LMS Fuel Management Systems

Standard Terms and Conditions

1.      WARRANTY.  Seller warrants that all goods sold hereunder will be first quality, new, and free from defects in material and workmanship and that such goods will perform in ordinary service for a period of at least one year from the date placed in service by the BuyerÕs customer without loss of function or material degradation, ordinary wear and tear excepted.  Seller will pass through any warranties received by it.  Any implied warranty of fitness for a particular purpose is expressly disclaimed.  Seller warrants that any services performed hereunder will be performed in accordance with the SellerÕs highest standards, but in no event lower than the standards customary in the trade.  Seller will repair or replace any goods and perform any services that fail to conform to the above warranties without charge to the Buyer and will incur any reasonable expense in doing so to minimize the inconvenience and expense to Buyer or its customer.

2.      CHANGES.  No modification of this order shall bind Buyer unless contained in a writing signed by Buyer.

3.      INSPECTION.  (a) Seller shall comply with any specifications stated on the face of, or by reference in, or attachment to the order and with any applicable Army, Navy, or Air Force specifications.  Seller shall maintain an inspection system reasonably acceptable to the Buyer.  The Seller shall, upon request, furnish the Buyer with a report of details of materials and workmanship inspections, certified by an authorized representative of the Seller.

       (b)  Buyer and representatives of BuyerÕs customers shall have the right to inspect and test all material and workmanship at all times and places including, when practicable, during manufacture.  If any such inspection or test is made on the premises of the Seller, the Seller shall furnish without additional charge all reasonable facilities and assistance for a safe and convenient inspection or test.

       (c)  The Buyer shall have the right to reject any goods or services that fail to meet SellerÕs warranty, exercisable within (90) days of receipt.  All such rejected items shall be returned to the Seller transportation collect for credit or refund.  Any order is subject to cancellation pro tanto by Buyer to the extent that rejected goods or services cannot be replaced without undue delay or expense to Buyer or its customer.

4.      ASSIGNMENT.  (a)  SellerÕs rights and duties under this order may not be assigned or delegated except as provided below.  Seller shall not enter into a subcontract for the procurement of items covered by this order in completed or subsequently completed form.

       (b)  Seller may assign its interest or a security interest in the proceeds of this order pursuant to a bona fide financing arrangement, provided that Buyer receives timely notice, that only one such assignment is made, that the interest so assigned shall not be subject to re-assignment, and that any such assignment is expressly made subject to setoff any indebtedness or other claim Buyer may have against Seller.

       (c)  In no event shall copies of this order or of any plans, specifications, or other similar documents relating to work under this order, if marked ÒConfidential,Ó be furnished to any assignee of any claim arising under this order or to any other person.

5.      PATENT INDEMNITY.  The Seller agrees to defend, indemnify and save harmless the Buyer and each subsequent purchaser or user of the goods sold to the Buyer under this order, except as to goods manufactured according to a design furnished by the Buyer, for any suit, action, or other claim alleging that the manufacture, use or sale of said goods infringes any United States patent.  The Buyer agrees to give the Seller notice of any such suit or action promptly after notice is received by the Buyer.  The Buyer may, at its own election and expense, at any time supercede the Seller in any defense of a claim in which event the Seller shall thereby be released from its obligation hereunder.

6.      CANCELLATION.  Buyer may cancel this order in whole or in part for convenience only if and to the extent that BuyerÕs customer cancels BuyerÕs order for convenience, and subject to BuyerÕs payment to Seller of an equitable portion of any compensation for such termination received by Buyer from its customer.   

7.      MATERIAL AND EQUIPMENT.  (a)  If provision is made on the face of this order for the furnishing by the Buyer to the Seller of any materials to be used in connection with the performance of this order, such materials will be delivered to the Seller in sufficient time to enable it to meet the delivery dates for the articles to be furnished to the Buyer under this order.  The Buyer shall have no liability to the Seller by reason of any delay in delivery or failure to deliver such materials.

       (b)  Title to any material furnished by the Buyer to the Seller shall remain in the Buyer.  The risk of loss or damage to such materials from any other cause from the time of delivery to the Seller to the time of redelivery to the Buyer shall be borne by the Seller.

       (c)  Upon completion of this order, any of the materials furnished by the Buyer and not consumed in performance of the order, shall be disposed of in accordance with instructions from the Buyer.

       (d)  When the Buyer furnishes any material, in whole or in part, for the manufacture of parts or assemblies, the Seller shall not substitute material from any other source nor shall the Seller alter its physical or chemical properties except in accordance with applicable Buyer specifications or except with the BuyerÕs written approval.

           (e)  All Electrostatic Discharge Sensitive Devices must be properly marked and labeled as such.  Failure to comply will result in rejection of the parts upon receipt. 

8.      COMPLIANCE.  All goods supplied hereunder shall be manufactured substantially in the United States.  Seller shall comply with all applicable laws in the performance of its duties hereunder, including, without limitations, all laws and

regulations relating to employment and specifically to wage levels and payment of wages (including Walsh-Healey requirements if applicable), working conditions, and equal opportunity in employment.  Seller shall maintain no segregated facilities.  Seller shall maintain a Drug-Free Workplace and will post or otherwise provide all applicable notices to its employees.

9.      OTHER RIGHTS AND REMEDIES AND APPLICABLE LAW.  The rights and remedies herein reserved to the Buyer shall be cumulative and additional to any other or further rights and remedies provide in law or equity and all the rights and obligations of the parties shall be governed and construed by the laws of the State of Vermont. 

10.     ORDER OF PRECEDENCE.  In the event of any inconsistencies among documents applicable to this order, the inconsistency will be resolved by giving precedence in the following order: (a) the specifications or drawings; (b) any non-printed agreement signed by both parties applicable to this order; and (c) the printed terms of this Purchase Order, including all clauses incorporated by reference.

11.     GOVERNMENT PROVISIONS.  If this order is placed pursuant to a Government prime contract or subcontract, the following contract clauses as set forth in the Federal Acquisition Regulations (FARs) and the Defense Federal Acquisition Regulations (DFARs) are incorporated herein and are applicable as determined by the type of subcontract, except for those contract clauses from which the Seller is expressly exempt.  The term ÒContractorÓ shall mean ÒSeller,Ó the term ÒContractÓ shall mean Òthis order,Ó and the terms ÒGovernment,Ó ÒContracting Officer,Ó and equivalent phrases shall mean ÒBuyer.Ó  All referenced provisions refer to current revisions in affect as of the date of the respective Government prime contract including any modifications to the prime contract in affect at the time of this purchase order.

FAR Clause

FAR Clauses

 

No. 52 xxx-xx

Title

 

 

 

 

202-1

Definitions

 

203-3

Gratuities

 

203-5

Covenant Against Contingent Fees

 

203-6

Restrictions on Subcontractor Sales to the Government

 

203-7

Anti-Kickback Procedures

 

203-8

Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity

 

203-10

Price or Fee Adjustment for Illegal or Improper Activity

 

203-11

Certification and Disclosure Regarding Payments to Influence Certain Trade Transactions

 

203-12

Limitation on Payments to Influence Certain Federal Transactions

 

204-2

Security Requirements

 

209-6

Protecting the GovernmentÕs Interest when Subcontracting with Contractors Debarred, Suspended, or proposed for debarment

 

211-5

New Material

 

211-15

Defense Priority and Allocation Requirements

 

215-2

Audit and Records— Negotiation

 

215-10

Price Reduction for Defective Cost or Pricing Data

 

215-11

Price Reduction for Defective Cost or Pricing Data-Modifications

 

215-12

Subcontractor Cost or Pricing Data

 

215-13

Subcontractor Cost or Pricing Data-Modifications

 

215-14

Integrity of Unit Prices

 

215-15

Pension Adjustments and Asset Reversions

 

215-18

Reversion or Adjustment of Plans for Postretirement Benefits Other Than Pensions

 

215-19

Notification of Ownership Changes

 

215-20

Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data

 

215-21

Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data

 

219-8

Utilization of Small Business Concerns

 

219-9

Small Business Subcontracting Plan

 

222-4

Contract Work Hours and Safety Standards Act

 

222-20

Walsh-Healy Public Contracts

 

222-21

Non-Segregated Facilities

 

222-26

Equal Opportunity

 

222-35

Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era

 

222-36

Affirmative Action for Workers with disabilities

 

222-43

Fair Labor Standards Act and Service Contract Act- Price Adjustment (Multiply Year and Option Contracts)

 

223-3

Hazardous Material Identification and Material Safety Data

 

223-6

Drug-Free Workplace

 

223-11

Ozone Depleting Substances

 

223-14

Toxic Chemical Release Reporting

 

223-37

Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and other Eligible Veterans

 

225-10

Duty-Free Entry

 

227-1

Authorization & Consent

 

227-2

Notice and Assistance Regarding Patent and Copyright Infringement

 

227-10

Filing of Patent Applications- Classified Subject Matter

 

FAR 230-2

Cost Accounting Standards

 

FAR 230-3

Disclosure and Consistency of Accounting Practices

 

FAR 230-4

Consistency in Cost Accounting Practices

 

232-1

Payments

 

232-17

Interest

 

233-1

Disputes

 

242-15

Stop Work Order

 

246-2

Inspection of Supplies

 

246-16

Responsibility for Supplies

 

246-23

Limitation of Liability

 

246-24

Limitation of Liability- High Value Items

 

247-29

FOB Origin

 

248-1

Value Engineering

 

249-2

Termination for Convenience of the Government (Fixed-Price)

 

249-6

Termination (Cost- Reimbursement)

 

DoD Clause

 

 

No. 252 xxx-xxxx

Title

 

 

 

 

203-570

Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies

 

203-7001

Prohibition on Persons Convicted of Fraud or Other Defense-Contract Related Felonies

 

204-7000

Disclosure of Information

 

215-7000

Pricing Adjustment

 

225

Buy American Act

 

226-7001

Utilization of Indian Organizations and Indian-Owned Economic Enterprises

227-7013

Rights in Technical Data-Noncommercial Items

227-7014

Rights in Noncommercial Computer Software and Noncommercial Computer Software Documentation

227-7015

Technical Data-Commercial Items

227-7016

Rights to Bid or Proposal Information

227-7017

Identification and Assertion of Use, Release, or Disclosure Restrictions

227-7019

Validation of Asserted Restrictions-Computer Software

227-7026

Deferred Delivery Technical Data or Computer Software

227-7027

Deferred Ordering of Technical Data or Computer Software

227-7030

Technical Data-Withholding of Payment

227-7036

Declaration of Technical Data Conformity

227-7037

Validation of Restrictive Markings on Technical Data

244-7000

Subcontracts for Commercial Items and Commercial Components

244-9000

Subcontracts for Commercial Items

 

245-7001

Reports of Government Property

246-7001

Warranty of Data

252-225

Preference for Domestic Specialty Metals

 

Fuel Management Systems