Appendix VIII - Security Procedures for Handling Confidential Business Information Provided to Contractors or Subcontractors

A. The Project Officer may disclose to the Contractor confidential business information (CBI) necessary to carry out the work required under this Contract. The Contractor agrees to use the CBI only under the following conditions.

1. The Contractor and Contractor's employees shall (i) use CBI only for the purposes of carrying out the work required by the Contract; (ii) not disclose the information to anyone other than CPSC employees authorized to have access to CBI without prior written CPSC approval, (iii) return to the Project Officer all copies of the information, and any abstracts or excerpts therefrom, upon request by the Project Officer; whenever the information is no longer required by the Contractor for the performance of the work required by the Contract; or upon completion of the Contract; and (iv) comply with the CPSC Security Regulation (16 CFR part 1017) in handling and storing CBI.

2. The Contractor shall obtain a written agreement to comply with the above limitations from each of the Contractor's employees who will have access to the information, before the employee is allowed access. A copy of each agreement shall be furnished to the Project Officer.

B. The Contractor shall not use any CBI supplied by CPSC or obtained during performance hereunder to compete with any business to which the CBI information relates, or in any other manner except as authorized by the contract. Unauthorized use or disclosure of CBI may result in termination of the Contract for default and may subject the Contractor and Contractor's employees to civil and criminal penalties.

C. The Contractor shall not computerize any CBI obtained by the CPSC from the Environmental Protection Agency under TSCA and furnished by CPSC to the Contractor.

D. The Contractor agrees that these contract conditions concerning the use and disclosure of CBI are included for the benefit of, and shall be enforceable by, both CPSC and any affected business having a proprietary interest in the information.

E. The Contractor agrees to obtain the written consent of the Commission's Contracting Officer and the Acting Executive Director for Health Sciences prior to entering into any subcontract that will involve the disclosure of CBI by the contractor to a subcontractor. The Contractor also agrees to include this clause, including this subparagraph, in each subcontract where CBI will be furnished to the subcontractor.

F. The Contractor shall, upon request of the CPSC Contracting Officer, permit the Contracting Officer or other Commission personnel access to and inspection of the Contractor's facilities for the purpose of ascertaining the Contractor's compliance with this clause.