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<!DOCTYPE dita
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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
      ditaarch:DITAArchVersion="1.2">
   <concept id="YMIBGEPW"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title xtrc="GSAR" class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">552.212-4</ph> Contract
Terms and Conditions—Commercial Items (FAR DEVIATION).</title>
      <conbody class="- topic/body  concept/conbody ">
         <p audience="GSAR" class="- topic/p ">As prescribed in <xref href="GSAM-FWTTCYTU.dita#FWTTCYTU/i2127121"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">512.301</xref>(e), replace subparagraph
(g)(2), paragraph (s), and paragraph (u) of FAR clause 52.212-4.
Also, add paragraph (w) to FAR clause 52.212-4:</p>
         <p audience="GSAR" outputclass="Ctr_SmCaps" class="- topic/p ">Contract Terms and
Conditions-Commercial Items. (FAR DEVIATION) (Feb 2018)</p>
         <p audience="GSAR" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">Alternate II</i> (FAR Deviation) (Nov 2009).
When a commercial item contract is contemplated and the contract
will include the clause at FAR 52.212-4, insert this Alternate II
instead of subparagraph (g)(2) of the FAR clause.</p>
         <p audience="GSAR" class="- topic/p ">(g)(2) The due date for making invoice payments
by the designated payment office is the later of the following two
events:</p>
         <p id="d791e25"
            audience="GSAR"
            outputclass="List3"
            class="- topic/p ">(i) The
10th day after the designated billing office receives a proper invoice
from the Contractor. If the designated billing office fails to annotate
the invoice with the date of receipt at the time of receipt, the
invoice payment due date shall be the 10th day after the date of
the Contractor’s invoice; provided the Contractor submitted a proper
invoice and no disagreement exists over quantity, quality, or Contractor
compliance with contract requirements.</p>
         <p id="d791e34"
            audience="GSAR"
            outputclass="List3"
            class="- topic/p ">(ii) The
10th day after Government acceptance of supplies delivered or services
performed by the Contractor.</p>
         <p audience="GSAR" class="- topic/p ">(s) Order of precedence. Any inconsistencies
in this solicitation or contract shall be resolved by giving precedence
in the following order:</p>
         <ol class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <ol id="d799e42" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e47" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph> The
schedule of supplies/services.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e56" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph> The Assignments, Disputes, Payments,
Invoice, Other Compliances, Compliance with Laws Unique to Government
Contracts, Unauthorized Obligations, and Commercial Supplier Agreements
- Unenforceable Clauses paragraphs of this clause.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e65" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph> The clause at 52.212-5.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e74" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph> Addenda to this solicitation or
contract, including any commercial supplier agreements as amended
by the Commercial Supplier Agreements -Unenforceable Clauses provision.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e83" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(5)</ph> Solicitation provisions if this
is a solicitation.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e93" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(6)</ph> Other paragraphs of this clause.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e102" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(7)</ph> The Standard Form 1449.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e111" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(8)</ph> Other documents, exhibits, and
attachments.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e120" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(9)</ph> The specification.</p>
                  </li>
               </ol>
            </li>
         </ol>
         <p audience="GSAR" class="- topic/p ">(u) Unauthorized Obligations.</p>
         <ol class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <ol id="d799e130" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e135" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph> Except
as stated in paragraph (u)(2) of this clause, when any supply or
service acquired under this contract is subject to any commercial
supplier agreement (as defined in <xref href="GSAM-LWSCCJYG.dita#LWSCCJYG"
                              outputclass="fm:ParaNumOnly"
                              class="- topic/xref ">502.101</xref>)
that includes any language, provision, or clause requiring the Government
to pay any future fees, penalties, interest, legal costs or to indemnify
the Contractor or any person or entity for damages, costs, fees,
or any other loss or liability that would create an Anti-Deficiency
Act violation (<xref href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                              format="html"
                              scope="external"
                              class="- topic/xref ">31 U.S.C. 1341</xref>), the
following shall govern:</p>
                     <ol id="d799e147" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e152" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph> Any
such language, provision, or clause is unenforceable against the
Government.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e161" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph> Neither the Government nor any
Government authorized end user shall be deemed to have agreed to
such clause by virtue of it appearing in the commercial supplier
agreement. If the commercial supplier agreement is invoked through
an “I agree” click box or other comparable mechanism (e.g., “click-wrap”
or “browse-wrap” agreements), execution does not bind the Government
or any Government authorized end user to such clause.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e170" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph> Any such language, provision,
or clause is deemed to be stricken from the commercial supplier
agreement.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e182" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph> Paragraph (u)(1) of this clause
does not apply to indemnification or any other payment by the Government
that is expressly authorized by statute and specifically authorized
under applicable agency regulations and procedures.</p>
                  </li>
               </ol>
            </li>
         </ol>
         <p audience="GSAR" class="- topic/p ">(w)  <i class="+ topic/ph hi-d/i ">Commercial supplier agreements
unenforceable clauses.</i>When any supply or service acquired under
this contract is subject to a commercial supplier agreement (as
defined in <xref href="GSAM-LWSCCJYG.dita#LWSCCJYG"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">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 ">
            <li audience="GSAR" class="- topic/li ">
               <ol id="d799e199" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d791e204" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</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 id="d799e208" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e213" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>   <i class="+ topic/ph hi-d/i ">Applicability</i>.
This agreement is a 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 12).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e225" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</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 ">
                           <p id="d791e237" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph>   <i class="+ topic/ph hi-d/i ">Law and disputes</i>.
This agreement is governed by Federal law.</p>
                           <ol id="d799e244" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d791e249" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</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 a 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 ">
                                 <p id="d791e258" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</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 ">
                                 <p id="d791e267" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(C)</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 ">
                           <p id="d791e279" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iv)</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 subparagraph (d) (Disputes).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e291" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(v)</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 ">
                           <p id="d791e304" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(vi)</ph> Updating terms.</p>
                           <ol id="d799e309" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d791e314" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</ph> After award,
the contractor may unilaterally revise commercial supplier agreement
terms: if they are not material. A material change is defined as:</p>
                                 <ol id="d799e319" class="- topic/ol ">
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d791e324" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(1)</ph> Terms that
change Government rights or obligations;</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d791e333" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(2)</ph> Terms that increase Government
prices;</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d791e342" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(3)</ph> Terms that decrease overall level
of service; or</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d791e351" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(4)</ph> Terms that limit any other Government
right addressed elsewhere in this contract.</p>
                                    </li>
                                 </ol>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d791e362" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</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 ">
                                 <p id="d791e371" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(C)</ph> Any agreement license 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 ">
                           <p id="d791e382" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(vii)</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 ">
                           <p id="d791e394" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(viii)</ph> Indemnification. 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 href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                    format="html"
                                    scope="external"
                                    class="- topic/xref ">28 U.S.C. 516</xref>.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e408" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ix)</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 id="d799e416" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d791e421" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</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 ">
                                 <p id="d791e430" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</ph> This charge, if disputed by the
ordering activity, will be resolved in accordance with subparagraph
(d) (Disputes) through the Disputes clause at <xref href="#YMIBGEPW"
                                          base="YMIBGEPW"
                                          outputclass="fm:ParaNumOnly"
                                          class="- topic/xref ">552.212-4</xref>(d);
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 ">
                                 <p id="d791e439" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(C)</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 ">
                           <p id="d791e450" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(x)</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 ">
                           <p id="d791e462" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(xi)</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 subparagraph (b) of this clause.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d791e475" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(xii)</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 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 ">
                     <p id="d791e490" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  If any language, provision,
or clause of this agreement conflicts or is inconsistent with the
preceding paragraph (w)(1), the language, provisions, or clause
of paragraph (w)(1) shall prevail to the extent of such inconsistency.</p>
                  </li>
               </ol>
            </li>
         </ol>
         <p audience="GSAR" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
