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facilities which have been agreed upon as those to be provided. Where rent-free use will not be authorized, the clause shall be modified to delete the reference to such use.

13.302-5 Contract Provisions Where Facilities Are Provided Under a Contract Other Than a Facilities Contract.

(a) Where Government-owned facilities are to be acquired or fabricated by a contractor under a contract other than a facilities contract, the following clause, with the Schedule terms called for therein, shall be included in the contract, in addition to the appropriate Government Property clause:

FACILITIES ACQUIRED OR FABRICATED (MAY 1965)

Subject to the approval of the Contracting Officer, the Contractor may acquire or fabricate the facilities listed in the Schedule of the contract. Costs incurred therefor will be allowable costs, provided that the Contractor shall have no obligation to acquire or fabricate facilities and the Government shall have no obligation to reimburse any amount for such facilities in excess of the total estimated facilities costs set forth in the Schedule, unless this contract is amended to increase such amount. The facilities acquired or fabricated shall be considered Government property and subject to the provisions of the Government Property clause of this contract.

(b) Where existing facilities are to be furnished under a contract containing the appropriate Government Property clause of Subpart 7 of this Part, no separate clause covering such facilities generally is necessary. The items of facilities will be listed or specified in the Schedule as Government-furnished property. However, if installation of such existing facilities to be furnished by the Government is to be performed by the contractor at Government expense, the contract Schedule shall so state and set forth the total estimated cost therefor.

13.303 Procedures for Providing Special Test Equipment.

13.303-1 Contract Provisions for Acquiring Special Test Equipment.

(a) In formally advertised procurements, each item or category if individual items are low in value, of special test equipment to be furnished by the Government or to be acquired or fabricated by the contractor shall be clearly identified in the invitation for bids.

(b) In negotiated procurements, if the special test equipment or components are known, the contract shall identify each item indicating whether it is to be (i) Government-furnished or (ii) acquired or fabricated by the contractor. Items costing less than $1,000 each may be shown in the aggregate by each category.

(c) In negotiated procurements, if the exact identification of special test equipment to be acquired or fabricated is unknown the contract shall contain the clause in 13.705.

13.303-2 Screening Existing Government-owned Special Test Equipment Costing $1,000 or More. In order to minimize the acquisition of new special test equipment or components thereof, the contracting officer shall utilize the NASA Equipment Visibility System (EVS) and DIPEC, when recommended by the EVS coordinator, to ascertain whether any Government-owned property can be furnished in accordance with the policy set forth in 13.203-1. To accomplish such screening, Department of Defense Industrial Plant Equipment Requisition (DD Form 1419) shall be submitted to the Equipment Visibility System (EVS) coordinator of the cognizant NASA installation in accordance with 13.308. Where special test equipment is to be acquired in the manner described in 13.303-1(b), the screening shall be accomplished before contract award. Where special test equipment is to be acquired in the manner described in 13.303-1(c), the contracting officer shall normally accomplish the screening and notify the contractor of the Government's election within the notice period provided in the Special Test Equipment clause in 13.705. Thereafter, the Government-owned items to be furnished shall be promptly shipped to the contractor and the contract shall be equitably adjusted pursuant to the Special Test Equipment clause. However, if the contracting officer determines that the savings anticipated from furnishing Government-owned items would be exceeded by costs that might be incurred as a result of delays or administrative actions, he may, except as to items identified in 13.312, waive the screening and shall immediately advise the contractor that the Government will not furnish the equipment.

13.303-3 Review and Approval Procedures for Contractor Acquired Special Test Equipment. The clause in paragraph 13.705 requires the contractor to prepare and submit to the contracting

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officer a notice of intent to acquire or fabricate items of special test equipment. Within thirty days from the date of receipt of the contractor's notice, the contracting officer shall:

(i) review proposed special test equipment items as to their necessity and classification as "Special;"

(ii) screen requirements with the installation Equipment Visibility System (EVS) in accordance with 13.303-2;

(iii) resolve any funding problems; and

(iv) notify the contractor of the Government's approval or disapproval of the proposed acquisition or fabrication, or that the equipment will be furnished by the Government.

13.304 Procedures for Providing Special Tooling.

13.304–1 Furnishing Existing Government-owned Special Tooling.

(a) The furnishing or offer to furnish existing special tooling to which the Government has title, or has the right to acquire title pursuant to the Special Tooling clause in 13.704, shall be consistent with policy set forth in 13.204.

(b) Contracts under which special tooling is furnished shall contain a description thereof, the terms and conditions applicable to its shipment, and the cost of adapting and installing it. 13.304-2 Application of Policy for Acquisition of Special Tooling. In procurements where there is adequate price competition, the Government usually relies on the competition to obtain a fair charge for the amortization of special tooling provided by the contractor. Furthermore, in a competitive area, ownership of special tooling by one contractor is not likely to prevent others from competing in follow-on procurements. Thus, it is not generally appropriate for the Government to acquire special tooling or rights thereto in competitive procurements. However, where there is not adequate price competition, the Government typically pays the full cost of the special tooling regardless of who owns or has rights to it, and therefore it is usually appropriate for the Government to acquire special tooling or rights thereto. Moreover, Government ownership may make it easier to create competition in follow-on procurements. Where a decision is made not to take title to special tooling in a procurement without price competition, consideration shall be given to the need for special contract provisions covering contractor plans for future recovery of any initial special tooling costs in follow-on competitive procurements (see 3.813).. 13.304-3 Fixed-Price Contracts.

(a) General. In fixed-price contracts where a certificate of current cost or pricing data is not required, special tooling or rights thereto shall not be acquired unless the contracting officer determines such acquisition to be advantageous to the Government, considering the factors set forth in (b) below.

(b) Criteria for Acquisition. In deciding whether to acquire special tooling or rights thereto, or to exercise the Government's acquisition rights under contracts or subcontracts pursuant to the Special Tooling clause set forth in 13.704, the following factors shall be considered:

(i) the current or probable future need of the Government for the items involved and the estimated cost of reproducing them if not acquired;

(ii) their estimated residual value;

(ii) the administrative and other expense incident to reporting, record keeping, preparation, handling, transportation, and storage;

(iv) the effect on pricing future contracts;

(v) the feasibility and probable cost of making the items available to other bidders or offerors in the event of future procurement;

(vi) the amount offered by the contractor for the right to retain the items; and

(vii) the contribution Government acquisition makes to future competition.

(c) Criteria for Waiving Special Tooling Provisions in Subcontracts. In determining whether rights to acquire special tooling from subcontractors are not of substantial interest to the Government so as to permit the omission of special tooling provisions from the affected subcontracts pursuant to paragraph (j) of the Special Tooling clause set forth in 13.704, the contracting officer shall consider the factors listed in (b) above. It is desirable that such determination be made before execution of the contract, to the extent practicable, in which case the price shall reflect the authorized omission of special tooling provisions in any affected subcontract. If this question is presented to the contracting officer after execution of the contract, he shall condition his determination upon securing the contractor's consent to an equitable reduction in the contract 13.304

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price to reflect any reduction in the price of the affected subcontracts resulting from the omission of such provisions.

(d) Procedures.

(1) If the contracting officer has decided not to acquire special tooling or rights thereto, he may include in the solicitation such information as he may have of current planning for future procurements of the item involved, consistent with security requirements. Offerors shall be advised in the solicitation that such statements are estimates and there is no assurance that any quantity will be procured.

(2) In formally advertised procurements, each item of special tooling to be acquired by the Government under the standards set forth above shall be clearly identified in the invitation for bids as a separate item, or by category if individual items are low in value, and the Special Tooling clause in 13.704 shall not be used.

(3) In negotiated procurements, each item of special tooling to be acquired under the standards set forth above shall be identified as a separate item in the solicitation and contract to the maximum extent practicable, or by category if individual items are low in value. If such identification is impracticable, title to special tooling may be obtained through use of the Special Tooling clause in 13.704. If the use of this clause will result in an undesirable acquisition of rights to some special tooling, the Schedule shall specify the special tooling not covered by the clause. (e) Protecting Government Interest in Contractor-owned Special Tooling. Where the Government does not acquire special tooling or the rights thereto pursuant to (d) above, but will pay for a substantial portion of the special tooling in the price paid for supplies or services, special provisions may be included in the Schedule of a contract to give recognition to the equitable interest of the Government in the special tooling, if such interest is significant. For example: (i) where there is a distinct possibility that the Government eventually may decide to acquire title to the special tooling, the contract may provide for an option in the Government to acquire the special tooling at a specified price or for an amount to be determined in accordance with specified standards (the criteria set forth in (b) above shall be considered in exercising such options); or

(ii) if the Government does not acquire or reserve the right to acquire title to the special tooling, the contract may provide for the contractor's future amortization of the special tooling under Government contracts.

13.304-4 Cost-Reimbursement Type Contracts. Title to special tooling under cost-reimbursement type contracts shall be acquired pursuant to the clauses set forth in 13.703 and 13.707.

13.305 Furnishing Materials.

(a) Material to be furnished by the Government shall be set forth in the solicitation in sufficient detail to permit evaluation by prospective contractors.

(b) Where material is to be furnished by the Government, the contract shall state whether the requisitioning documentation is to be prepared by the contractor or the procuring activity. When the responsibility is placed upon the contractor, such documentation shall be prepared in accordance with the FEDSTRIP Operating Guide FPMR 101-26.2.

(c) Contractors authorized to requisition material from Government sources must have an Activity Address Code. The procedures for obtaining the code are in NMI 4050.2D.

(d) For information concerning contractor authorization to use General Services Administration sources, see Part 5, Subpart 9.

13.305-1 Changing the Amount of Material To Be Furnished by the Government.

(a) At any time after a contract has been entered into, whether as a result of formal advertising or negotiation, the contract may be bilaterally modified to provide for the furnishing of Government material, or to increase the amount to be furnished, provided there is adequate consideration for such modification.

(b) When it is anticipated that substantial quantities of Government material will become available for the contract by transfer from another contract or otherwise, the contract may provide that a unilateral increase in the amount of material to be furnished by the Government may be ordered by the contracting officer, and that the contract shall be equitably adjusted therefor.

(c) Unilateral decreases in or substitutions for the material specified under a contract to be provided by the Government may be ordered by the contracting officer, subject to the equitable NASA PROCUREMENT REGULATION

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adjustment of the contract, in accordance with paragraph (b) of the appropriate Government property clause in Subpart 7.

13.306 Furnishing Space Property.

(a) Space property may be furnished to contractors when necessary for use as a standard or model, for testing the contractors' end item where suitable commercial equipment is not available, to establish equipment compatibility, or for such other similar reasons as the Procurement Officer or his designee determines to be in the best interest of the Government.

(b) Space property may be furnished to contractors under a facilities contract or under a supplies or services contract. Each contract under which such property is furnished shall provide that:

(i) each item of the property be identified by its NASA Identification Number and Government nomenclature;

(ii) the property be accounted for under that contract; and

(iii) upon its completion or termination, the contractor shall request and comply with disposition instructions from the contracting officer.

13.307 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 Subpart may limit the offer accordingly.

13.308 Procedures for the Acquisition of Inactive Equipment.

(a) Requests for Inactive Equipment. Requests for item(s) of equipment to be acquired by screening availability from NASA's EVS and DIPEC idle inventories shall be submitted on DD Form 1419 (DoD Industrial Plant Equipment Requisition) in an original and three (3) copies via the contracting officer to the installation's EVS coordinator at least thirty (30) days in advance of contractor's intention to acquire or fabricate such equipment for processing in accordance with the further procedures prescribed in Part 4, Section V of NASA Equipment Management Manual (NHB 4200.1B).

(b) Preparation of DD Form 1419. A separate DD Form 1419 will be completed for each item of equipment required, i.e., if sixteen (16) lathes of the same type and model are required, sixteen (16) DD Form 1419's will be completed in accordance with instructions of 13.601-3.

13.309 Requests by the Military Departments for NASA Equipment. Requests from the military departments for idle NASA industrial plant equipment received directly by NASA installations shall be referred to the EVS coordinator.

13.310 Procedures for Administering Approved Facilities Application. After negotiation of a facilities contract or amendment thereto providing for the furnishing of Government facilities, NASA Headquarters approval will be obtained pursuant to 13.202-2(d) and the administrative phase of the procurement will be treated as follows:

(a) The contracting officer or his authorized representative assigned to administer the facilities contract will determine necessity for the individual items listed on the approved application. The determination of necessity will be made on the basis of the installation technical office confirmation of requirements.

(b) The contracting officer will require, prior to acquisition, the screening of equipment which may be available from existing Government inventories and will request assistance of the Equipment Visibility System (EVS) coordinator in screening inactive and idle inventories. Allocation of such equipment will be requested by the contractor through and with the concurrence of the NASA contracting officer pursuant to 13.308. If screening of any item of idle Government production and research property on an approved application cannot be completed within 30 days the contracting officer or his representative may approve purchase of the item without further screening.

(c) Revisions to the approved application to conform to determination of necessity will be subject to the approval of the contracting officer. The determination of necessity will be made as expeditiously as possible and normally will be made on the basis of the contractor's statement that the justification as delineated in the approved application remains valid; the contracting officer may, however, request additional justification, if, in his judgment, such a request is justified. (d) Substitution of items for similar items listed on an approved application may be considered when necessitated by engineering changes, technological changes, or non-availability in reserve 13.306 CFR TITLE 41 CHAPTER 18

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inventories, and may be approved by the contracting officer or his authorized representative when the substituted item either:

(i) falls within the same schedule subcategory as the previously approved item;

(ii) is justified for the same intended function and remains within the estimated cost of the previously approved item; or

(iii) in cases of justified necessity, exceeds such amount provided that the approved dollar amount of the Appendix A schedule category is not exceeded.

Proposed substitutions not meeting the foregoing standard will be processed as facilities expansions in accordance with this paragraph 13.310.

13.311 Providing Government Property to On-site Contractors and Local Support Service Contractors. The clause set forth below shall be used when Government property is provided to onsite contractors. Requests for deviation (see 1.109) shall be coordinated with the Director of Supply and Equipment Management. The clause may also be used when Government property is provided to off-site local support service contractors. In any event, the concurrence of the installation supply and equipment management officer must be obtained and indicated in the procurement request. The nature and extent of such property shall be identified in the Schedule of the contract and the property made available to the contractor on a no-charge-for-use basis by the installation supply and equipment management officer. In the event that property is provided under this clause and also a “Government Property" clause, the property shall be clearly identified in separate schedules. Any maintenance considerations will be addressed elsewhere in the contract.

INSTALLATION PROVIDED GOVERNMENT PROPERTY (MARCH 1980)

(a) In performance of work under this contract, certain Government property identified in this contract shall be made available to the Contractor on a no-charge-for-use basis by the installation Supply and Equipment Management Officer. Such property shall be utilized in the performance of this contract at the installation administering this contract or at such other installation(s) or location(s) specified elsewhere in this contract. Under this clause, the Government retains accountability as well as title to the property and the Contractor assumes user responsibilities prescribed in installation property management directives.

(b) The official accountable record keeping and financial control and reporting of the property subject to this clause shall be retained by the Government and accomplished by the installation Supply and Equipment Management and Financial Management Officers. However, the Government will provide the Contractor a record of all items of property including copies of all transaction documents used to describe changes to this record. The Contractor shall maintain this record and transaction documentation in such a condition that at any stage of completion of work under this contract, the status of the property including location, utilization, consumption rate and identification may be readily ascertained. The Contractor shall also adhere to all other procedures (and sanctions related thereto) prescribed by the installation director which have been established for the management of installation property. The records and documentation shall be made available, upon request, to the installation Supply and Equipment Management Officer and other formally designated representative(s) of the Contracting Officer.

(c) In the event the Government fails to provide the Government property specified in this contract such as to adversely affect the Contractor's ability to perform hereunder, the Contracting Officer shall, upon timely written request made by the Contractor, make a determination of the effect occasioned the Contractor and shall equitably adjust the contract in accordance with the procedure provided in the clause of the General Provisions hereof entitled “Changes." (d) If Government property is also provided under a "Government Property" clause in this contract, such property shall be subject, in all respects, to that clause and to the controls set forth in Appendix B, NASA Procurement Regulation. However, the provisions of the "Government Property" clause and Appendix B to the NASA Procurement Regulation do not apply to property provided under this "Installation Provided Government Property" clause.

13.312 Items to be Screened.

(a) All centrally reportable equipment (see B.102-22) shall be reported to and screened by the cognizant installation Equipment Visibility System Data Center (EVSDC) in accordance with B.306-1, C.306-1, 13.202-3, 13.303-2 and 24.205-4.

(b) Centrally reportable equipment listed in the following Joint DoD Handbooks, if not available in the Equipment Visibility System (EVS), shall be referred by the cognizant installation EVS coordinator to the Defense Industrial Plant Equipment Center, Memphis, Tennessee, for screening.

NASA PROCUREMENT REGULATION