BAE Systems Inc. USGOVGOODS — General Clauses for Subcontracts/Purchase Orders for Goods under a U.S. Government Prime Contract

Its 10 clauses can ask you for 23 things.

1. A program you have to be running4e.g. A system of internal controls that manages the Government property in your shop FAR 52.245-1(b)(1)

   You are either running it or you are not, and what the prime asks for is the date it started.

   • Reasonable procedures in place and in use to prevent and detect kickbacks in your own operations and in your direct business relationships

     FAR 52.203-7(c)(1)

   • Records and controls adequate to administer the clause — paragraph (h) removes entitlement to payment for any period they are found inadequate

     FAR 52.232-32(h)

   • A system of internal controls that manages the Government property in your shop — control, use, preservation, protection, repair and maintenance

     FAR 52.245-1(b)(1)

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   • A documented counterfeit electronic part detection and avoidance program covering the twelve areas the clause lists — training, inspection and testing, traceability, quarantine, and reporting among them

     DFARS 252.246-7007(c)
2. Something you write12e.g. A written report to the agency Inspector General FAR 52.203-7(c)(2)

   Days to weeks, and nobody outside your company has to agree to it.

   • A written report to the agency Inspector General, or to the Attorney General where the agency has none

     Owed promptly on reasonable grounds to believe a kickback described in (b) may have occurred

     FAR 52.203-7(c)(2)

   • The evidence substantiating any event, which the payer may call for at any time

     FAR 52.232-32(c)(1)

   • Property records for everything accountable to the order, carrying the data elements the clause names

     FAR 52.245-1(f)(1)(iii)

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   • Physical inventories performed, recorded and disclosed on a stated cycle

     FAR 52.245-1(f)(1)(iv)

   • A report on every loss of Government property, recognized, investigated and disclosed

     FAR 52.245-1(f)(1)(vii)

   • Complete termination inventory schedules, submitted no later than 120 days from the effective date of the termination

     FAR 52.249-2(c)

   • The final termination settlement proposal, submitted no later than one year from the effective date — costs incurred on the terminated work, a profit allowance on what was done, and the settlement costs themselves

     FAR 52.249-2(e)

   • Complete termination inventory schedules within 120 days of the effective date

     FAR 52.249-6(d)

   • The final termination settlement proposal within one year — on cost-type work the incurred costs come back either way, and the fee is what the settlement turns on

     FAR 52.249-6(f)

   • A written disclosure with the technical detail, the contract it was made under, and any publication, sale or public use named

     Owed when an inventor reports a subject invention in writing — two months from that report, or six months from when you first became aware of it, whichever is earlier

     252.227-7038(c)(1)

   • Written agreements binding your technical employees to report promptly what they invent

     Owed when you employ anyone other than clerical and nontechnical staff on the work — without it the disclosure deadline cannot be met

     252.227-7038(e)(2)(i)

   • Utilization reports — status of development, first commercial sale or use, gross royalties received

     Owed when the agency requests them, no more often than annually

     252.227-7038(f)(1)
3. Something you fill in and send back5e.g. A report FAR 52.204-25(d)

   Hours, once you know which one is missing.

   • A report — contract number, supplier, brand, model number, item description and any mitigation already under way — with further detail and prevention steps within 10 business days after it

     Owed when you identify covered telecommunications equipment or services in what you supply or use — the first report is due within one business day of that

     FAR 52.204-25(d)

   • A report — contract number, product or service name, the covered article or the source, the vendor, brand, model number and item description — with mitigation detail and prevention steps within 10 business days after it

     Owed when you identify a covered article or a prohibited source in what you furnish or will furnish — the first report is due within three business days of that

     FAR 52.204-30(c)(3)

   • A request for payment listing every completed event in one itemized submission, no more often than monthly

     Owed only where the buyer elects to finance you on completed events rather than on cost or delivery

     FAR 52.232-32(b)

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   • A certification signed by an official authorized to bind the company — that the request is true and correct and prepared from your books and records, that payments to your own suppliers and subcontractors are current or will be when due, and that the property carries no undisclosed encumbrance

     FAR 52.232-32(m)

   • The instruments that confirm the Government's rights, or assign title, executed and delivered to the agency

     Owed when you elect to keep ownership of a subject invention, or the agency requests title under (d)(1)

     252.227-7038(e)(1)
4. Nothing to send now2They are terms that decide what money moves later.