Defending Australia and Its National Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Standard Purchase Order Terms & Conditions for US and Canadian Suppliers

1. DEFINITIONS: In these Terms and Conditions "CONTRACT" means the Purchase Order, these Terms and Conditions, any Annexes expressly referred to in the Purchase Order or Terms and Conditions and any other documents expressly incorporated by reference in the Purchase Order or Terms and Conditions, but excludes the Request for Quotation, if any. "PURCHASER" means the Commonwealth of Australia "VENDOR" means the Offeror named on the face of the Purchase Order. "SUPPLIES" means any goods being purchased under the Contract. "ACCEPTANCE" takes place when Purchaser or his representative has performed a final inspection of Supplies or Services and has executed an appropriate 'Acceptance' form. "DELIVERY" unless otherwise sanctioned in the Purchase Order, takes place when Supplies are handed over to a carrier at the Vendor's facility or when services are performed.

2. PRICES, INVOICES AND DOCUMENTS: 2.1 Prices. All prices under the Contract shall be F.O.B. point of delivery. 2.2 Payment. Vendor shall submit all of the following documents to: The Defence Finance Manager, 5th floor, Embassy of Australia, 1601 Massachusetts Avenue, N.W. Washington D.C. 20036 - Two (2) regular invoices - one (1) Certificate of inspection, conformance or compliance, if indicated in the "Inspection Quality Control" Box on the face of this order - one (1) Carrier(s) or postal receipt as evidence of delivery. Invoices shall show Purchase Order number, shipping marks, and gross weights. Certificates of inspection, conformance or compliance may be endorsed on invoices. Unless otherwise specified in the Purchase Order payment shall be made after delivery of the Supplies named in the Contract upon receipt of the complete documents specified above and subject to the terms of the Contract. Payment may be made on partial deliveries accepted by Purchaser, when in Purchaser's judgement, the amount due on such delivery so warrants. In no event shall payment in part or in whole prejudice any rights of Purchaser, including its rights to inspect and reject Supplies and Services or to invoke warranties.

3.DISCOUNTS: In connection with any discount offered, time for payment by Purchaser shall be computed from the later of these dates (1) the date of delivery, or (2) the date on which documents referred to in Clause 2.2 meeting all requirements of the contract are received at the office named in the Purchase Order. For the purpose of earning the discount, Purchaser is deemed to have made payment on the day its check is mailed to the Vendor.

4. NEW GOODS: PACKING AND SHIPMENT: Unless otherwise stated in the Contract, all Supplies shall be new goods. Unless otherwise stated in the Purchase Order, the preservation, packaging, packing and marking and the preparation of any method of shipment of Supplies shall conform with the requirements of Annex B to this Contract.

5. INSPECTION: Unless otherwise stated in the Contract, Supplies to be provided by Vendor shall be subject to inspection both before delivery and upon arrival in their place of use or storage in Australia, by Purchaser or its representative at Purchaser's option. Unless otherwise stated in the Contract only inspection in Australia shall constitute final inspection, which must precede Acceptance. Except as otherwise stated in the Contract, Vendor shall meet the standards and requirements and be bound by the provisions of the non-Alternate clause set out in Federal Acquisition Regulation 52-246-2 in effect on the date of this Contract ("INSPECTION OF SUPPLIES-FIXED PRICE (AUG 1996)"), and Purchaser shall have such rights as the U.S. Government has under that clause.

6. DEFAULT: 6.1 If Vendor (1) fails to deliver the supplies or perform the service within the time specified herein or any approved extension thereof; (2) fails to comply with any other provision of the Contract: (3) so fails to make satisfactory progress as to endanger performance of the Contract in accordance with its terms: or (4) becomes bankrupt, makes an assignment for the benefit of creditors, goes into liquidation whether compulsory or voluntary or has appointed a receiver or manager of its property or any part thereof. Purchaser may, by written notice or default to vendor terminate the whole or any part of this contract. Purchaser's right to terminate this Contract under (2), (3) or (4) above may be exercised if Vendor does not cure such failure within 10 days (or more if authorized in writing by Purchaser) after receipt of the notice from Purchaser specifying the failure. Vendor shall notify Purchaser as soon as Vendor has reason to believe that an event (including an event relating to a subcontractor) constituting a default has taken place or is about to take place. 6.2 In the event of such termination, Purchaser may without prejudice to any other rights arising herein or arising otherwise under law procure supplies and services similar to those so terminated, and Vendor shall be liable to Purchaser for any excess costs of such similar supplies and services. In the event of such termination Purchaser shall have no obligation to pay for the work done by Vendor, except to the extent payment is expressly required under this Contract for Supplies and services delivered to and accepted by Purchaser. If Purchaser terminates part of this Contract pursuant to this clause, Vendor shall continue the performance of this Contract to the extent not terminated by the Purchaser 6.3. If this Contract is terminated as provided in Clause 6.1, Purchaser, in addition to its other rights, may require Vendor to deliver, as and to the extent directed by Purchaser (1) any completed Supplies and (2) such partially completed Supplies and materials, parts, tools, dies, jigs, fixtures, plans, drawings, information and rights (hereinafter called 'manufacturing materials') as has produced or acquired for the performance of such part of this Contract as has been terminated. Payment for completed Supplies shall be at the contract price. Payment for manufacturing materials shall be a reasonable price based on the value of such materials in relation to the price of finished Supplies. 6.4. If after notice of termination of this Contract under the provision of this clause, it is determined for any reason that was not in default, the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to the 'Termination for Convenience' clause of the Contract.

7. TERMINATION FOR CONVENIENCE: Purchaser shall have such rights to terminate for its convenience all or any part of this Contract as the U.S. Government has under the non-Alternate clause set out in Federal Acquisition Regulation 52.249-2 ("TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED PRICE) (SEP 1996)"). In the event of such termination, the rights and obligations of Purchaser and Vendor shall be as set forth in that clause.

8. WARRANTY AS TO SUPPLIES AND SERVICES: Vendor warrants that all supplies and services shall be free from defects in materials and workmanship and shall conform to the specification, drawings and samples, if any, and to all other requirements of this Contract. In addition, without derogation from the foregoing, standard commercial supplies and services shall be covered by the most favourable warranties that Vendor gives to any customer for such supplies or services. Purchaser shall give written notice to Vendor of any breach of the warranties in this Clause 8 within 12 months (24 months in the case of latent defects) of delivery of the non-conforming supplies or services. Within a reasonable time after such notice, Purchaser may either (1) by written notice require Vendor promptly and at Vendor's expense, to correct or replace any supplies, services, or parts thereof (including preservation, packaging, packing and marking) that do not conform to the requirements of this Contract and pay all shipping costs incident thereto, or (2) retain such supplies or services or parts, whereupon the Contract price thereon shall be reduced be an amount equitable under the circumstances.

9. CORRECTED OR REPLACEMENT SUPPLIES: Any supplies, services or parts thereof corrected or furnished in replacement pursuant to Clause 8 shall also be subject to the provisions of Clause 8 to the same extent as supplies or services initially delivered. The warranties with respect to such supplies, services or parts shall run from the date of delivery of such corrected or replacement supplies or services, and Purchaser shall give written notice of any breach of warranties within 2 months (4 months in case of latent defects) of delivery of the non-conforming supplies or services.

10. PATENT AND OTHER RIGHTS: With respect to supplies manufactured by Vendor. Vendor shall indemnify and hold harmless Purchaser and its officers, agents and employees against any damage or liability including costs and attorney's fees, for infringement or alleged infringement or any patent copyright, trademark, trade secret or intellectual property right and, if so requested by Purchaser shall defend at Vendor's expense any suit or action based in whole or in part on such infringement or alleged infringement. This indemnity shall not apply unless Purchaser informs Vendor as soon as practicable, of the suit or action alleging such infringement and Vendor shall have been given such opportunity as is afforded by applicable laws, rules or regulations to participate in its defense. This indemnity shall not apply to (1) an infringement resulting from compliance with specific written instructions of Purchaser directing a change in the materials or equipment to be used, or directing a manner of performance of the Contract not normally used by Vendor; (2) an infringement resulting from addition to or change in supplies or components furnished that was made subsequent to delivery or performance or (3) a claimed infringement that is unreasonably settled without the consent of Vendor, unless required by final decree of a court of competent jurisdiction.

11. CONTINGENT FEES: Except as expressly disclosed by Vendor in its offer no person or selling agency has been employed or retained to solicit to secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, other than authorized bona fide employees of the Vendor. For breach of this warranty Purchaser shall have the right to annul the Contract without any liability on the part of the Purchaser to Vendor, or in its discretion to deduct from the Contract price, or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee.

12. SURVIVAL OF WARRANTIES AND RIGHTS: All the warranties in Clauses 8 through 12 as well as any other express warranties by Vendor shall survive delivery and acceptance of the supplies or services whether any defect be latent or patent. The above warranties shall not be in derogation of any other warranties or rights arising under law.

13. TAXES: Vendor shall bear the cost of all taxes whether local, state, federal or other (except Australian Federal Sales Tax, Australian Excise Tax and Australian Customs Duty) that may be imposed in connection with performance of this Contract.

14. RISK OF LOSS OR DAMAGE: INSURANCE: Unless otherwise specified, Vendor shall bear and be liable for all risk of loss or damage whatsoever (including but not limited to risk of loss of, or damage to supplies or parts thereof) until Vendor delivers the supplies as specified in the Contract. Vendor shall buy no insurance for Purchaser's account.

15. EXPORT LICENSES: Unless otherwise determined at the time of order, Purchaser shall seek to obtain all necessary export licenses and Purchaser shall lodge all licenses with US Customs at the appropriate port of exit. If Purchaser is denied any such license, or licensing laws or regulations change, so as to be unacceptable to Purchaser, Purchaser may terminate this Contract and such action shall be deemed a termination pursuant to the "Termination of Convenience" Clause of this Contract.

16. GOVERNING LAW: This Purchase Order shall be governed by the Uniform Commercial Code as adopted in the State of New York as effective and in force on the date of this Purchase Order.

17. Reserved:

18. DISPUTES: Any dispute, controversy or claim arising out of or relating to the Contract, or the breach, termination or invalidity thereof, shall be resolved through arbitration before on arbitrator in the District of Columbia or other location chosen by the arbitrators, under the rules of the United Nations Commission on International Trade Law (UNCITRAL) as at present in force. If the parties cannot agree upon the choice of arbitrator, the arbitrator shall be appointed by the Executive Secretary of the International Center for Settlement of Investment Disputes, or, if he or she declines or fails within reasonable time to act, by an "appointing authority" designated pursuant to the UNCITRAL rules.

19. VARIATIONS OF QUANTITY: No variations in quantity of any item called for by this Contract will be accepted unless such variation has been caused by conditions of loading, shipping, or packing, or allowance in manufacturing processes, and then only to the extent, if any, specifically authorized by Purchaser.

20. CHANGES: Purchaser may at any time, by a written order, make changes within the general scope of the Contract, in any one or more of the following (1) drawings, designs or specifications of Supplies (2) method of shipment or packing of Supplies (3) description of services or time of their performance and (4) place of delivery of Supplies or performance of services, and (5) variation in quantity, if any of the changes cause an increase or decrease in the cost of or the time required for the performance of any part of the work under Contract, whether changed or not changed by any such order, an equitable adjustment shall be made in the Contract price or delivery schedule, or both, and the Contract shall be modified in writing accordingly. Any claim by the Vendor for adjustment under this clause must be asserted within 30 days from the date of receipt by Vendor of the notification of change; provided, however, that Purchaser if he decides that the facts justify such action may receive and act upon any such claim asserted at any time prior to final payment under the Contract. Where the cost of property made obsolete or excess as a result of a change is included in Vendor's claim for adjustment. Purchaser shall have the right to prescribe the manner of disposition of such property. Failing to agree to any adjustment shall be a dispute within the meaning of a clause of this Contract entitled 'Disputes'. However nothing in this clause shall excuse Vendor from proceeding with the Contract as changed.

21. PROPRIETARY INFORMATION: All technical data or information communicated by Purchaser to Vendor in connection with this Contract is considered commercial-in-confidence and proprietary to Purchaser and the data and information shall be used only in performance of the Contract and shall not be disclosed to third parties.

22. PRECEDENCE: In the event of any inconsistency, the following documents shall take precedence in the following order (1) the Purchase Order (2) these Terms and Conditions (3) Annex B to the Contract; and (4) other documents incorporated in the Contract by reference.

23. ASBESTOS: Products containing asbestos shall be completely and individually enclosed in packaging (EG) plastic and/or cardboard of adequate strength to ensure that no escape of fibres can occur during handling and stowage of items. Each package shall have a highly visible permanent warning label affixed stating ""WARNING - CONTAINS ASBESTOS" or similar.

 

Disclaimer for US and Canadian Suppliers

 

Disclaimer of the Councellor Defence Materiel (CONDMAT), of the Embassy of Australia, Washington D.C., acting for and on behalf of the Government of Australia

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