48 C.F.R. PART 245—GOVERNMENT PROPERTY
Title 48 - Federal Acquisition Regulations System
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36448, July 31, 1991, unless otherwise noted.
(a) The property administrator shall perform property administration in accordance with DoD 4161.2–M, Manual for the Performance of Contract Property Administration. [56 FR 36448, July 31, 1991, as amended at 56 FR 67220, Dec. 30, 1991] Agency-peculiar property, as used in DoD, means military property and includes end items and integral components of military weapons systems, along with the related peculiar support equipment which is not readily available as a commercial item. Facilities project means a Government project to provide, modernize or replace facilities for use by a contractor in performing a Government contract or subcontract. Industrial plant equipment (IPE) means plant equipment in Federal stock group 34 with an acquisition cost of $15,000 or more used for cutting, abrading, grinding, shaping, forming, joining, heating, treating, or otherwise altering the physical properties of materials, components or end items entailed in manufacturing, maintenance, supply, processing, assembly, or research and development operations. IPE is further identified in AR 700–43/NAVSUP PUB 5009/AFM 78–9/DLAM 4215.1, Management of Defense-Owned Industrial Plant Equipment. Mapping, charting, and geodesy (MC&G) property is defined in the clause at 252.245–7000, Government Furnished Mapping, Charting and Geodesy Property. Other plant equipment (OPE) means plant equipment regardless of dollar value, used in or in conjunction with the manufacture of components or end items relative to maintenance, supply, processing, assembly or research and development operations. OPE excludes equipment categorized as IPE. Provide means either to furnish, as in Government-furnished property, or to acquire, as in contractor-acquired property. (a)(4)(A) Comply with DoD Directive 4275.5, Acquisition and Management of Industrial Resources, in processing a request for facilities. Submit requests for approval of facilities projects— (1) To the Secretaries of the Military Departments and the directors of defense agencies for Government-owned facilities projects if the project— (i) Is a research and development-funded effort not exceeding $3 million per fiscal year; or (ii) Is funded from procurement appropriations, approved on a location basis, and does not exceed $5 million for all property efforts during one fiscal year; or (iii) Is in support of a major system or subsystem (including ammunition-related projects) and the total investment will not exceed $25 million during the projected acquisition or maintenance effort. (2) To the Office of the Deputy Under Secretary of Defense (Industrial Affairs and Installations) for projects exceeding the limitations in paragraph (a)(4)(A)(1) of this subsection. (B) The contracting officer shall coordinate the Determination and Finding with the program or project manager. (C) Departments and agencies must submit reports of facilities projects to the House and Senate Armed Services Committees— (1) At least 30 days before starting facilities projects involving real property (10 U.S.C. 2662); and (2) In advance of starting construction for a facilities project regardless of cost. Use DD Form 1391, FY __, Military Construction Project Data, to notify congressional committees of projects that are not included in the annual budget. (b)(1)(A) Industrial plant equipment. Before acquiring industrial plant equipment— (1) Submit a DD Form 1419, DoD Industrial Plant Equipment Requisition, to the Defense Supply Center, Richmond (DSCR), Attn: DSCR-JH, 8000 Jefferson Davis Highway, Richmond, Va 23297–5100, in accordance with AR 700–43/NAVSUP PUB 5009/AFM 78–9/DLAM 4215.1, Management of Defense-Owned Industrial Plant Equipment, to determine whether existing, reallocable Government-owned facilities can be used. (2) Do not acquire any item listed on the DD Form 1419 until a certificate of nonavailability is received from DSCR. (B) Automatic data processing equipment. The administrative contracting officer submits contractor requests to acquire automatic data processing equipment to the Defense Information Systems Agency, Chief Information Officer, Defense Automation Resources Management Program Division, Attn: D03D, 701 South Courthouse Road, Arlington, VA 22204–2199, in accordance with the Defense Automation Resources Management Manual. [56 FR 36448, July 31, 1991, as amended at 62 FR 34127, June 24, 1997; 64 FR 51076, Sept. 21, 1999; 66 FR 49861, Oct. 1, 2001] Terminate facilities contracts when Government production and research property is no longer required for the performance of Government contracts or subcontracts, unless termination is not in the best interest of the Government. The contractor is not allowed to extend the time for use of property provided under the facilities contract without Government authorization. Use the clause at 252.225–7030, Restriction on Acquisition of Carbon, Alloy, and Armor Steel Plate, as prescribed in 225.7017–4. [57 FR 14995, Apr. 23, 1992] When a contractor will be responsible for preparing requisitioning documentation, include in the contract the requirement to prepare the documentation in accordance with DoD 4000.25–1–M, Military Standard Requisitioning and Issue Procedures (MILSTRIP). Copies are available from the address cited at 251.102(e)2.b(2). (b) Notice and approval. (1) The review requires a written evaluation from the appropriate technical specialist. (c) All Government-furnished mapping, charting, and geodesy (MC&G) property is under the control of the Director, National Imagery and Mapping Agency (NIMA). (i) MC&G property shall not be duplicated, copied, or otherwise reproduced for purposes other than those necessary for contract performance. (ii) Upon completion of contract performance, the contracting officer shall— (A) Contact the Director, NIMA(PP), 8613 Lee Highway, Fairfax, VA 22031–2137, for disposition instructions; (B) Direct the contractor to destroy or return all Government-furnished MC&G property not consumed during contract performance; and (C) Specify the destination and means of shipment for material to be returned to the Government. [56 FR 36448, July 31, 1991, as amended at 59 FR 27674, May 27, 1994; 64 FR 51076, Sept. 21, 1999] Use the clause at 252.245–7000, Government-Furnished Mapping, Charting, and Geodesy Property, in solicitations and contracts when mapping, charting, and geodesy property is to be furnished. [57 FR 42632, Sept. 15, 1992] Government use includes use on contracts for foreign military sales. Use on contracts for foreign military sales shall be on a rent-free basis. (1) The DoD normally recovers a fair share of nonrecurring costs of special tooling and special test equipment by including these costs in its calculation of the nonrecurring cost recoupment charge when major defense equipment is sold by foreign military sales or direct commercial sales to foreign governments or international organizations. Major defense equipment is defined in DODD 2140.2, Recoupment of Nonrecurring Costs on Sales of U.S. Items, as any item of significant military equipment on the United States Munitions List having a nonrecurring RDT&E cost of more than $50 million or a total production cost of more than $200 million. (2) When these cost thresholds are not met, the contracting officer shall assess rental charges for use of special tooling and special test equipment pursuant to the Use and Charges clause when administratively practicable. [56 FR 36448, July 31, 1991, as amended at 67 FR 61517, Oct. 1, 2002] (1) Approval. A contractor may use Government production and research property on work for foreign governments and international organizations only when approved in writing by the contracting officer having cognizance of the property. The contracting officer shall grant approval only if— (i) The use will not interfere with foreseeable requirements of the United States; (ii) The work is undertaken as a DoD foreign military sale; or (iii) For a direct commercial sale, the foreign country or international organization would be authorized to contract with the department concerned under the Arms Export Control Act. (2) Use charges. (i) The Use and Charges clause is applicable on direct commercial sales to foreign governments or international organizations. (ii) When a particular foreign government or international organization has funded the acquisition of specific production and research property, do not assess the foreign government or international organization rental charges or nonrecurring recoupments for the use of such property. (3) Waivers. (i) Rental charges for use of U.S. production and research property on commercial sales transactions to the Government of Canada are waived for all commercial contracts. This waiver is based on an understanding wherein the Government of Canada has agreed to waive its rental charges. (ii) Requests for waivers or reduction of charges for the use of Government facilities on work for foreign governments or international organizations shall be submitted to the contracting officer who shall refer the matter through contracting channels. In response to these requests, approvals may be granted only by the Director, Defense Security Cooperation Agency for particular sales that are consistent with paragraph (1)(iii) of this section. [56 FR 36448, July 31, 1991, as amended at 64 FR 51077, Sept. 21, 1999] (a)(i) Non-Government use of industrial plant equipment (IPE) exceeding 25 percent requires prior approval of the— (A) Assistant Secretary of the Army (AL&T); (B) Assistant Secretary of the Navy (RD&A); (C) Assistant Secretary of the Air Force (Acquisition); or (D) Director, Defense Logistics Agency. (ii) The authority in paragraph (a)(i) of this section may be delegated to the head of a contracting activity. Any redelegation requires the approval of the Office of the Deputy Under Secretary of Defense (Industrial Affairs and Installations). (iii) To determine percentage— (A) Compute the percentage of non-Government use on time available for use. Use contractor's normal work schedule as represented by the scheduled production shift hours. (B) Use a base time period which is neither less than three months nor more than one year. (C) Use may be averaged at a single plant for all items costing less than $25,000. (iv) Contractors should submit requests for non-Government use of IPE to the contract administration office at least six weeks before the projected use. The requests shall include: (A) Total number and acquisition cost of IPE items; and (B) For each unit of IPE with an acquisition cost of $25,000 or more, an itemized list including nomenclature, plant equipment code, year of manufacture and acquisition cost. (v) Approving officials shall retain for periodic review, documentation of the circumstances justifying non-Government use of IPE. [56 FR 36448, July 31, 1991, as amended at 62 FR 34127, June 24, 1997; 68 FR 23088, Apr. 30, 2003] If adequate controls are in place to meet the requirements of the clause at 252.242–7004, Material Management and Accounting System, the contractor's material control system may physically commingle inventories that may include materials for which costs are charged or allocated to fixed-price, cost-reimbursement, and commercial contracts. Government-furnished material (GFM) may not be physically commingled with other material, nor may GFM be used on contractor's commercial work. (a) The contractor may use DD Form 1342, DoD Property Record, as a source document for setting up prescribed records. The contractor shall prepare a DD Form 1342 in accordance with instructions contained in AR 700–43/NAVSUP PUB 5009/AFM 78–9/DLAM 4215.1, Management of Defense-Owned Industrial Plant Equipment (IPE)— (1) Upon receipt and acceptance of each item of IPE including items which, though part of a manufacturing system, would otherwise qualify as IPE; (2) Whenever major changes occur in the data initially submitted to Defense Supply Center Richmond (DSCR) (as specified by DLAM 4215.1); (3) When IPE, including general purpose components of special test equipment which otherwise qualify as IPE, is no longer required for the purpose authorized or provided; or (4) When disposal is completed. [56 FR 36448, July 31, 1991, as amended at 62 FR 34127, June 24, 1997] (a) Use the clause at 252.245–7001, Reports of Government Property, in all solicitations and contracts containing one of the following clauses— (1) FAR Section 52.245–2, Government Property (Fixed-Price Contracts); (2) FAR Section 52.245–5, Government Property (Cost Reimbursement, Time-and-Material, or Labor-Hour Contracts; (3) FAR Section 52.245–7, Government Property (Consolidated Facilities); (4) FAR Section 52.245–10, Government Property (Facilities Acquisition); or (5) FAR Section 52.245–11, Government Property (Facilities Use). [59 FR 27674, May 27, 1994] (1) Controlled substances means— (i) Narcotic, depressant, stimulant, or hallucinogenic drug or substance; (ii) Any other drug or substance controlled under Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970; or (iii) A drug or substance required to be controlled by international treaty, convention or protocol. (2) Demilitarization means the act of destroying the offensive or defensive characteristics of equipment or material to prevent its further military or lethal use. (3) Production scrap means material left over from the normal production process that has only remelting or reprocessing value, e.g., textile and metal clippings, borings, and faulty castings and forgings. (4) Serviceable or usable property means property that has a potential for use or sale value “as is” or with minor repairs or alterations; only property in Federal Condition Codes A1, A2, A4, A5, B1, B2, B4, B5, F7, or F8. (a) Authorization. (1) Contract administration offices (CAOs) may, with head of the contracting activity approval and contractor concurrence, authorize selected contractors to perform certain plant clearance functions if the volume of plant clearance warrants performance by the contractor. (2) The written authorization shall, as a minimum— (i) Designate the contractor as an “accredited contractor”; (ii) Identify the plant clearance actions to be performed; (iii) State that the Government may cancel part of or all of the authorization to perform plant clearance actions; and (iv) Provide for plant clearance officer participation when required. (b) Government oversight and assistance. (1) The contract administration office will ensure regular evaluation of the contractor's performance of the plant clearance function and any corrective action required. (2) The plant clearance officer shall— (i) Evaluate the adequacy and ensure compliance with contractor procedures; (ii) Ensure discrepancies are promptly resolved; (iii) Advise the contractor of screening and inventory schedule requirements; (iv) Respond to contractor requests to withdraw Government-furnished property from inventory schedules; (v) Evaluate physical, quantitative, and technical allocability of contractor inventory prior to disposal using Standard Form 1423, Inventory Verification Survey, as a guide; (vi) Direct contractor to delay disposition of nonallocable inventory pending a contracting officer decision; (vii) With the contractor's assistance, establish criteria for review and approval of selected contractor disposal decisions; (viii) Complete first endorsement section of DD Form 1640, Request for Plant Clearance, on referrals from plant clearance officers at prime contract administration offices for the disposal of subcontractor inventory; forward inventory schedules to the contractor for processing; and forward completed case file to the referring activity; and (ix) Work with the contractor, screeners, and buyers to ensure that the Government receives maximum reutilization and disposal proceeds. (c) Accredited contractor plant clearance duties. The accredited contractor shall— (1) Ensure inventory schedule acceptability. Use DD Form 1637, Notice of Acceptance of Inventory, if desired; (2) Suspend disposition of property when assets are determined nonallocable (FAR 45.606–3); (3) Withdraw property from inventory schedules and notify the affected screening activities. Obtain plant clearance officer approval for withdrawal of Government furnished property from inventory schedules (FAR 45.606–4); (4) Determine method of disposal under established priorities and document disposal decisions and actions; (5) Assign the automatic release date and the surplus release date; (6) Initiate prescribed screening and effect resulting transfers and donations; (7) Account for disposal of all contractor inventory and application of proceeds and submit to the plant clearance officer a Standard Form 1424, Inventory Disposal Report, or equivalent; (8) Maintain the donable file and release property to eligible donees (FAR 45.609); (9) Prepare, approve, sign, and maintain official plant clearance files and required forms (245.7101); (10) Not conduct noncompetitive sales of surplus contractor inventory; and (11) Notify the plant clearance officer in advance when bidding on property. [56 FR 36448, July 31, 1991, as amended at 56 FR 67220, Dec. 30, 1991] (a) North Atlantic Treaty Organization (NATO) cooperative project agreements may include disposal provisions of jointly acquired property without regard to any applicable disposal laws of the United States. (b) Disposal of such property may include a transfer of the U.S. interest in the property to one of the other governments participating in the agreement, or the sale of the property. (c) Payment for the transfer or sale of any U.S. interest shall be made in accordance with the terms of the project agreement. (1) Contractors authorized to sell inventory may not knowingly sell the inventory to any person or that person's agent, employee, or household member if that person— (i) Is a civilian employee of the DoD or the U.S. Coast Guard; or (ii) Is a member of the armed forces of the United States, including the Coast Guard; and (iii) Has any functional or supervisory responsibilities for or within the Defense Reutilization and Marketing Program, or for the disposal of contractor inventory. (2)(i) A contractor's authority to approve a subcontractor's sale, purchase, or retention at less than cost, and the subcontractor's authority to sell, purchase, or retain at less than cost if approved by a higher-tier contractor, does not include authority to approve— (A) A sale by a subcontractor to the next-higher tier contractor or to an affiliate of such contractor or of the subcontractor; or (B) A sale, purchase, or retention at less than cost, by a subcontractor affiliated with the next higher-tier contractor. (ii) The written approval of the plant clearance officer is required for each excluded sale, purchase, or retention at less than cost. (3) Demilitarization. The contractor shall demilitarize contractor inventory possessing offensive or defense characteristics, and not required within the DoD, in accordance with Defense Demilitarization Manual, DoD 4160.21–M–1. In unusual cases the plant clearance officer may authorize the purchaser to perform the demilitarization; however, the purchaser shall not be granted such authorization if the inventory is dangerous. (4) Classified inventory. Classified contractor inventory shall be disposed of in accordance with applicable security regulations or as directed by the contracting officer. (5) Dangerous inventory. Contractor inventory dangerous to public health or safety shall not be donated or otherwise disposed of unless rendered innocuous or until adequate safeguards have been provided. (a) If the schedules are acceptable, the plant clearance officer shall, within 15 days, complete and send the contractor a DD Form 1637, Notice of Acceptance of Inventory. (b) To assist in verifying inventory allocability, the plant clearance officer shall follow the instructions in 245.7201. (d) General instructions for completing forms. (4) The contractor shall use the following codes together with the disposal codes 1 through 9, X, and S (e.g., A1, F7, SS) to indicate the condition of the property— A—New, used, repaired, or reconditioned property; serviceable and issuable to all customers without limitations or restrictions; includes material with remaining shelf life of more than six months. B—New, used, repaired, or reconditioned property; serviceable and issuable or for its intended purpose but restricted from issue to specific units, activities, or geographical areas because of its limited usefulness or short service-life expectancy; includes material and remaining shelf life of three to six months. F—Economically reparable property which requires repair, overhaul or reconditioning; includes reparable items which are radioactively contaminated. H—Property which has been determined to be unserviceable and does not meet repair criteria. S—Property that has no value except for its basic material content. (e) Instructions for completing specific forms. (4) Inventory Schedule D (Special Tooling and Special Test Equipment) (SF 1432). (ii) Description. For termination inventory included in a settlement proposal, include cost of inventory acquired for performance of the entire contract in column F1 and cost of inventory acquired solely for the terminated portion of the contract in column F2. Cost of inventory acquired for the entire contract must be prorated between the terminated and nonterminated portions. (a) The contractor shall list excess industrial plant equipment (IPE) on DD Form 1342, DoD Property Record, and submit it to the Government property administrator for review and transmittal to the plant clearance officer. For numerically controlled IPE, the contractor shall prepare and submit DD Form 1342, section VI, (page 2), Numerically Controlled Machine Data. (b) Upon receipt of the DD Form 1342, the plant clearance officer will— (1) Designate the 75th day from the date of receipt as the automatic release date (ARD) and the 90th day as the screening completion date (SCD); and (2) Enter the ARD in Block 24 of the DD Form 1342. (a)(i) The contractor may request a pre-inventory scrap determination, made by the plant clearance officer after an on-site survey, if inventory is considered without value except for scrap. If approved, the contractor may make a single descriptive entry on an inventory schedule, generally describing the property and indicating its approximate total cost. The plant clearance officer will establish a plant clearance case and perform limited screening. (ii) If the contractor has an approved scrap procedure, routine disposal of production scrap and spoilage is authorized, and a plant clearance case is unnecessary. The contractor may similarly dispose of worn, broken, mutilated, or otherwise rejected parts from overhaul and repair contracts with the approval of the plant clearance officer. (iii) In addition to segregating scrap to maximize proceeds, the contractor may also consolidate sales of Government and contractor scrap if approved by the plant clearance officer. When a consolidated sale is approved, the plant clearance officer shall waive the scrap warranty required at 245.607–70. (iv) When a contractor's approved scrap procedure does not require physical segregation of Government and contractor scrap, the plant clearance officer shall ensure the proceeds of scrap sale are equitably distributed. (b) Precious metals are silver, gold, platinum, palladium, rhodium, iridium, osmium, and ruthenium. (i) At the beginning of every fiscal year, the Defense Reutilization and Marketing Service (DRMS) will provide each contract administration office with disposition instructions for certain categories of precious metals-bearing property, including scrap and usable items containing recoverable quantities of these metals. The disposition instructions— (A) Will remain in effect for the entire fiscal year, unless modified by DRMS; and (B) Will contain a fund citation to be used when disposition requires shipment of precious metals-bearing property for recovery. (ii) Plant clearance officers shall obtain disposition instructions for precious metals-bearing property not covered by the annual disposition instructions from the Defense Reutilization and Marketing Service, Attn: DRMS-OC, 74 N. Washington Avenue, Battle Creek, MI 49017–3092. [59 FR 27674, May 27, 1994] (a) If the contractor sells its inventory as scrap to anyone, including a holding contractor, the contractor shall include in the sales contract a signed copy of DD Form 1639, Scrap Warranty. (b) The contracting officer may release the contractor from the terms of the scrap warranty in return for consideration paid to the Government. The consideration will represent the difference between— (1) The sale price of the scrap; and (2) A fair and reasonable price for the material if it had been sold for purposes other than scrap. (c) The contractor shall pay the consideration to the Government and the Government may execute the release even though the contract containing the warranty was not made directly with the Government. (d) If the scrap is resold to a second buyer, the first buyer shall obtain a scrap warranty from the second buyer. Upon receipt of the second buyer's scrap warranty, the Government will release the first buyer from liability under the original warranty. (a) The plant clearance officer shall arrange for inspection of property at the contractor's plant if requested by a prospective transferee, in such a manner as to avoid interruption of the contractor's operations. (b)(1) For the first 30 days, property screening will be limited to the contracting agency and the requiring agency, when they are not the same. The requiring agency shall have priority for retention of listed items. (a) Special test equipment with standard components. (1) The contractor shall report any excess special test equipment (STE) using SF 1432, Inventory Schedule D (Special Tooling and Special Test Equipment). The contractor shall list and describe on the inventory schedule all general-purpose components which, if economically severable from the STE, would otherwise be classified as industrial plant equipment (IPE), other plant equipment (OPE), or automatic data processing equipment (ADPE). (2) The plant clearance officer will perform the initial screening of the composite STE unit. (A) If the contracting department/agency and the requiring department/agency decline the STE or the standard components or do not approve their transfer to another contract; then, (B) The plant clearance officer will screen the STE and any severable components with the— (1) General Services Administration—STE unit, less any standard components, and nonreportable standard components; (2) Defense Supply Center Richmond—IPE components; (3) Contractor Inventory Redistribution System—OPE components; and (4) Defense Information Systems Agency, Chief Information Officer, Defense Automation Resources Management Program Division—ADPE components. [56 FR 36448, July 31, 1991, as amended at 62 FR 34128, June 24, 1997] The Defense Logistics Agency will pay for the movement of industrial plant equipment under the direction and control of the Defense Industrial Plant Equipment Center. (a) Screen serviceable and usable contractor inventory through CIRS when it— (1) Is listed on SF 1428, Inventory Schedule B, or SF 1434, Inventory Schedule E; and (2) Has a national stock number, and line item acquisition value in excess of $50; or (3) Has a line item acquisition value in excess of $1,000 ($500 for furniture) but no national stock number. (b) Using Standard Form 120, Report of Excess Personal Property, the plant clearance officer will send two copies of SF 1428 or SF 1434 (or authorized substitutes) to the Defense Reutilization and Marketing Service (DRMS). DRMS will notify the plant clearance officer of items processed, not accepted, or available for local area screening. (c) Property subject to CIRS processing will be screened within DoD for 30 days. On the 31st day, unless otherwise specified on SF Form 120, appropriate items not requisitioned by DoD will be reported to the General Services Administration (GSA) for standard Federal agency and donation screening. Examples of items which are not reportable to GSA include usable hazardous cleaners and solvents. (d) For requisitioned items, DRMS will issue shipping instructions to the plant clearance officer. During the first 45 days of the screening period, the plant clearance officer forwards any requisitions received to DRMS. After 45 days, the plant clearance officer forwards the requisition directly to GSA. (e) The contractor sends one copy of the shipping document to DRMS when shipment has been made. (f) Unless directed by the contracting officer, motor vehicles excess to Army and Navy contracts shall not be screened through CIRS. [56 FR 36448, July 31, 1991, as amended at 60 FR 29501, June 5, 1995] (a) Reporting. Within 15 days of receipt, the plant clearance officer will forward two copies of the DD Form 1342, DoD Property Record, to the Defense Supply Center Richmond (DSCR), ATTN: JH, 8000 Jefferson Davis Highway, Richmond, VA 23297–5100, for all IPE not condition coded “X” or “S.” Process IPE condition coded “X” or “S” in accordance with department or agency procedures. (b) Screening—(1) First 30 days. DSCR will— (i) Screen excess IPE against all DoD requirements with priority given to requirements of the owning department/agency through the 30th day. (ii) For items selected, issue shipping instructions containing accounting, funding, transportation, routing recommendations, and preservation instructions. (2) 31st through 75th day. (i) DSCR will report excess IPE to GSA on 31st day. (ii) GSA will— (A) Approve department/agency requests on first come-first served basis; (B) Approve and forward transfer orders to the contract administration office; and (C) Forward copies of approved transfer orders to DSCR. (3) 76th through 90th day. GSA will— (i) Provide for screening for donation; (ii) Receive, approve and forward donation applications to the contract administration office; and (iii) Send copies of approved applications to DSCR. (4) After 90th day. If DoD requirement is identified, and item is available, ship item against the requirement unless compelling reasons exist for not shipping item. (c) The plant clearance officer shall ensure that a copy of the shipping document is submitted to DSCR when IPE is transferred use-to-use or use-to-storage within DoD. (d) When GSA sells IPE that is excess to ownership but not to DoD requirements, report the sale to DSCR in accordance with department/agency procedures. [56 FR 36448, July 31, 1991, as amended at 62 FR 34128, June 24, 1997] Report ADPE that is Government-owned or leased by the contractor (with Government purchase option or other interests, including use rights) to the Defense Information Systems Agency, Defense Automation Resources Management Program Division (DARMP). DARMP does all required screening, including General Services Administration screening, for ADPE. (See the Defense Automation Resources Management Manual.) [62 FR 34128, June 24, 1997] Agencies may donate, with GSA approval and without expense to the United States, certain material not needed by DoD to certain organizations such as veterans' organizations, soldiers' monument associations, State museums, and incorporated educational, not for profit museums. For further guidance, see DoD 4160 .21–M, Defense Materiel Disposition Manual. [56 FR 36448, July 31, 1991, as amended at 67 FR 61517, Oct. 1, 2002] (a) See Subpart 245.73 for sales of contractor inventory under the control of DoD. (1) Unless otherwise provided in the contract, the proceeds of any sale, purchase, or retention shall be— (i) Credited to the Government as part of the settlement agreement; (ii) Credited to the price or cost of the contract; (iii) Applied as otherwise directed by the contracting officer; or (iv) Forwarded to the plant clearance officer. The plant clearance officer— (A) Within two days after receipt will send the proceeds and a DD Form 1131, Cash Collection Voucher, to the designated disbursing officer. Identify on the DD Form 1131 the contractor name and contract number; or (B) For contractors with an approved scrap procedure, will ensure the proceeds are appropriately applied to an overhead account. The plant clearance officer may assign a representative who, with the assistance of the contract auditor, shall periodically validate that proceeds from sales of production generated scrap are collected and applied to the appropriate account. (2) Except as prescribed in paragraph (1)(iv)(B) of this subsection, the plant clearance officer will not close the plant clearance case until verification is received that the credit has, in fact, been properly applied. (1) Normally, DRMS disposal activities shall be used to dispose of surplus contractor inventory located outside the United States or Canada. However, if authorized by the contracting officer, a contractor may sell or make other disposition of inventory in foreign countries. (2) Sale or other disposition of foreign inventory by the contractor, including sale to foreign governments, requires that— (i) The sales contract or other document transferring title include the following certificate:
The Purchaser certifies that the property covered by this contract will be used in (name of country). In the event of resale or export by the Purchaser of any of the property acquired at a price in excess of $1,000 United States dollars or equivalent in other currency at the official exchange rate, the Purchaser agrees to obtain the approval of (name and address of Contracting Officer); and (ii) The contracting officer approve sales contracts, resales, or exports. Approval is permitted only if— (A) The proposed purchaser's name is not on the list of Parties Excluded from Procurement Programs; and (B) The sales contract or other document forbids exports by purchasers and subpurchasers to communist areas (FAR 25.702) or other prohibited destinations. (a) Before authorizing storage, the contracting officer shall ensure funds are available to pay for the storage and related tasks. In addition, the contracting officer shall ensure an annual review of the need for continued storage at Government expense. (b) All storage contracts or agreements shall be fully funded and separately priced and shall include all allocable costs. The plant clearance officer shall— (1) Record the reason for disposing of the property— (i) As scrap and salvage; (ii) By abandonment or destruction; and (iii) By noncompetitive sale; (2) Use DD Form 1641, Disposal Determination/Approval, to record disposal determinations; and (3) File the completed form in the plant clearance case file. (a) The head of a contracting activity for the Defense Logistics Agency, or the head of the contract administration office for other departments and agencies shall select, appoint, or terminate (in writing) property administrators and plant clearance officers. (b) In selecting qualified property administrators and plant clearance officers, the appointment authority shall consider experience, training, education, business acumen, judgment, character, and ethics. The plant clearance officer shall— (a) Instruct the contractor on the preparation of inventory schedules; (b) Make pre-inventory scrap determinations; (c) Determine the acceptability of inventory schedules and DD Forms 1342, DoD Property Record; (d) Prepare and maintain plant clearance cases and disposal documents; (e) Initiate screening and provide technical support to screeners in the selection of assets; (f) Conduct or arrange for verification of the following— (1) Quantity, condition, description, and special processing requirements of property listed on inventory schedules; (2) Technical and quantitative allocability of property; (g) Ensure the timely shipment or release by the contractor of property selected for transfer and donation; (h) Determine the appropriate method of disposal for items not selected for Federal agency use or donation and ensure final plant clearance is accomplished; (i) Evaluate and monitor the contractor's surplus property sales program; (j) For individual surplus property sales— (1) Approve method of sale; (2) Ensure the sales offerings meet prescribed requirements; (3) Witness bid openings; (4) Evaluate bids; (5) Approve sale awards; (6) Secure anti-trust clearances, as required; (7) Recommend the reasonableness of selling expenses; and (8) Ensure that sales proceeds are collected and property credited; (k) Monitor ongoing plant clearance actions to ensure delays are minimized and, when necessary, work with the contractor and property administrator to implement improvements; (l) Evaluate the adequacy of the contractor's property disposal procedures; (m) Support the property administrator during the compliance analysis of the disposition portion of the contractor's property control procedures; (n) Report all disposal deficiencies to the property administrator; (o) Account for all contractor inventory reported for disposal by the contractor and prepare prescribed plant clearance reports; and (p) Advise and assist the contractor, contracting officer, inventory manager, Federal agencies, and eligible donees in actions related to the proper and timely disposal of contractor inventory. [57 FR 42632, Sept. 15, 1992] Use the forms listed below in performance of plant clearance actions. Use for transfers, donations, and sales of motor vehicles. The contracting officer shall execute the SF 97 and furnish it to the purchaser. Use for transfer and donation of contractor inventory. Donations of industrial plant equipment may be shipped via DD Form 1149. This form may also be used to consolidate contractor inventory redistribution system-directed shipments going to the same destination. Use for shipments of excess industrial plant equipment and contractor inventory redistribution system (CIRS) inventory. Use to request plant clearance assistance or transfer plant clearance. Use the following guidance for verifying inventory schedules— (a) Allocability. (1) Review contract requirements, delivery schedules, bills of material, and other pertinent material. Determine whether schedules include material which— (i) Is more than required or reasonably expected to be required for completion of the contract; or (ii) Might be usable on the current contract, or diverted to other commercial work or Government use. (2) Review the contractor's— (i) Recent purchases of similar material; (ii) Plans for current and scheduled production; (iii) Stock record entries; and (iv) Bills of material for similar items. (b) Quantity. Ensure available inventory is in accordance with quantities listed on the inventory schedules. While a complete physical count of each item is not required, perform sufficient checks to ensure accurate quantities. (c) Condition. Ensure the inventory condition matches that shown on the inventory schedules. (a) Upon receipt of an acceptable inventory schedule or a DD Form 1342, DoD Property Record, the plant clearance officer shall establish a plant clearance case file. The case folder will— (1) Identify the case number (see 245.7203); (2) Indicate the contractor's name and contract number; (3) Note the word “Termination” if applicable; and (4) Consolidate all inventory schedules applicable to one contract at the same location, if possible. (b) As a minimum, include in the plant clearance case file— (1) Inventory schedules or DD Form 1342, DoD Property Record, annotated to show all disposal actions; (2) Copies of documents forwarding inventory schedules to the appropriate screening activity; (3) Shipping or other instructions and correspondence directing disposition of contractor inventory; (4) Shipping documents transferring inventory; (5) Inventory verification survey or other documents showing completion of allocability review; (6) Forms authorizing donation or sale; (7) Document showing disposition of proceeds from plant clearance actions; and (8) Any other documents pertinent to disposal actions, including review board cases, antitrust clearances, and inventory disposal reports. (a) Use a three-part, 11-character number constructed as follows: (1) Part 1: DoD Activity Address Number (6-character alphanumeric code) assigned to the contract administering activity. (2) Part 2: Locally assigned 4-character consecutive alphanumeric code, beginning each calendar year with 001 continuing as necessary through ZZZ. The fourth digit is the last number of the calendar year. (3) Part 3: The 11th character is a single letter identifying the department/agency:
C—Army Q—Navy E—Air Force L—Marine Corps U—Defense Logistics Agency N—Defense Nuclear Agency M—National Imagery and Mapping Agency S—NASA D—Other DoD Activities O—Non-DoD Activities (b) Record the plant clearance number on DD Form 1635, Plant Clearance Case Register, or mechanized equivalent. [56 FR 36448, July 31, 1991, as amended at 64 FR 51077, Sept. 21, 1999] (a) Prepare Standard Form 1424, Inventory Disposal Report, for each completed plant clearance case. For terminated contracts, prepare a consolidated Inventory Disposal Report for each termination docket. (b) Distribute the report to the contracting officer and to any other activities having an interest in the inventory disposal. (c) Items on the form are self-explanatory except: (1) Item 12—Insert net change due to shortages, overages, errors, pricing, or withdrawals, etc. Explain in item 16, Remarks. (2) Item 14—Insert amount contractor is retaining or purchasing at full acquisition cost (see FAR 45.605–1). (3) Item 15—Insert acquisition cost and net credit (full credit less approved handling, transportation, and restocking charges for items returned to supplier). (4) Item 16—Insert the acquisition cost for all transfers accomplished. For lines 16A and 16B, insert subtotals as indicated. (5) Item 18—Insert acquisition cost and gross proceeds. When approved sale costs are reimbursed from proceeds, show net proceeds in Item 26, Remarks. (6) Items 20 and 21—Use to identify and report transactions not otherwise identified, such as assets shipped to a Government precious metals reclamation activity, etc. Further explanation may be provided in Item 26, Remarks, if necessary. (7) Item 25—Totals dispositions must equal amounts on line 13 and must reflect all disposal actions within the case. (8) Item 26—Show the specific disposition of proceeds reported in Items 14, 15, and 18. Also indicate amounts deleted for specific contractor claims, or applied as a credit to the claim. Explain any entry requiring explanation. (a) Contract administration offices with plant clearance responsibilities will— (1) Use DD Form 1638, Report of Excess and Surplus Contractor Inventory, or mechanized equivalent, to report the disposition of contractor inventory. Do not include disposition actions transferred to other offices. Unless headquarters of the administering activity directs otherwise, complete only the column total for each line of this report. (2) Prepare quarterly reports for periods ending March 31, June 30, September 30, and December 31. Activities preparing manual reports will submit duplicate reports to the headquarters of the administering activity within ten working days after the close of the report period. (Report Control Symbol DD(I&L)(Q)1430). (b) Items on the report are self-explanatory except: (1) Line 1—Insert totals from line 7 of the preceding report. (2) Line 2—Insert net changes due to shortages, overages, errors, or withdrawals (other than purchases or retention at cost). (3) Line 3—Insert total excess inventory reported by contractors during the report period. (4) Line 5—Insert total plant clearance cases completed during the report period. Do not report cases as completed until all property is disposed. Acquisition cost must equal line 19. (5) Line 8—Insert amount retained or withdrawn at full cost. (6) Line 9—Insert acquisition cost in the “Acquisition Cost” column and insert acquisition cost less handling, transportation, or restocking charges, in the “Proceeds” column. (7) Line 10—Insert acquisition cost of all transfers completed during the report period. On lines 10A through 10H, insert subtotals representing transfers to the agency indicated. Exclude amounts on lines 10A through 10H when computing line 19 totals. (8) Line 12—Insert the acquisition cost and gross proceeds. When sale costs are reimbursed from proceeds, show net proceeds in remarks. (9) Lines 14 and 15—Used to identify and report other transactions. (10) Line 18—Insert Section II totals. Line 18 acquisition cost must equal acquisition cost on line 5. As a minimum, the plant clearance officer will provide the following information in a letter forwarding DD Forms 1342 to DSCR— (a) Number of DD Forms 1342 included; (b) Automatic release date; (c) Screening complete date; (d) Contractor's name and address; (e) Contract number; (f) Contracting activity that awarded the contract under which the contractor acquired the equipment; (g) Location of the industrial plant equipment; (h) Total acquisition cost; (i) A statement advising that the automatic release date will not be extended; (j) A note stating that— (1) Request for transfer or shipment must include appropriate fund citations for packing, crating, and handling charges; and (2) Government bills of lading (GBLs) should be furnished or, if shipment will be accomplished by other than GBL, DSCR must cite transportation funds; and (k) The plant clearance officer's signature block. [56 FR 36448, July 31, 1991, as amended at 62 FR 34128, June 24, 1997] (a) Screening must be completed before any surplus contractor inventory sale. (b) Except as provided in 245.7307, sales of surplus contractor inventory shall be competitive. (c) The commander of the contract administration office must approve the use of auctions, spot bids, or retail sales. [56 FR 36448, July 31, 1991, as amended at 63 FR 31938, June 11, 1998] (a) Describe the property as “used” or “unused.” Indicate if unused property is still in the manufacturer's original containers. Qualifying statements such as “well-preserved” or “repairs required” are authorized. Do not use condition codes or the terms “new” or “salvage.” (b) Property descriptions must be accurate and adequate for identification by prospective bidders. Use commercial terminology and original manufacturer and brand name, if applicable. (a) Consider combining property into lots when the quantities, value, or nature of the property makes it uneconomical to sell separately. (b) When lotting is appropriate and economically practical— (1) Size the lots to encourage bidding by small businesses or individuals; (2) Lot unused items by make or manufacturer, except when quantities or dollar values are small; (3) Lot commercially similar items when practicable; (4) Lot used and unused items separately unless quantities, value, or nature of property makes it uneconomical to sell separately; (5) Size lots large enough to ensure the selling costs are not disproportionate to the anticipated proceeds. Offerors may be solicited to bid for groups or for the entire offering by use of the following:
Item _____ (Alternate Bid) This item consists of all property listed and described in Items ____ to ____, inclusive. Award under this item will be made only if the highest acceptable bid on this item is equal to, or greater than, the total of the highest acceptable bids on Items ____ to ____, inclusive. (a) Unit price basis—requires the offeror to state the bid price in terms of the quantity or weight generally applied in commercial sales of similar items. (b) Lot price basis—requires the offeror to submit a bid for the entire lot. Use the lot price basis of sale only when property cannot be sold by unit measure or the potential sales return is small. (a) The plant clearance officer will ensure the contractor solicits a sufficient number of bidders to obtain adequate competition. (b) When large quantities of property, special commodities, or unusual geographic locations are involved, the plant clearance officer is encouraged to obtain additional listings from: Defense Reutilization and Marketing Service, Attn: DRMS-OCR, 74 North Washington Avenue, Battle Creek, MI 49017–3092. (a) The contractor will use formal invitations for bid unless the plant clearance officer approves use of informal bid procedures. (b) The contractor shall solicit bids at least 15 calendar days before bid opening to allow adequate opportunity to inspect property and prepare bids. (c) For large sales, the contractor may use summary lists of items offered as bid sheets with detailed descriptions attached. (d) In addition to mailing or delivering notice of the proposed sale to prospective bidders, the contractor may, when the results are expected to justify the additional expense— (1) Display a notice of the proposed sale in appropriate public places. (2) Publish a sales notice in appropriate trade journals or magazines and local newspapers. (e) When the acquisition cost of the property to be sold at one time, in one place, is $250,000 or more, the contractor shall send a notice of the proposed sale to: U.S. Department of Commerce, Commerce Business Daily, Sales Section, P.O. Box 5999, Chicago, IL 60680. (1) The contractor shall send the CBD notice at least 20 days before bid opening, or date of sale. (2) CBD notices shall be— (i) Double spaced and in synopsis form suitable for printing; (ii) Transmitted by fastest mail available; and (iii) Contain the following information in the order listed: (A) Name and address of contractor issuing the invitation for bids; (B) Name or title, address, and telephone number of the official from whom copies of the sales offering and other information can be obtained; (C) Description of the property to be sold including, when desired, the total estimated acquisition cost; (D) The number of the invitation or sale; (E) The date of the sale or bid opening; (F) The type of sale, i.e., sealed bid, spot bid, auction; and (G) The location of the property. (f) The plant clearance officer or representative will witness the bid opening. Within two working days after bid opening, the contractor will submit to the plant clearance officer two copies of an abstract of all bids, signed by the witnessing Government representative. (a) Upon approval of the plant clearance officer, the contractor may issue informal invitations to bid (orally, telephonically, or by other informal media), provided— (1) Maximum practical competition is maintained; (2) Sources solicited are recorded; and (3) Informal bids are confirmed in writing. (b) Bids by the contractor or its employees shall be submitted to the plant clearance officer prior to soliciting bids from other prospective bidders. The plant clearance officer will— (1) Evaluate bids to establish that the sale price is fair and reasonable, taking into consideration— (i) Knowledge or tests of the market; (ii) Current published prices for the property; (iii) The nature, condition, quantity, and location of the property; and (iv) Information from the Defense Reutilization and Marketing Service. (2) Approve award to the responsible bidder whose bid is most advantageous to the Government, price and other factors considered. Award shall not be approved to any bidder who is not eligible to enter into a contract with the DoD due to inclusion on the list of Parties Excluded from Procurement Programs. If a compelling reason exists to award to a bidder on the excluded list, the plant clearance officer shall request approval from the headquarters of the administering activity. (3) Notify the contractor within five working days of the bidder to whom an award shall be made. The contractor shall make the award, collect the proceeds of the sale, and release the property to the purchaser. The contractor shall provide the plant clearance officer with evidence of delivery reflecting actual quantities released to the purchaser. When sale services are needed, the plant clearance officer will document the reasons in the case file and make arrangements directly with the Defense Reutilization and Marketing Service (DRMS) or General Services Administration (GSA). The arrangements will include a requirement to return all proceeds to the plant clearance officer for crediting in compliance with FAR 45.610–3. (a) Non-competitive sales include purchases or retention at less than cost by the contractor. (b) Non-competitive sales may be made when— (1) The contracting department/agency or the plant clearance officer determines that this method is essential to expeditious plant clearance; (2) The sale is otherwise justified on the basis of circumstances listed in 245.7307–2; (3) The Government's interests are adequately protected; and (4) FAR subpart 1.7 requirements are met. (c) Non-competitive sales shall be at fair and reasonable prices not less than those reasonably expected under competitive sale. (a) Conditions justifying non-competitive sales are— (1) Scientific equipment allocated to terminated research and development contracts with educational institutions; (2) No acceptable bids received under an advertised competitive sale; (3) Property value so small that anticipated proceeds would not warrant formal competitive sale; (4) Sale to States, territories, possessions, political subdivisions thereof, or tax-supported agencies therein, and the estimated fair market value of the property and other satisfactory terms of disposal are obtained; (5) Specialized nature of the property would not create bidder interest; (6) Removal of the property would reduce its value or result in disproportionate handling expenses; or (7) Such action is essential to the Government's interests. (b) The contracting department/agency will provide the contract administration office the sales justification and any special sales provisions when the department/agency decides to sell production equipment to the contractor by non-competitive sale. (a) When contractor inventory with an estimated fair market value of $3 million or more or any patents, processes, techniques, or inventions, regardless of cost, are sold or otherwise disposed of to private interests notify the Attorney General and the General Services Administration (GSA) of the proposed terms and conditions of disposal. Submit the following information to the Department of Justice and the GSA through the contract administration agency channels. Report Control Symbol DD-ACQ(AR) 1492 applies. (1) Location and description of property (specify tonnage if scrap); (2) Proposed sale price (explain if the proposed purchaser was not highest bidder); (3) Acquisition cost of property; (4) Manner of sale, indicating whether by— (i) Sealed bid (specify number of bidders solicited and bids received); (ii) Auction or spot bid (state how sale was advertised); or (iii) Negotiation (explain why property was not sold competitively); (5) Proposed purchaser's name, address, and trade name (if any) under which proposed purchaser is doing business; (6) If a corporation, provide state and date of incorporation, and name and address of— (i) Each holder of 25 percent or more of the corporate stock; (ii) Each subsidiary; and (iii) Each company under common control with proposed purchaser; (7) If a partnership, provide— (i) Name and address of each partner; and (ii) Other business connections of each partner; (8) Nature of proposed purchaser's business (indicate whether its scope is local, statewide, regional, or national); (9) Estimated dollar volume of sales of proposed purchaser (as of latest calendar or fiscal year); (10) Estimated net worth of proposed purchaser; and (11) Intended use of property. (b) Do not dispose of property until the Attorney General determines whether the proposed disposal action would tend to create or maintain a situation inconsistent with the antitrust laws. (c) If the Attorney General advises that the proposed disposition is inconsistent with the antitrust laws, do not continue with the proposed disposition. (d) Under non-competitive sales, the prospective purchaser shall be informed that final consummation of the sale is subject to determination by the Attorney General. (e) Under competitive or non-competitive sales, the purchaser is required to provide the information required in paragraph (a) of this subsection. [56 FR 36448, July 31, 1991, as amended at 57 FR 42633, Sept. 15, 1992; 57 FR 53601, Nov. 12, 1992] Sale by formal invitation shall include, as a minimum, the terms and conditions in this section. The Bidder is invited to inspect the property prior to submitting a bid. Property will be available for inspection at the places and times specified in the Invitation. Failure to inspect property does not constitute grounds for the withdrawal of a bid after opening. (a) Unless otherwise specifically provided in the Invitation, all property is offered for sale “as is” and “where is.” If the Invitation provides that the Contractor will load, then “where is” means f.o.b. conveyance at the point specified in the Invitation. (b) The description is based on the best available information. However, the Contractor makes no warranty, express or implied, as to quantity, kind, character, quality, weight, size, or description of the property or its fitness for any use or purpose. (c) Except as provided in Conditions 245.7306–8, Variations in Quantity or Weight, and 245.7306–10, Risk of Loss, no request for adjustment in price or for rescission of the sale will be considered. This is not a sale by sample. (a) Bidder agrees that this bid is firm and irrevocable within the acceptance period specified in the Invitation (or, if not specified, not less than ten or more than 60 days). (b) The right is reserved to reject any or all bids, to waive any technical defects in bids, and, unless otherwise specified in the offering or by the Bidder, to accept any one item or group of items in the bid. Unless the invitation provides otherwise, bids— (1) May be on any or all items; (2) Must be submitted on the unit basis specified for that item; (3) Must cover the total number of units designated for that item; and (4) Unit prices govern. (a) Purchaser agrees to pay the full purchase price for awarded property at the prices quoted in the bid. Unless an adjustment is required pursuant to Condition 245.7306–8, Variations in Quantity or Weight, payment must be made within the time specified for removal and prior to delivery of any of the property. In the event that any adjustment is made, payment must be made immediately after such adjustment. (b) The full purchase price, or balance if a bid deposit was required, shall be paid to the Contractor in cash or by certified check, cashier's check, traveler's check, bank draft, or postal or express money order. The Contractor is not required to extend credit to any purchaser. (c) The Contractor reserves the right to apply any bid deposits made under this Invitation by a bidder against any amounts due under a contract awarded by the Contractor under this Invitation. If the total sum due to the contractor is less than the amount deposited with the bid, the difference shall be promptly refunded. Deposits accompanying bids which are not accepted shall be promptly returned. (a) Unless otherwise specified in the Invitation, title to property sold under this Invitation shall vest in the Purchaser when full payment is made. If the Invitation provides for loading by the Contractor, title shall not vest until payment and loading are completed. (b) A Standard Form 97, Certificate of Release of a Motor Vehicle, (or a State certificate of title) shall be furnished for motor vehicles and motor-propelled or motor-drawn equipment requiring licensing. (a) Unless otherwise specified in the Invitation, the Purchaser shall be entitled to obtain the property upon vesting of title in the Purchaser. Delivery shall be made at the designated location, and removal will be at the Purchaser's expense within the time frame specified in the Invitation or any additional time allowed by the Contractor. (b) The Purchaser shall reimburse the Contractor for any damage to the Contractor's property caused by Purchaser's removal operations. If additional time is required to remove the property, the Contractor, without limiting any other rights, may require the Purchaser to pay reasonable storage charges. If the successful Bidder fails to make full payment, remove property by the specified date, or comply with any other terms and conditions of sale, the Contractor reserves the right to sell or otherwise dispose of any or all such property and to charge losses and incidental expenses to the defaulting Bidder. Bid deposits received (if required in the Invitation) shall be applied against such losses and expenses. When property is sold on a “unit price” basis, the Contractor reserves the right to vary by up to 15 percent the quantity or weight listed in the Invitation and the Purchaser agrees to accept delivery of any quantity or weight within these limits. The purchase price shall be adjusted in accordance with the unit price and on the basis of the quantity or weight delivered. (a) When weighing is necessary to determine the exact purchase price, the Purchaser shall arrange for and pay all weighing expenses. When removal is by truck, weighing shall be subject to supervision and accomplished on— (1) Contractor scales; (2) Certified scales; or (3) Other scales acceptable to both parties. (b) When removal is by rail, weighing shall be on railroad scales or by other means acceptable to the railroad for freight purposes. The Purchaser shall pay switching charges. The Contractor is responsible for reasonable care and protection of the property until the date specified for removal. All risk of loss, damage, or destruction from any cause whatsoever shall be borne by the Purchaser after passage of title. Contractor and Government liability, when liability has been established, shall not exceed the refund of any portion of the purchase price already received by the Contractor. Any oral statement by the Contractor changing or supplementing the contract or any condition thereof is unauthorized. The Bidder shall certify that the Bidder is not— (a) A civilian employee of the Department of Defense or the United States Coast Guard whose duties include any functional or supervisory responsibility for disposal of contractor inventory; (b) A member of the United States Armed Forces, including the Coast Guard, whose duties include any functional or supervisory responsibility for disposal of contractor inventory; (c) An agent, employee or immediate member of the household of personnel in paragraphs (a) and (b). The Purchaser or Bidder agrees to save the Contractor and Government harmless from any and all claims, demands, actions, debts, liabilities, judgments, costs, and attorney's fees arising out of, claimed on account of, or in any manner predicated upon loss of or damage to property of, and injuries to or the death of any and all persons whatsoever, in any manner caused or contributed to by the Purchaser or Bidder, their agents, servants or employees, while in, upon, or about the sale site on which the property sold or offered for sale is located, or while going to or departing from such areas; and to save the Contractor and Government harmless from and on account of damages of any kind which the Contractor may suffer as the result of the acts of any of the Purchaser's agents, servants, or employees while in or about the said sites. When necessary, include the special conditions of this section in formal invitations. When demilitarization of property is required, whether on or off contractor or Government premises, the invitation must include the following clause:
(a) Demilitarization. Item(s) ____ require demilitarization by the Purchaser in the manner and to the degree set forth below: (1) For property located in the United States insert item number(s) and specific demilitarization requirements for item(s) shown in Attachment 1, Part 2 of Defense, Demilitarization Manual; (2) For property located outside the United States, insert item number(s) and specific demilitarization requirements for item(s) shown in Attachment 1, Part 3 of DoD 4160.21–M–1, Defense Demilitarization Manual. (b) Demilitarization on Government Premises. Property requiring demilitarization shall not be removed, and title shall not pass to the Purchaser, until demilitarization has been completed and approved by an authorized Contractor and Government representative. Demilitarization will be accomplished as specified in the contract. Component parts vital to the military or lethal purpose of the property shall be rendered unusable. The Purchaser agrees to assume all cost incident to the demilitarization and to restore the working area to its present condition after removing the demilitarized property. (c) Demilitarization on Non-Government Premises. Property requiring demilitarization shall be demilitarized by the Purchaser under supervision of qualified Department of Defense personnel. Title shall not pass to the Purchaser until demilitarization has been completed by the Purchaser and approved by an authorized Contractor and Government representative. Demilitarization will be accomplished as specified in the contract. Component parts vital to the military or lethal purpose of the property shall be rendered unusable. The Purchaser agrees to assume all costs incident to the demilitarization. (d) Failure to Demilitarize. If the Purchaser fails to demilitarize the property as specified in the contract, the Contractor may, upon giving ten days written notice from date of mailing to the Purchaser— (1) Repossess, demilitarize, and return the property to the Purchaser. The Purchaser hereby agrees to pay to the Contractor, prior to the return of the property, all costs incurred by the Contractor in repossessing, demilitarizing, and returning the property to the Purchaser. (2) Repossess, demilitarize, and resell the property, and charge the defaulting Purchaser will all excess costs incurred by the Contractor. The Contractor shall deduct these costs from the purchase price and refund the balance of the purchase price, if any, to the Purchaser. In the event the excess costs exceed the purchase price, the defaulting Purchaser hereby agrees to pay these excess costs to the Contractor. (3) Repossess and resell the property under similar terms and conditions. In the event this option is exercised, the Contractor shall charge the defaulting Purchaser with all excess costs incurred by the Contractor. The Contractor shall deduct these excess costs from the original purchase price and refund the balance of the purchase price, if any, to the defaulting Purchaser. Should the excess costs to the Contractor exceed the purchase price, the defaulting Purchaser hereby agrees to pay these excess costs to the Contractor. Performance bonds are required when work, other than loading, is to be performed by the purchaser and a bond is considered necessary to ensure performance. Generally, performance bonds shall be 100 percent of the estimated cost of the work to be performed. If a 100 percent performance bond would be disadvantageous to the Contractor or to the Government, the amount may be reduced to not less than 50 percent of the estimated cost of the work. Include the following condition when performance bonds are required:
Performance Bond Within ten days after notice of award, the Purchaser shall furnish a performance bond in the sum of $____ to cover the Purchaser's obligations. Such bond shall remain in full force and effect during the term of the contract and any extensions as may be agreed upon. The Purchaser shall not be permitted to begin performance until the bond has been received. When the work to be performed by the purchaser warrants, use the following:
Liability and Insurance The Purchaser shall at the Purchaser's own expense purchase and maintain during the term of the contract insurance as follows: (a) Standard workers' compensation and employer's liability insurance required under State and Federal statutes. However, the Contractor may waive this requirement upon receipt of satisfactory evidence that the Purchaser is qualified as a self-insurer under applicable provisions of law. (b) Bodily injury liability insurance in an amount not less than $300,000 for any one occurrence; and (c) Property damage liability insurance. The following warning shall be included when it cannot be certified that the property is completely harmless:
Dangerous Property Purchasers are warned that the property purchased may contain items of an explosive, toxic, or inflammable nature, notwithstanding reasonable care exercised by the Contractor to render the property harmless. The Contractor and the Government assume no liability for damage to the property of the Purchaser, or for personal injuries or disabilities to the Purchaser or the Purchaser's employees, or to any other person, arising from or incident to the purchase of the property, or its use or disposition by the Purchaser. The Purchaser shall save the Contractor and the Government harmless from any and all such claims. The sale of controlled substances, e.g., narcotics, stimulants, depressants, or hallucinogenic drugs, shall be subject to the following special conditions: (a) Controlled Substances. Bids will be rejected unless the Bidder submits the following certification with its bid:
The undersigned represents and warrants that it is registered under The Comprehensive Drug Abuse Prevention and Control Act of 1970, and is authorized under the law and by the Attorney General, U.S. Department of Justice (Bureau of Narcotics and Dangerous Drugs) to buy controlled substances as a medical practitioner, dealer or manufacturer of controlled substances. (b) Narcotic Drugs and Chemicals. Bids will be rejected unless the Bidder submits the following certification with its bid:
The undersigned represents and warrants that it is registered under Federal narcotics laws and is authorized by law and by the Bureau of Narcotics, United States Treasury Department, as a manufacturer of narcotics. The following shall be used whenever the property offered for sale is capable of emitting ionized radiation:
Radioactive Material Purchasers are warned that the property may be capable of emitting ionized radiation. The Contractor and the Government assume no liability for damage to the property of the Purchaser, or for personal injuries or disabilities to the Purchaser or the Purchaser's employees, or to any other person arising from or incident to the purchase of the property or its use or disposition by the Purchaser. The Purchaser shall hold the Contractor and the Government harmless from all such claims. The Purchase should warn possessors or users of the property that it may be capable of emitting ionized radiation. The following condition shall be used whenever property, other than production scrap, is offered for sale as scrap:
Scrap Warranty The Purchaser represents and warrants that the property will be used only as scrap, and will not be resold until— (a) Scrapping has been accomplished; or (b) The Purchaser obtains an identical warranty from any subsequent purchaser. When property with an acquisition cost of $3 million or more is to be sold, include the following in the invitation:
Antitrust When the property offered for sale has an acquisition cost of $3 million or more, or consists of patents, processes, techniques, or inventions, irrespective of cost, the successful Bidder shall be required to furnish additional information and shall allow up to 60 days for acceptance of its bid. Award shall be made only upon advice from the Department of Justice that the proposed sale would not create or maintain a situation inconsistent with the antitrust laws. The following special conditions of sale may be added at the option of the contractor: For purchases of property subject to a state sales or use tax, a special condition of sale may stipulate that the Purchaser shall pay and the Contractor shall collect the amount of the tax, which shall be itemized separately on the billing document. Other special conditions considered necessary by the Contractor are subject to the prior approval of the plant clearance officer. Approval will normally be granted provided the prescribed conditions of sale are not altered or affected and the interest of the Government is not adversely affected.
Title 48: Federal Acquisition Regulations System
PART 245—GOVERNMENT PROPERTY
Section Contents
245.104 Review and correction of contractor's property control systems.
245.301 Definitions.
245.302 Providing facilities.
245.302-1 Policy.
245.302-2 Facilities contracts.
245.302-7 Optional property-related clauses for facilities contracts.
245.303 Providing material.
245.303-2 Procedures.
245.307 Providing special test equipment.
245.307-2 Acquiring special test equipment.
245.310 Providing agency-peculiar property.
245.310-70 Contract clause.
245.401 Policy.
245.403 Rental—Use and charges clause.
245.405 Contracts with foreign governments or international organizations.
245.407 Non-Government use of plant equipment.
245.505 Records and reports of Government property.
245.505-3 Records of material.
245.505-5 Records of plant equipment.
245.505-6 Special reports of plant equipment.
245.505-14 Reports of Government property.
245.601 Definitions.
245.603 Disposal methods.
245.603-70 Contractor performance of plant clearance duties.
245.603-71 Disposal of contractor inventory for NATO cooperative projects.
245.604 Restrictions on purchase or retention of contractor inventory.
245.606 Inventory schedules.
245.606-3 Acceptance.
245.606-5 Instructions for preparing and submitting schedules of contractor inventory.
245.606-70 Instructions for completing DD Form 1342, DoD Property Record.
245.607 Scrap.
245.607-1 General.
245.607-2 Recovering precious metals.
245.607-70 Scrap warranty.
245.608 Screening of contractor inventory.
245.608-1 General.
245.608-2 Standard screening.
245.608-5 Special items screening.
245.608-7 Reimbursement of cost for transfer of contractor inventory.
245.608-70 Contractor inventory redistribution system (CIRS).
245.608-71 Screening industrial plant equipment.
245.608-72 Screening excess automatic data processing equipment (ADPE).
245.609 Donations.
245.610 Sale of surplus contractor inventory.
245.610-1 Responsibility.
245.610-3 Proceeds of sale.
245.610-4 Contractor inventory in foreign countries.
245.612 Removal and storage.
245.612-3 Special storage at the Government's expense.
245.613 Property disposal determinations.
245.7001 Selection, appointment, and termination.
245.7002 Duties and responsibilities of plant clearance officers.
245.7101 Forms.
245.7101-1 Standard Form 97, Certificate of Release of a Motor Vehicle (Agency Record Copy).
245.7101-2 DD Form 1149, Requisition and Invoice Shipping Document.
245.7101-3 DD Form 1348–1, DoD Single Line Item Release/Receipt Document.
245.7101-4 DD Form 1640, Request for Plant Clearance.
245.7201 Performing inventory verification and determination of allocability.
245.7202 Establishing a plant clearance case.
245.7203 Assigning plant clearance case numbers.
245.7204 Preparing inventory disposal report.
245.7205 Reporting excess and surplus contractor inventory.
245.7206 Transmitting DD Form 1342, DoD Property Record.
245.7301 Policy.
245.7302 Competitive sales.
245.7302-1 Property descriptions.
245.7302-2 Lotting.
245.7302-3 Alternate bids.
245.7302-4 Basis for sale.
245.7302-5 Mailing lists.
245.7303 Formal bid procedures.
245.7304 Informal bid procedures.
245.7305 Sale approval and award.
245.7306 Sales services.
245.7307 Non-competitive sales.
245.7307-1 General.
245.7307-2 Justification.
245.7308 Antitrust notification.
245.7309 Mandatory terms and conditions—formal invitations.
245.7309-1 Inspection.
245.7309-2 Condition and location of property.
245.7309-3 Consideration of bids.
245.7309-4 Payment.
245.7309-5 Title.
245.7309-6 Delivery and removal of property.
245.7309-7 Default.
245.7309-8 Variations in quantity or weight.
245.7309-9 Weighing.
245.7309-10 Risk of loss.
245.7309-11 Liability.
245.7309-12 Oral statements.
245.7309-13 Eligibility of bidders.
245.7309-14 Claims liability.
245.7310 Special term and conditions.
245.7310-1 Demilitarization.
245.7310-2 Performance bond.
245.7310-3 Liability and insurance.
245.7310-4 Dangerous property.
245.7310-5 Controlled substances.
245.7310-6 Radioactive material.
245.7310-7 Scrap warranty.
245.7310-8 Antitrust clearance.
245.7311 Optional conditions.
245.7311-1 Sales and use tax liability.
245.7311-2 Safety, security, and fire regulations.
245.7311-3 Bid deposits.
245.7311-4 Other special conditions.
Subpart 245.1—General
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245.104 Review and correction of contractor's property control systems.
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Subpart 245.3—Providing Government Property to Contractors
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245.301 Definitions.
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245.302 Providing facilities.
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245.302-1 Policy.
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245.302-2 Facilities contracts.
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245.302-7 Optional property-related clauses for facilities contracts.
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245.303 Providing material.
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245.303-2 Procedures.
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245.307 Providing special test equipment.
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245.307-2 Acquiring special test equipment.
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245.310 Providing agency-peculiar property.
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245.310-70 Contract clause.
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Subpart 245.4—Use and Rental of Government Property
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245.401 Policy.
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245.403 Rental—Use and charges clause.
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245.405 Contracts with foreign governments or international organizations.
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245.407 Non-Government use of plant equipment.
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Subpart 245.5—Management of Government Property in the Possession of Contractors
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245.505 Records and reports of Government property.
top
245.505-3 Records of material.
top
245.505-5 Records of plant equipment.
top
245.505-6 Special reports of plant equipment.
top
245.505-14 Reports of Government property.
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Subpart 245.6—Reporting, Redistribution, and Disposal of Contractor Inventory
top
245.601 Definitions.
top
245.603 Disposal methods.
top
245.603-70 Contractor performance of plant clearance duties.
top
245.603-71 Disposal of contractor inventory for NATO cooperative projects.
top
245.604 Restrictions on purchase or retention of contractor inventory.
top
245.606 Inventory schedules.
top
245.606-3 Acceptance.
top
245.606-5 Instructions for preparing and submitting schedules of contractor inventory.
top
245.606-70 Instructions for completing DD Form 1342, DoD Property Record.
top
245.607 Scrap.
top
245.607-1 General.
top
245.607-2 Recovering precious metals.
top
245.607-70 Scrap warranty.
top
245.608 Screening of contractor inventory.
top
245.608-1 General.
top
245.608-2 Standard screening.
top
245.608-5 Special items screening.
top
245.608-7 Reimbursement of cost for transfer of contractor inventory.
top
245.608-70 Contractor inventory redistribution system (CIRS).
top
245.608-71 Screening industrial plant equipment.
top
245.608-72 Screening excess automatic data processing equipment (ADPE).
top
245.609 Donations.
top
245.610 Sale of surplus contractor inventory.
top
245.610-1 Responsibility.
top
245.610-3 Proceeds of sale.
top
245.610-4 Contractor inventory in foreign countries.
top
245.612 Removal and storage.
top
245.612-3 Special storage at the Government's expense.
top
245.613 Property disposal determinations.
top
Subpart 245.70—Appointment of Property Administrators and Plant Clearance Officers
top
245.7001 Selection, appointment, and termination.
top
245.7002 Duties and responsibilities of plant clearance officers.
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Subpart 245.71—Plant Clearance Forms
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245.7101 Forms.
top
245.7101-1 Standard Form 97, Certificate of Release of a Motor Vehicle (Agency Record Copy).
top
245.7101-2 DD Form 1149, Requisition and Invoice Shipping Document.
top
245.7101-3 DD Form 1348–1, DoD Single Line Item Release/Receipt Document.
top
245.7101-4 DD Form 1640, Request for Plant Clearance.
top
Subpart 245.72—Special Instructions
top
245.7201 Performing inventory verification and determination of allocability.
top
245.7202 Establishing a plant clearance case.
top
245.7203 Assigning plant clearance case numbers.
top
245.7204 Preparing inventory disposal report.
top
245.7205 Reporting excess and surplus contractor inventory.
top
245.7206 Transmitting DD Form 1342, DoD Property Record.
top
Subpart 245.73—Sale of Surplus Contractor Inventory
top
245.7301 Policy.
top
245.7302 Competitive sales.
top
245.7302-1 Property descriptions.
top
245.7302-2 Lotting.
top
245.7302-3 Alternate bids.
top
245.7302-4 Basis for sale.
top
245.7302-5 Mailing lists.
top
245.7303 Formal bid procedures.
top
245.7304 Informal bid procedures.
top
245.7305 Sale approval and award.
top
245.7306 Sales services.
top
245.7307 Non-competitive sales.
top
245.7307-1 General.
top
245.7307-2 Justification.
top
245.7308 Antitrust notification.
top
245.7309 Mandatory terms and conditions—formal invitations.
top
245.7309-1 Inspection.
top
245.7309-2 Condition and location of property.
top
245.7309-3 Consideration of bids.
top
245.7309-4 Payment.
top
245.7309-5 Title.
top
245.7309-6 Delivery and removal of property.
top
245.7309-7 Default.
top
245.7309-8 Variations in quantity or weight.
top
245.7309-9 Weighing.
top
245.7309-10 Risk of loss.
top
245.7309-11 Liability.
top
245.7309-12 Oral statements.
top
245.7309-13 Eligibility of bidders.
top
245.7309-14 Claims liability.
top
245.7310 Special term and conditions.
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245.7310-1 Demilitarization.
top
245.7310-2 Performance bond.
top
245.7310-3 Liability and insurance.
top
245.7310-4 Dangerous property.
top
245.7310-5 Controlled substances.
top
245.7310-6 Radioactive material.
top
245.7310-7 Scrap warranty.
top
245.7310-8 Antitrust clearance.
top
245.7311 Optional conditions.
top
245.7311-1 Sales and use tax liability.
top
245.7311-2 Safety, security, and fire regulations.
top
245.7311-3 Bid deposits.
top
245.7311-4 Other special conditions.
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