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(Revised September 14, 1999)



 237.7200 Scope.
 237.7201 Educational service agreement.
 237.7202 Limitations.
 237.7203 Duration.
 237.7204 Format and clauses for educational service agreements.

237.7200  Scope.


      (a)  This subpart prescribes acquisition procedures for educational services from schools, colleges, universities, or other educational institutions.  This subpart does not include tuition assistance agreements, i.e., payment by the Government of partial tuition under the off-duty educational program.


      (b)  As used in the subpart—


              (1)  “Facilities” does not include the institution's dining rooms or dormitories; and


              (2)  “Fees” does not include charges for meals or lodging.


237.7201  Educational service agreement.


      (a)  An educational service agreement is not a contract, but is an ordering agreement under which the Government may order educational services.


      (b)  Educational service agreements provide for ordering educational services when—


              (1)  The Government pays normal tuition and fees for educational services provided to a student by the institution under its normal schedule of tuition and fees applicable to all students generally; and


              (2)  Enrollment is at the institution under the institution's normal rules and in courses and curricula which the institution offers to all students meeting admission requirements.


237.7202  Limitations.


      (a)  Make no agreement under this subpart which will result in payment of Government funds for tuition or other expenses for training in any legal profession, except in connection with the detailing of commissioned officers to law schools under 10 U.S.C. 2004.


      (b)  Educational service agreements are not used to provide special courses or special fees for Government students.


237.7203  Duration.


      (a)  Educational service agreements are for an indefinite duration and remain in effect until terminated.


      (b)  The issuing activity must establish procedures to review each educational service agreement at least once each year.  Review dates should consider the institution's academic calendar and occur at least 30 days before the beginning of a term.  The purpose of the review is to incorporate changes to reflect requirements of any statute, Executive Order, FAR, or DFARS.


      (c)  If the contracting officer and the institution do not agree on required changes, terminate the agreement.


237.7204  Format and clauses for educational service agreements.

Educational service agreements under this subpart shall be in the following format.  Add to the schedule any other provisions necessary to describe the requirements, if they are consistent with the following provisions and the policy of acquiring educational services in the form of standard course offerings at the prevailing rates of the institution.




Agreement No. ______________


      1.  This agreement entered into on the __________ day of ________________ 19__, is between the Government, represented by the Contracting Officer, and the Contractor, _________(name of institution)________________, an educational institution located in _________(city)_________, ____(state)__________.


      2.  This agreement is for educational services to be provided by the Contractor to Government personnel at the Contractor's institution.  The Contractor shall provide instruction with standard offerings of courses available to the public.


      3.  The Government shall pay for services under the Contractor's normal schedule of tuition and fees applicable to the public and in effect at the time the services are performed.


      4.  The Government will review this agreement annually before the anniversary of its effective date for the purpose of incorporating changes required by statutes, executive orders, the Federal Acquisition Regulation, or the Defense Federal Acquisition Regulation Supplement.  Changes required to be made by modification to this agreement or by issuance of a superseding agreement.  If mutual agreement on the changes cannot be reached, the Government will terminate this agreement.


      5.  The parties may amend this agreement only by mutual consent.


      6.  This agreement shall start on the date in paragraph 1 and shall continue until terminated.


      7.  The estimated annual cost of this agreement is $_________.  This estimate is for administrative purposes only and does not impose any obligation on the Government to request any services or make any payment.


      8.  Advance payments are authorized by 10 U.S.C. 2396(a)(3).


      9.  Submit invoices to:  ____________(name and address of activity)______________.




      1.  Ordering procedures and services to be provided.


              (a)  The Contractor shall promptly deliver to the Contracting Officer one copy of each catalog applicable to this agreement, and one copy of any subsequent revision.


              (b)  The Government will request educational services under this agreement by a (insert type of request, such as, delivery order, official Government order, or other written communication).  The (insert type of request, such as, delivery order, official Government order, or other written communication) will contain the number of this agreement and will designate as students at the Contractor's institution one or more Government-selected persons who have already been accepted for admission under the Contractor's usual admission standards.


              (c)  All students under this agreement shall register in the same manner, be subject to the same academic regulations, and have the same privileges, including the use of all facilities and equipment as any other students enrolled in the institution.


              (d)  Upon enrolling each student under this agreement, the Contractor shall, where the resident or nonresident status involves a difference in tuition or fees—


                    (i)  Determine the resident or nonresident status of the student;


                    (ii)  Notify the student and the Contracting Officer of the determination.  If there is an appeal of the determination;


                    (iii)  If there is an appeal of the determination, process the appeal under the Contractor's standard procedures;


                    (iv)  Notify the student and Contracting Officer of the result; and


                    (v)  Make the determination a part of the student's permanent record.


              (e)  The Contractor shall not furnish any instruction or other services to any student under this agreement before the effective date of a request for services in the form specified in paragraph (b) of this schedule.


      2.  Change in curriculum.  The Contracting Officer may vary the curriculum for any student enrolled under this agreement but shall not require or make any change in any course without the Contractor's consent.


      3.  Payment.


              (a)  The Government shall pay the Contractor the normal tuition and fees which the Contractor charges any students pursuing the same or similar curricula, except for any tuition and fees which this agreement excludes.  The Contractor may change any tuition and fees, provided—


                    (1)  The Contractor publishes the revisions in a catalog or otherwise publicly announces the revisions;


                    (2)  Applies the revisions uniformly to all students studying the same or similar curricula;


                    (3)  Provides the Contracting Officer notice of changes before their effective date.


              (b)  The Contractor shall not establish any tuition or fees which apply solely to students under this agreement.


              (c)  If the Contractor regularly charges higher tuition and fees for nonresident students, the Contractor may charge the Government the normal nonresident tuition and fees for students under this agreement who are nonresidents.  The Government shall not claim resident tuition and fees for any student solely on the basis of the student residing in the State as a consequence of enrollment under this agreement.


              (d)  The Contractor shall charge the Government only the tuition and fees which relate directly to enrollment as a student.  Tuition and fees may include—


                    (i)  Penalty fees for late registration or change of course caused by the Government;


                    (ii)  Mandatory health fees and health insurance charges; and


                    (iii)  Any flat rate charge applicable to all students registered for research that appears in the Contractor's publicly announced fee schedule.


              (e)  The Contractor shall not charge the Government for—


                    (i)  Permit charges, such as vehicle registration or parking fees, unless specifically authorized in the request for service; and


                    (ii)  Any equipment, refundable deposits, or any items or services (such as computer time) related to student research.


              (f)  Normally, the Contractor shall not directly charge individual students for application fees or any other fee chargeable to this agreement.  However, if the Contractor's standard procedures require payment of any fee before the student is enrolled under this agreement, the Contractor may charge the student.  When the Contractor receives payment from the Government, the Contractor shall fully reimburse the student.


              (g)  For each term the Contractor enrolls students under this agreement, the Contractor shall submit _______ copies of an invoice listing charges for each student separately.  The Contractor shall submit invoices within ______ days after the start of the term and shall include—


                    (i)  Agreement number and inclusive dates of the term;


                    (ii)  Name of each student;


                    (iii)  A list showing each course for each student if the school charges by credit hour;

                    (iv)  The resident or nonresident status of each student (if applicable to the Contractor's school); and


                    (v)  A breakdown of charges for each student, including credit hours, tuition, application fee, and other fees.  Provide a total for each student and a grand total for all students listed on the invoice.


              (h)  If unforeseen events require additional charges that are otherwise payable under the Contractor's normal tuition and fee schedule, the Contractor may submit a supplemental invoice or make the adjustment on the next regular invoice under this agreement.  The Contractor shall clearly identify and explain the supplemental invoice or the adjustment.


              (i)  The Contractor shall apply any credits resulting from withdrawal of students, or from any other cause under its standard procedures, to subsequent invoices submitted under this agreement.  Credits should appear on the first invoice submitted after the action resulting in the credits.  If no subsequent invoice is submitted, the Contractor shall deliver to the Contracting Officer a check drawn to the order of the office designated for contract administration.  The Contractor shall identify the reason for the credit and the applicable term dates in all cases.


      4.  Withdrawal of students.


              (a)  The Government may, at its option and at any time, withdraw financial support for any student by issuing official orders.  The Government will furnish ______ copies of the orders to the Contractor within a reasonable time after publication.


              (b)  The Contractor may request withdrawal by the Government of any student for academic or disciplinary reasons.


              (c)  If withdrawal occurs before the end of a term, the Government will pay any tuition and fees due for the current term.  The Contractor shall credit the Government with any charges eligible for refund under the Contractor's standard procedures for any students in effect on the date of withdrawal.


              (d)  Withdrawal of students by the Government will not be the basis for any special charge or claim by the Contractor other than charges under the Contractor's standard procedures.


      5.  Transcripts.  Within a reasonable time after withdrawal of a student for any reason, or after graduation, the Contractor shall send to the Contacting Officer (or to an address supplied by the Contracting Officer) one copy of an official transcript showing all work by the student at the institution until such withdrawal or graduation.


      6.  Student teaching.  The Government does not anticipate the Contractor awarding fellowships and assistantships to students attending school under this agreement.  However, for graduate students, should both the student and the Contractor decide it to be in the student's best interests to assist in the institution's teaching program, the Contractor may provide nominal compensation for part-time service.  Base the compensation on the Contractor's practices and procedures for other students of similar accomplishment in that department or field.  The Contractor shall apply the compensation as a credit against any invoices presented for payment for any period in which the student performed the part-time teaching service.


      7.  Termination of agreement.


              (a)  Either party may terminate this agreement by giving 30 days advance written notice of the effective date of termination.  In the event of termination, the Government shall have the right, at its option, to continue to receive educational services for those students already enrolled in the contractor's institution under this agreement until such time that the students complete their courses or curricula or the Government withdraws them from the Contractor's institution.  The terms and conditions of this agreement in effect on the effective date of the termination shall continue to apply to such students remaining in the Contractor's institution.


              (b)  Withdrawal of students under Schedule provision 4 shall not be considered a termination within the meaning of this provision 7.


              (c)  Termination by either party shall not be the basis for any special charge or claim by the Contractor, other than as provided by the Contractor's standard procedures.




Use the following clauses in educational service agreements:


      1.  FAR 52.202-1, Definitions, and add the following paragraphs (h) through (m).


              (h)  “Term” means the period of time into which the Contractor divides the academic year for purposes of instruction.  This includes “semester,” “trimester,” “quarter,” or any similar word the Contractor may use.


              (i)  “Course” means a series of lectures or instructions, and laboratory periods, relating to one specific representation of subject matter, such as Elementary College Algebra, German 401, or Surveying.  Normally, a student completes a course in one term and receives a certain number of semester hours credit (or equivalent) upon successful completion.


              (j)  “Curriculum” means a series of courses having a unified purpose and belonging primarily to one major academic field.  It will usually include certain required courses and elective courses within established criteria.  Examples include Business Administration, Civil Engineering, Fine and Applied Arts, and Physics.  A curriculum normally covers more than one term and leads to a degree or diploma upon successful completion.


              (k)  “Catalog” means any medium by which the Contractor publicly announces terms and conditions for enrollment in the Contractor's institution, including tuition and fees to be charged.  This includes “bulletin,” “announcement,” or any other similar word the Contractor may use.


              (l)  “Tuition” means the amount of money charged by an educational institution for instruction, not including fees.


              (m)  “Fees” means those applicable charges directly related to enrollment in the Contractor's institution.  Unless specifically allowed in the request for services, fees shall not include—


                    (1)  Any permit charge, such as parking and vehicle registration; or


                    (2)  Charges for services of a personal nature, such as food, housing, and laundry.


      2.  FAR 52.203-3, Gratuities.


      3.  FAR 52.203-5, Covenant Against Contingent Fees.


      4.  FAR 52.204-1, Approval of Contract, if required by department/agency procedures.


      5.  FAR 52.215-2, Audit and Records--Negotiation.


      6.  FAR 52.215-8, Order of Precedence--Uniform Contract Format.


      7.  Conflicts Between Agreement and Catalog.  Insert the following clause:




      If there is any inconsistency between this agreement and any catalog or other document incorporated in this agreement by reference or any of the Contractor's rules and regulations, the provisions of this agreement shall govern.


      8.  FAR 52.222-3, Convict Labor.


      9.  Under FAR 22.802, FAR 22.807, and FAR 22.810, use the appropriate clause from FAR 52.222-26, Equal Opportunity.


      10.  FAR 52.233-1, Disputes.


      11.  Assignment of Claims.  Insert the following clause:




No claim under this agreement shall be assigned.


      12.  FAR 52.252-4, Alterations in Contract, if required by department/agency procedures.




Agreement No. _____________________

Date _________________________




BY:  _____________________________


(Contracting Officer)


Activity __________________________

Location _________________________




BY:  __________________________

(Title) ________________________





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