(i) the contract under which such property is provided contains a provi-
sion for reimbursing the Government for the fair value of the proper-
ty at the completion or termination of the contract or within a
reasonable time thereafter (for example, in appropriate cases, such a
provision may require the contractor to purchase the property at a
value to be determined by appraisal, or at a price equal to its acquisi-
tion cost less depreciation at a specified rate considering its esti-
mated useful life, or may require the contractor to reimburse the
Government for its scrap or salvage value if the Head of a Procuring
Activity determines that its estimated useful life will not extend
beyond the expiration of the facilities contract or the completion of
the work for which the property was provided);

(ii) the Government has an option to acquire the underlying land; or
(iii) the contract under which such property is provided contains an al-
ternate provision that the Secretary considers to be adequate to pro-
tect the interests of the Government therein (the authority of the
Secretary under this subparagraph (iii) may not be delegated).

(b) Property Subject to Patent or Other Proprietary Rights. If patent or other proprietary rights of a contractor may restrict the disposal of Government production and research property, the condition in either (a)(i) or (a)(iii) above shall be satisfied before such property is provided.

Is".

13-308 Offer To Furnish Government Production and Research Property "As

(a) Government production and research property may be offered on an "as is" basis in any solicitation for fixed-price type contracts, whether such property is in storage or in the possession of a contractor. In the latter event, the offer will be subject to the policy stated in 13-304(a)(i) regarding the relative priorities of the work involved.

(b) Government production and research property may be offered on an "as is" basis for the performance of fixed-price type contracts only if it can be inspected by bidders or proposers prior to the submission of their offers. In such cases, the solicitation shall include the clause set forth in 7-104.24(e) and shall state:

(i) the availability and location of the property, and the conditions under which it may be inspected;

(ii) that the property will be offered in its current condition, f.o.b. present location;

(iii) that bidders or proposers must satisfy themselves that the property is suitable for their use;

(iv) that any costs of transporting, installing, modifying, repairing, or otherwise making the property suitable for use shall be borne by the successful bidder or proposer;

(v) that evaluations will be made to eliminate any competitive advantage from the use of the property (see Part 5); and

(vi) the bidders or proposers to whom the property is offered, if it is not to be offered to all.

(c) If, in accordance with the policy stated in 13-402 and 13-403, the successful bidder or proposer is authorized to use property furnished on an "as is" basis, the Government shall furnish the property in its current condition, f.o.b. present location. If a facilities contract is used to furnish Government production and research property offered on an "as is" basis, the Schedule shall state that the contractor shall not be reimbursed thereunder for transporting, installing, modifying, repairing, or otherwise making the property ready for use.

13-309 Changing Government Production and Research Property To Be Provided. The amount of Government production and research property specified under a contract to be provided may be increased by a bilateral modification of the contract. Such increases shall be made only when approved in accordance with the policies prescribed in this Part 3 and when the Government receives adequate consideration therefor. Unilateral decreases in or substitutions for the Government production and research property specified under a contract to be provided by the Government may be ordered by the contracting officer, subject to the equitable adjustment of the contract, in accordance with paragraph (b) of the appropriate Government Property clause referenced in Part 7.

13-310 Limited Offers. If it is not feasible to make Government production and research property available to all bidders or proposers, solicitations offering to furnish such property under this Part may limit the offer accordingly.

13-311 Reserved.

13-312 Items To Be Reported To and Screened by Defense Industrial Plant Equipment Center (DIPEC). The items to be reported to and screened by the Defense Industrial Plant Equipment Center in accordance with B-306.1, C-306.1, 13-301(g), 13-306.5 and 24-205.3(a) are listed in the following Joint DoD Handbooks.