR"
            class="- topic/p "
            id="uqzxHd"
            outputclass="Ctr_SmCaps"> Commercial Supplier Agreements–Unenforceable
Clauses (Feb 2018) </p>
			      <p audience="GSAR" class="- topic/p " id="MTjGgh">When any supply or service acquired
under this contract is subject to a commercial supplier agreement
(as defined in <xref class="- topic/xref "
                  href="502.101.dita#GSAM_502_101"
                  outputclass="fm:ParaNumOnly">502.101</xref>), the following
language shall be deemed incorporated into the commercial supplier
agreement. As used herein, “this agreement” means the commercial
supplier agreement:</p>
			      <ol class="- topic/ol " id="d848e31">
				        <li audience="GSAR" class="- topic/li " id="nAKVHG">
					          <p audience="GSAR" class="- topic/p " id="d840e35">
                  <ph class="- topic/ph " props="autonumber">(a)</ph>Notwithstanding
any other provision of this agreement, when the end user is an agency
or instrumentality of the U.S. Government, the following shall apply:</p>
					          <ol class="- topic/ol " id="d848e41">
						            <li audience="GSAR" class="- topic/li " id="MZwQgO">
							              <p audience="GSAR" class="- topic/p " id="d840e45">
                        <ph class="- topic/ph " props="autonumber">(1)</ph>
                        <i class="+ topic/ph hi-d/i ">Applicability</i>.
This agreement is part of a contract between the commercial supplier
and the U.S. Government for the acquisition of the supply or service
that necessitates a license or other similar legal instrument (including
all contracts, task orders, and delivery orders under FAR Parts
13, 14 or 15).</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="HGDrid">
							              <p audience="GSAR" class="- topic/p " id="d840e57">
                        <ph class="- topic/ph " props="autonumber">(2)</ph>
                        <i class="+ topic/ph hi-d/i ">End user</i>. This agreement
shall bind the ordering activity as end user but shall not operate
to bind a Government employee or person acting on behalf of the
Government in his or her personal capacity.</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="pKWsOi">
							              <p audience="GSAR" class="- topic/p " id="d840e69">
                        <ph class="- topic/ph " props="autonumber">(3)</ph>
                        <i class="+ topic/ph hi-d/i ">Law and disputes</i>. This agreement
is governed by Federal law.</p>
							              <ol class="- topic/ol " id="d848e78">
								                <li audience="GSAR" class="- topic/li " id="eRcEAu">
									                  <p audience="GSAR" class="- topic/p " id="d840e82">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>Any language purporting to subject
the U.S. Government to the laws of a U.S. state, U.S. territory,
district, or municipality, or foreign nation, except where Federal
law expressly provides for the application of such laws, is hereby
deleted.</p>
								                </li>
								                <li audience="GSAR" class="- topic/li " id="POLPZJ">
									                  <p audience="GSAR" class="- topic/p " id="d840e91">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>Any language requiring dispute
resolution in a specific forum or venue that is different from that
prescribed by applicable Federal law is hereby deleted.</p>
								                </li>
								                <li audience="GSAR" class="- topic/li " id="HYkNmT">
									                  <p audience="GSAR" class="- topic/p " id="d840e100">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>Any language prescribing a different
time period for bringing an action than that prescribed by applicable
Federal law in relation to a dispute is hereby deleted.</p>
								                </li>
							              </ol>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="qnrjrF">
							              <p audience="GSAR" class="- topic/p " id="d840e111">
                        <ph class="- topic/ph " props="autonumber">(4)</ph>
                        <i class="+ topic/ph hi-d/i ">Continued performance</i>. The
supplier or licensor shall not unilaterally revoke, terminate or
suspend any rights granted to the Government except as allowed by
this contract. If the supplier or licensor believes the ordering
activity to be in breach of the agreement, it shall pursue its rights
under the Contract Disputes Act or other applicable Federal statute
while continuing performance as set forth in FAR 52.233-1, Disputes.</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="JMRYhp">
							              <p audience="GSAR" class="- topic/p " id="d840e123">
                        <ph class="- topic/ph " props="autonumber">(5)</ph>
                        <i class="+ topic/ph hi-d/i ">Arbitration; equitable or injunctive
relief</i>. In the event of a claim or dispute arising under or
relating to this agreement, a binding arbitration shall not be used
unless specifically authorized by agency guidance, and equitable
or injunctive relief, including the award of attorney fees, costs
or interest, may be awarded against the U.S. Government only when
explicitly provided by statute (e.g., Prompt Payment Act or Equal
Access to Justice Act).</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="JSuOBt" props="Runin">
							              <p audience="GSAR" class="- topic/p " id="d840e136">
                        <ph class="- topic/ph " props="autonumber">(6)</ph>Updating
terms.</p>
							              <ol class="- topic/ol " id="d848e142">
								                <li audience="GSAR" class="- topic/li " id="LNngxi">
									                  <p audience="GSAR" class="- topic/p " id="d840e146">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>After
award, the contractor may unilaterally revise commercial supplier
agreement terms provided: if they are not material. A material change
is defined as:</p>
									                  <ol class="- topic/ol " id="d848e152">
										                    <li audience="GSAR" class="- topic/li " id="TrkHeg">
											                      <p audience="GSAR" class="- topic/p " id="d840e156">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>Terms that significantly change
Government rights or obligations;</p>
										                    </li>
										                    <li audience="GSAR" class="- topic/li " id="SIQbol">
											                      <p audience="GSAR" class="- topic/p " id="d840e165">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>Terms that increase Government
prices;</p>
										                    </li>
										                    <li audience="GSAR" class="- topic/li " id="NGyfuq">
											                      <p audience="GSAR" class="- topic/p " id="d840e174">
                                    <ph class="- topic/ph " props="autonumber">(C)</ph>Terms that decrease overall level
of service; or</p>
										                    </li>
										                    <li audience="GSAR" class="- topic/li " id="LCiZZI">
											                      <p audience="GSAR" class="- topic/p " id="d840e183">
                                    <ph class="- topic/ph " props="autonumber">(D)</ph>Terms that limit any other Government
right addressed elsewhere in this contract.</p>
										                    </li>
									                  </ol>
								                </li>
								                <li audience="GSAR" class="- topic/li " id="srcotv">
									                  <p audience="GSAR" class="- topic/p " id="d840e194">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>For revisions that will materially
change the terms of the contract, the revised commercial supplier
agreement must be incorporated into the contract using a bilateral
modification.</p>
								                </li>
								                <li audience="GSAR" class="- topic/li " id="cgmYwK">
									                  <p audience="GSAR" class="- topic/p " id="d840e203">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>Any license agreement terms or
conditions unilaterally revised subsequent to award that are inconsistent
with any material term or provision of this contract shall not be
enforceable against the Government, and the Government shall not
be deemed to have consented to them.</p>
								                </li>
							              </ol>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="uEljdr">
							              <p audience="GSAR" class="- topic/p " id="d840e214">
                        <ph class="- topic/ph " props="autonumber">(7)</ph>
                        <i class="+ topic/ph hi-d/i ">No automatic renewals</i>. If
any license or service tied to periodic payment is provided under
this agreement (e.g., annual software maintenance or annual lease
term), such license or service shall not renew automatically upon
expiration of its current term without prior express consent by
an authorized Government representative.</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="NUiaGN">
							              <p audience="GSAR" class="- topic/p " id="d840e226">
                        <ph class="- topic/ph " props="autonumber">(8)</ph>
                        <i class="+ topic/ph hi-d/i ">Indemnification</i>. Any clause
of this agreement requiring the commercial supplier or licensor
to defend or indemnify the end user is hereby amended to provide
that the U.S. Department of Justice has the sole right to represent
the United States in any such action, in accordance with <xref class="- topic/xref "
                              format="html"
                              href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                              scope="external">28 U.S.C. 516</xref>.</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="CEKAzO">
							              <p audience="GSAR" class="- topic/p " id="d840e243">
                        <ph class="- topic/ph " props="autonumber">(9)</ph>
                        <i class="+ topic/ph hi-d/i ">Audits</i>. Any clause of this
agreement permitting the commercial supplier or licensor to audit
the end user's compliance with this agreement is hereby amended
as follows:</p>
							              <ol class="- topic/ol " id="d848e252">
								                <li audience="GSAR" class="- topic/li " id="KARbQz">
									                  <p audience="GSAR" class="- topic/p " id="d840e256">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>Discrepancies
found in an audit may result in a charge by the commercial supplier
or licensor to the ordering activity. Any resulting invoice must
comply with the proper invoicing requirements specified in the underlying Government
contract or order.</p>
								                </li>
								                <li audience="GSAR" class="- topic/li " id="EEIQDE">
									                  <p audience="GSAR" class="- topic/p " id="d840e265">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>This charge, if disputed by the
ordering activity, will be resolved through the Disputes clause
at FAR 52.233-1; no payment obligation shall arise on the part of
the ordering activity until the conclusion of the dispute process.</p>
								                </li>
								                <li audience="GSAR" class="- topic/li " id="ejHGqc">
									                  <p audience="GSAR" class="- topic/p " id="d840e274">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>Any audit requested by the contractor
will be performed at the contractor's expense, without reimbursement by
the Government.</p>
								                </li>
							              </ol>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="BbfXNj">
							              <p audience="GSAR" class="- topic/p " id="d840e285">
                        <ph class="- topic/ph " props="autonumber">(10)</ph>
                        <i class="+ topic/ph hi-d/i ">Taxes or surcharges.</i> Any
taxes or surcharges which the commercial supplier or licensor seeks
to pass along to the Government as end user will be governed by
the terms of the underlying Government contract or order and, in
any event, must be submitted to the Contracting Officer for a determination
of applicability prior to invoicing unless specifically agreed to
otherwise in the Government contract.</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="XeVHaQ">
							              <p audience="GSAR" class="- topic/p " id="d840e297">
                        <ph class="- topic/ph " props="autonumber">(11)</ph>
                        <i class="+ topic/ph hi-d/i ">Non-assignment</i>. This agreement
may not be assigned, nor may any rights or obligations thereunder
be delegated, without the Government's prior approval, except as
expressly permitted under the clause at FAR 52.232-23, Assignment of
Claims.</p>
						            </li>
						            <li audience="GSAR" class="- topic/li " id="acwuTF">
							              <p audience="GSAR" class="- topic/p " id="d840e310">
                        <ph class="- topic/ph " props="autonumber">(12)</ph>
                        <i class="+ topic/ph hi-d/i ">Confidential information</i>.
If this agreement includes a confidentiality clause, such clause
is hereby amended to state that neither the agreement nor the Federal
Supply Schedule contract price list, as applicable, shall be deemed
“confidential information.” Issues regarding release of “unit pricing”
will be resolved consistent with the Freedom of Information Act.
Notwithstanding anything in this agreement to the contrary, the
Government may retain any confidential information as required by
law, regulation or its internal document retention procedures for
legal, regulatory or compliance purposes; provided, however, that
all such retained confidential information will continue to be subject
to the confidentiality obligations of this agreement.</p>
						            </li>
					          </ol>
				        </li>
				        <li audience="GSAR" class="- topic/li " id="yIxjCI">
					          <p audience="GSAR" class="- topic/p " id="d840e324">
                  <ph class="- topic/ph " props="autonumber">(b)</ph>If any language, provision or clause
of this agreement conflicts or is inconsistent with the preceding
paragraph (a), the language, provisions, or clause of paragraph
(a) shall prevail to the extent of such inconsistency.</p>
				        </li>
			      </ol>
		    </conbody>
	  </concept>
</dita>
