34.104
Contract clause
FAR 34.104 mandates the inclusion of clause 52.234-1 in all contracts for major systems and items of supply to ensure compliance with Title III of the Defense Production Act.
Overview
FAR 34.104 requires contracting officers to include the clause at 52.234-1, "Industrial Resources Developed under Title III, Defense Production Act," in all contracts for major systems and items of supply. This clause ensures that contractors are aware of and comply with requirements related to the use of industrial resources developed under Title III of the Defense Production Act, which supports national defense needs by expanding or maintaining critical production capabilities.
Key Rules
- Mandatory Clause Inclusion
- The clause at 52.234-1 must be inserted in all contracts for major systems and items of supply.
- Applicability to Major Systems and Items of Supply
- The requirement applies specifically to contracts involving major systems or significant supply items, as defined elsewhere in the FAR.
Responsibilities
- Contracting Officers: Must ensure the clause at 52.234-1 is included in all applicable contracts.
- Contractors: Must comply with the requirements set forth in the clause regarding the use of industrial resources developed under Title III.
- Agencies: Should oversee compliance with the clause and ensure proper implementation in relevant contracts.
Practical Implications
- This section ensures that government contracts for major systems and supply items support the broader goals of the Defense Production Act, particularly in maintaining and expanding critical industrial capabilities for national defense.
- Contractors must be prepared to comply with any special requirements or reporting obligations related to Title III resources.
- Failure to include the clause or comply with its requirements could result in contract noncompliance or jeopardize national defense objectives.