Research Administration Office

University of California

Memo

No. 3-74

The University of California

Office of the Vice President-Business Affairs

September 20, 1973

I-1. Bureau of Mines (Department of Interior) Contract Clause CHANGES Unacceptable

Attached for your information is a copy of a letter of July 3, 1973, with enclosure, from Columbia University to Mr. Howard Wile of NACUBO regarding Columbia's attempted negotiation of contract terms and conditions with the Bureau of Mines. Columbia refused the contract because the Bureau of Mines would not remove a clause which gave the agency an unlimited right, unilaterally, to make changes in the work.

In general, a "Changes" clause is appropriate in a construction contract, for example, but not in a contract for research, training, or public service. The attached CHANGES clause is an example of the kind of CHANGES clause which is unacceptable to the University, because it gives the contracting officer unlimited authority and thus does not provide for the mutual agreement of the parties to the changes.

Refer: P. Klenz 2-2592

Index: Terms & Conditions


July 3, 1973

Mr. Howard Wile

OFFICE OF PROJECTS AND GRANTS

Box 20 Low Memorial Library

Columbia University in the City of New York

New York, N.Y. 10027

Dear Mr. Wile:

This is to inform you about Columbia's experience with the Bureau of Mines, Department of the Interior, Cost Reimbursement contract format.

We objected to three articles in the Bureau of Mines proposed contract numbered S 0133082 which were all in Appendices 'A' and 'B' of the United States Department of the Interior, Bureau of Mines attachment titled "Cost Reimbursement Research and Development Contracts with Educational Institutions." The three articles were: Clause No. 2 - CHANGES, Clause No. 20 - DATA in Appendix 'A', and Appendix 'B' - PATENTS AND INVENTIONS ARTICLE. We managed to get our publication restriction and background patent problems resolved but we failed to get the Bureau to correct the CHANGES clause. As a result, we were unable to accept the $17,500 contract and it is lost for good now. I enclose a copy of this clause for your use.

Sincerely yours,

James P. Lewis- --

Assistant Director

Att. 1 to C& G Memo 3-74