§ 112. — Removal and storage of materials.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 41USC112]
TITLE 41--PUBLIC CONTRACTS
CHAPTER 2--TERMINATION OF WAR CONTRACTS
Sec. 112. Removal and storage of materials
(a) Termination inventory
It is the policy of the Government, upon the termination of any war
contract, to assure the expeditious removal from the plant of the war
contractor of the termination inventory not to be retained or sold by
the war contractor.
(b) Statement on material of inventory
Any war contractor may submit to the contracting agency concerned or
to any other Government agency designated by the Administrator of
General Services, one or more statements showing the materials which
such war contractor claims to be termination inventory under one or more
war contracts and desires to have removed by the Government. Such
statements shall be prepared in such form and detail, shall be submitted
in such manner, through the prime contractor or otherwise, and shall be
supported by such certificates or other data, as may be prescribed under
this chapter.
(c) Removal and storage by Government agency
Within sixty days after the submission of any such statement by a
war contractor, or such shorter period as may be prescribed under this
chapter, or within such longer period as the war contractor may agree,
the Government agency concerned (1) shall arrange, upon such terms and
conditions as may be agreed, for the storage by the war contractor on
his own premises or elsewhere of all such claimed termination inventory
which the war contractor does not retain or dispose of, except any part
which may be determined not to be allocable to the terminated war
contract or contracts, or (2) shall remove from the plant or plants of
the war contractor all of such claimed termination inventory not
retained, disposed of, or stored by the war contractor or determined not
to be allocable to the terminated war contract or contracts.
(d) Removal and storage by war contractor
Upon the failure of the Government so to arrange for storage by the
war contractor or to remove any termination inventory within the period
specified under subsection (c) of this section, the war contractor,
subject to regulations prescribed under this chapter, may remove some or
all of such termination inventory from his plant or plants and may store
it on his own premises or elsewhere for the account and at the risk and
expense of the Government, using reasonable care for its transportation
and preservation. If any war contractor intends so to remove any claimed
termination inventory, he shall deliver to the Government agency
concerned written notice of the date fixed for removal and a statement
showing the quantities and condition of the materials so to be removed,
certified on behalf of the war contractor to have been prepared in
accordance with a concurrent physical inventory of such materials. Such
notice and statement shall be delivered at least twenty days in advance
of the date fixed for removal and may be delivered before or after the
expiration of the period specified under subsection (c) of this section.
If the Government agency fails to check such materials, at or before the
time of their removal by the war contractor, a certificate of the war
contractor specifying the materials shown on such statement which were
so removed, and filed with the Government agency concerned within thirty
days after the date fixed for removal, shall constitute prima facie
evidence against the United States as to the quantities and condition of
the materials so removed, and the fact of their removal.
(e) Acquisition by Government agency of inventory material; liability
Notwithstanding any other provisions of law, but subject to
subsection (h) of this section, the contracting agency concerned or the
Administrator of General Services, or any Government agency designated
by him, on behalf of the United States, may, by the exercise of any
contract rights or otherwise, acquire and take possession of any
termination inventory of any war contractor, and any materials removed
by the Government or stored for its account under subsections (c) and
(d) of this section, whether or not such materials are finally
determined not to constitute termination inventory. With respect to any
such materials, the Government shall be liable to any war contractor
concerned only for their return to such war contractor or for their
disposal value at the time of their removal or for the proceeds realized
by the Government from their disposal, at the election of the Government
agency concerned, unless the Government agency and the war contractor
agree or have agreed on a different basis. Any amount so paid or layable
to a war contractor for materials allocable to a terminated war contract
shall be credited against the termination claim under such contract but
shall not otherwise affect the amount due on the claim, unless the
Government agency concerned and the war contractor agree or have agreed
otherwise. Any materials to which the Administrator of General Services
takes title under this section shall be delivered for disposal to any
appropriate Government agency authorized to make such disposal.
(f) Postponement or delay of termination settlement
No contracting agency shall postpone or delay any termination
settlement beyond the period specified in subsection (c) of this section
for the purpose of awaiting disposal by the war contractor or the
Government of any termination inventory reported in accordance with
subsection (b) of this section.
(g) Government-owned machinery
Whenever any war contractor no longer requires, for the performance
of any war contract, any Government-owned machinery, tools, or equipment
installed in his plant for the performance of one or more war contracts,
the Government agency concerned, upon written demand by the war
contractor, and within sixty days after such demand or such other period
as may be prescribed under this chapter, and upon such conditions as may
be so prescribed, shall remove or provide for the removal of such
machinery, tools, or equipment from such plant, unless the Government
agency concerned and the war contractor, by facilities contract or
otherwise, have made or make other provisions for the retention,
storage, maintenance, or disposition of such machinery, tools or
equipment. The Government agency concerned may waive or release on
behalf of the United States any obligation of the war contractor with
respect to such machinery, tools, or equipment upon such terms and
conditions as the agency deems appropriate. Upon the failure of the
Government so to remove or provide for removal of any such machinery,
tools, or equipment, the war contractor, subject to regulations
prescribed under this chapter, may remove all or part of such machinery,
tools, or equipment from his plant and may store it on his own premises
or elsewhere, for the account and at the risk and expense of the
Government, using reasonable care for its transportation and
preservation.
(h) Limitation on Government acquisition of inventories
Nothing in this chapter shall limit or affect the authority of the
Department of the Army, Department of the Air Force, Navy Department, or
the Department of Transportation, respectively, to take over any
termination inventories and to retain them for their use for any purpose
or to dispose of such termination inventories for the purpose of war
production, or to authorize any war contractor to retain or dispose of
such termination inventories for the purpose of war production.
(i) Removal and storage by war contractor at own risk
Nothing in this section shall be construed to prevent the removal
and storage of any termination inventory by any war contractor, at his
own risk, at any time after termination of any war contract to which it
is allocable.
(July 1, 1944, ch. 358, Sec. 12, 58 Stat. 658; Ex. Ord. No. 9809,
Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,
Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; July 26, 1947,
ch. 343, title II, Secs. 205(a), 207(a), (f), 61 Stat. 501-503; June 30,
1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380; Pub. L. 97-31,
Sec. 12(18), Aug. 6, 1981, 95 Stat. 154.)
Amendments
1981--Subsec. (h). Pub. L. 97-31 substituted ``the Department of
Transportation'' for ``Maritime Commission''.
Change of Name
Department of the Air Force inserted under the authority of section
207(a), (f) of act July 26, 1947, ch. 343, title II, 61 Stat. 502, 503,
and Secretary of Defense Transfer Order No. 6, eff. Jan. 15, 1948.
Department of War designated Department of the Army and title of
Secretary of War changed to Secretary of the Army by section 205(a) of
such act July 26, 1947. Sections 205(a) and 207(a), (f) of act July 26,
1947, were repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A
Stat. 641. Section 1 of act Aug. 10, 1956, enacted ``Title 10, Armed
Forces'', which in sections 3010 to 3013 and 8010 to 8013 continued
Departments of the Army and Air Force under administrative supervision
of Secretary of the Army and Secretary of the Air Force, respectively.
Transfer of Functions
Functions of Secretary of the Treasury transferred to Administrator
of General Services by section 102(b) of act June 30, 1949, ch. 288, 63
Stat. 380, which was classified to section 752(b) of former Title 40,
Public Buildings, Property, and Works, and was repealed by Pub. L. 107-
217, Sec. 6(b), Aug. 21, 2002, 116 Stat. 1304.
``Secretary'' substituted for ``Director'' by section 8 of Ex. Ord.
No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in the
Appendix to Title 5, Government Organization and Employees.
Effective Date of Transfer of Functions
Transfer of functions by act June 30, 1949, effective July 1, 1949,
see section 605, formerly section 505, of act June 30, 1949, ch. 288, 63
Stat. 403; renumbered by act Sept. 5, 1950, ch. 849, Sec. 6(a), (b), 64
Stat. 583.
Application to Terminated War Contracts
For application of subsecs. (b) to (e) of this section to war
contracts terminated at or before July 21, 1944, see section 124 of this
title.
Section Referred to in Other Sections
This section is referred to in section 124 of this title.
