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Subpart 15-60.5—Competition Sec. 15-60.500 Scope of subpart. 15-60.501 General. 15-60.502 Solicitation documents. 15-60.503 Evaluation of bids and proposals.

Subpart 15-60.6—Administration of

Government Property 15-60.600 Scope of subpart. 15-60.601 General. 15-60.602 Property Administrator. 15-60.603 Insurance. 15-60.604 Risk of loss or damage liability.

AUTHORITY: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

SOURCE: 39 FR 4761, Feb. 7, 1974, unless otherwise noted.

Government or acquired by the Government under the terms of a contract. Government property includes both Government-furnished property and contractor-acquired property as defined below:

(a) Government-furnished property is property in the possession of, or acquired directly by, the Government and subsequently delivered or otherwise made available to the contractor; and

(b) Contractor-acquired property is property procured or otherwise made available by the contractor for performance of a contract, title to which is vested in the Government.

§ 15-60.000 Scope of part.

8 15-60.101-3 Provide. This part sets forth policy and pro Provide means to furnish Governcedures with respect to providing

ment-owned property or to allow a property for use by contractors in per

contractor to acquire property at Govformance of EPA contracts. This part

ernment expense. does not apply to the lease of property to contractors or to property to which $ 15-60.101-4 Nonseverable. the Government has acquired a lien or

Nonseverable, when related to Gov. title solely as a result of advance, progress, or partial payments.

ernment property, means that such

property cannot be removed after (39 FR 4761, Feb. 7, 1974, as amended at 42

erection or installation without subFR 33750, July 1, 1977)

stantial loss of value or damage there

to, or to the premises where installed. Subpart 15-60.1—General

8 15-60.101-5 Dollar value. 8 15-60.100 Scope of subpart.

This is the amount determined by This Subpart 15-60.1 contains (a)

the Government and recorded in in. definition of terms used throughout

ventory records as the price or cost of this Part 15-60 and (b) certain state

an item of Government-owned properments of general policy. 8 15-60.101 Definitions.

8 15-60.101-6 Procurement contract. As used in this subpart, the follow

Procurement contract means a Gov. ing terms have the meaning stated

ernment contract for the acquisition below. Additional definitions applica of property or services of any descripble to property administration are set tion; e.g., research and development, forth in EPA publication entitled construction, scientific, educational, Guide for Control of Government medical, etc. Property by Contractors."

8 15-60.101-7 Material. 8 15-60.101-1 Property.

Material means property which may Property includes all property, both be consumed or expended in the perreal and personal, severable and non- formance of a contract or which may severable, and expendable material be incorporated into or attached to an and nonexpendable equipment.

end item to be delivered under a con

tract. It includes, but is not limited to 8 15-60.101-2 Government property.

raw and processed material, parts, Government property means all components, assemblies, small tools property owned by or leased to the and supplies which may be consumed

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in normal use during performance of a (2) Include in any fixed-price subcontract.

contract meeting the criteria set forth

in & 15-60.102-1(a) a provision similar $ 15-60.101–8 Nonprofit organization. to that contained in FPR 1-7.303-7(b).

Nonprofit organization means any Contracting Officers shall, prior to apcorporation, foundation, trust, or insti

proving the inclusion of the provisions tution operated for scientific, educa referred to above in any subcontract, tional, or medical purposes, not orga balance the need for the protection nized for profit, no part of the net and care of Government property earnings of which inures to the benefit

against the cost thereof. A prime conof any private shareholder or individu tractor who provides Government al.

property to a subcontractor shall not

be relieved of any responsibility to the $ 15-60.102 Responsibility and liability for

Government that he may have under Government property.

the terms of his contract. $ 15-60.102-1 Prime contractors.

(39 FR 4761, Feb. 7, 1974, as amended at 42

FR 33750, July 1, 1977) Except for the conditions specified in paragraph (g) of the Government

$ 15-60.103 Use for or by contractors of Property clauses set out in FPR 1

test facilities owned and operated by 7.203-21(a), 1-7.303-7(a), 1-7.303-7(d),

the Government. and 1-7.402-25(b), it is EPA policy not to hold a contractor responsible for

The on-site use for or by contractors loss of or damage to Government

of existing Government-owned test property when such property is pro

facilities located at installations owned vided under:

and operated by the Government may (a) A negotiated, fixed-price type

be authorized in connection with the procurement contract for which the

performance of Government contracts price is not based on (1) adequate price

only when: competition, (2) established catalog or

(a) There is no commercial test capamarket prices of commercial items

bility adequate for the testing needs, sold in substantial quantities to the

or general public (see § 1-3.807-1(a)(2)),

(b) Substantial cost savings will or (3) prices set by law or regulation;

result from use of the Government

owned test facilities. (b) Cost-reimbursement type pro

Whenever any such use is authorized curement contracts.

the Contracting Officer shall insure (39 FR 4761, Feb. 7, 1974, as amended at 42

that adequate consideration compara

ble to commercial charges, if any, FR 33750, July 1, 1977)

flows to the Government. (See § 15§ 15-60.102–2 Subcontractors.

60.503 for policy regarding evaluation

of bids and competitive proposals.) (a) If Government property is provided to a subcontractor directly by the Government $ 15-60.102-1 shall

Subpart 15-60.2—Material apply. (b) If Government property is pro

8 15-60.200 Scope of subpart. vided to a subcontractor by a prime

This subpart prescribes policy and contractor, the latter shall be required procedure for furnishing material (see to hold the subcontractor liable for $ 15-60.101-7) to contractors for perany loss of or damage to such proper formance of EPA formally advertised ty; provided, however the prime con and negotiated contracts. tractor may, with the prior approval of the Contracting Officer:

8 15-60.201 Policy. (1) Include in any cost-reimburse- Contractors normally are expected ment type subcontract thereunder to furnish all material required for provisions similar to those contained performance of EPA contracts. Howevin paragraph (g) of the clause in FPR er, it may be in the Government's in1-7.203-2(a) or 1-7.402-25(b); and

terest to furnish such material when

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justified by reason of economy, to ex- Management Regulations, FPR Part pedite contract performance, to 1-8, and EPA publication entitled achieve standardization, or under “Guide for Control of Government other appropriate conditions.

Property by Contractors”.) § 15-60.202 Procedure.

Subpart 15-60.3—Providing (a) Solicitation documents shall de

Government Property to Contractors scribe material to be furnished by the Government, in detail sufficient for

8 15-60.300 Scope of subpart. evaluation by prospective contractors.

(b) Whenever material is to be fur This subpart enunciates policy to nished by the Government the con- guide the decision-making process tract shall specify whether the con when property (other than material) tracting activity or the contractor is to

is to be provided a contractor for perprepare requisitioning documents. If formance of an EPA contract and to the contractor is to be responsible for insure that such decisions are properly preparing requisitioning documents, documented. the EPA Property Administrator will instruct the contractor to prepare

8 15-60.301 Providing property. such documents in accordance with the Federal Standard Requisitioning

8 15-60.301-1 General. and Issue Procedure (FEDSTRIP) (a) Contractors are expected to prosystem, prescribed by Subpart 101-26.2 vide all resources necessary for perof the Federal Property Management formance of EPA contracts. Every Regulations. (See FPR Subpart 1-5.9 effort must be made to locate and for “Use of GSA Supply Services by select contractors that demonstrate a Contractors Performing Cost-Reim- willingness and ability to provide their bursement Type Contracts.)

own resources. However, during pro(c) The appropriate Government curement planning, solicitation of Property clause prescribed FPR Part prospective contractors, evaluation of 1-7 shall be incorporated into all con proposals, contract negotiations, or tracts which provide for Government

during postaward performance of the furnished material.

contract, EPA may determine that it is [39 FR 4761, Feb. 7, 1974, as amended at 42

in the Government’t interest to furFR 33750, July 1, 1977)

nish Government-owned property or

to allow the contractor to acquire $ 15-60.203 Contract changes.

property at Government expense. (a) Contracts may be modified:

(b) Providing property at Govern. (1) bilaterally to provide for Govern ment expense can create an expensive ment-furnished material when ade- and burdensome inventory that may quate consideration flows to the Gov have to be disposed of at a fraction of ernment;

its cost. EPA personnel must insure (2) unilaterally under the changes that (1) providing property is justified, clause to increase the amount of Gov (2) the Government receives adequate ernment-furnished material; and

consideration, and (3) one contractor (3) unilaterally to make substitu- or prospective contractor, does not retions or decreases in material to be ceive a competitive advantage over furnished by the Government, subject others. A decision to provide property to equitable adjustment of the con at Government expense must be suptract in accordance with the Govern ported by a comprehensive “determi. ment Property clause.

nation and findings.”

(c) Items of property to be furnished $ 15-60.204 Disposal.

by the Government or acquired by the Residual Government material (in contractor must be identified as specluding scrap and salvage) shall be dis- cifically as possible in the original conposed of in accordance with instruc- tract Schedule or in a Change Order tions of the EPA Property Administra- or Supplemental Agreement, as approtor and as directed by the Contracting priate. When acquisition of property Officer. (See FPMR, EPA Property at Government expense is authorized

in a contract Schedule, Change Order or Supplemental Agreement, purchase orders or subcontracts issued by the contractor for acquisition of individual items of property are subject to the requirements of the Subcontracts clause incorporated into the contract. Authorization to acquire property should not be construed as consent to place ment of a subcontract or vice-versa, unless so specified in the contract or in a written determination by the Contracting Officer.

& 15-60.301-2 Justification for providing

property. (a) The Contracting Officer shall not authorize a contractor to (1) acquire property at Government expense, (2) obtain Government-furnished property, or (3) use Government-owned property in his possession until the Chief Officer, at Division level or above, responsible for management of the program/project involved, submits a written justification of need to provide the property to the Contracting Officer. If the Contracting Officer concurs in the justification of need, he will prepare and sign a separate “determination and findings" which identifies the property to be provided and sets forth the facts and circumstances which support providing the property. The “determination and findings" shall be approved by the Chief Officer responsible for procurement at the contracting activity involved. A similar approved “determination and findings" is required when changes are made in the kind or amount of property provided or acquired. However, a separate “determination and findings" is not mandatory if the justification of need fully supports providing the property and contains the minimum information prescribed in $ 15-60.301-2(b). In such case concurrences by the Contracting Officer and Chief Officer responsible for procurement may be stated on the justification of need.

(b) As a minimum, the justification of need and/or “the determination and findings" must:

(1) Identify the specific program and project for which the property is required.

(2) Describe the kind, quantity, and estimated cost (including transportation and installation costs) of the individual item of property required to be furnished or acquired.

(3) Explain why the property is essential for contract performance.

(4) Explain why it is in the Govern. ment's interest to provide the property; why other alternatives (e.g., renting the property, use of subcontractors, modification of program/project requirements, procurement from another contractor, etc.); are impractical or uneconomical and why providing the requested property is likely to result in lower cost to the Government for products delivered or services rendered, when all costs are considered (e.g., purchase price of the property, transportation, modification, installation, maintenance, and administration costs by the contractor and the Government).

(5) Identify, if known, location of the contractor's facility at which the property will be used and the contractor's personnel assigned responsibility for acquisition and management of the property.

(c) A justification of need is required regardless of when the need for the property is determined; thus:

(1) A written justification of need must be transmitted with EPA Form 1900.8, Procurement Request/Requisition, whenever the program/project manager is aware, prior to preparation of EPA Form 1900.8, that it will be necessary to authorize use of Government-owned property in contractor's possession, furnish Governmentowned property, or allow contractor to acquire property at Government expense. Known requirements of this kind must be specified in the solicitation document as prescribed in Subpart 15-60.5.

(2) When the need to authorize use of existing Government-owned property or to authorize the furnishing or acquisition of property does not become known until evaluation of contractor's proposals or during contract negotiations, the Contracting Officer shall obtain a justification of need prior to execution of the procurement contract. In order to maintain the integrity of the competitive procurement

process, other proposers that have sary for the installation of equipment, submitted proposals will be offered shall not be installed or constructed the opportunity to amend their pro on land not owned by the Governposals as contemplated by $$ 1-3.805 ment, in such fashion as to be nonseand 15-3.805.

verable, unless approved by the Direc(3) After award of a contract, the tor, Contracts Management Division, Contracting Officer shall not author- PM-214, or the Deputy Assistant Adize the use, furnishing, or acquisition ministrator for Administration, PMof property until a justification of 211, in accordance with EPA Order need is furnished by the Chief Officer, 1960.1. The determination to locate at Division level or above, responsible such nonseverable property on land for management of the program/pro- not owned by the Government shall be ject involved. Also, the Contracting made only when all of the conditions Officer must insure that consideration in paragraph (a) (1) through (4) of for such authorization flows to the this section have been met: Government in the form of a reduc- (1) Consideration has been given to tion in contract price/cost, payment of any nonrecoverable costs involved, inrent for use of the property, or other cluding transportation and installalegal consideration determined to be tion; adequate in terms of improved per- (2) Consideration has been given to formance, increased quality, faster de. (i) locating the Government property livery, etc.

where it can be segregated from exist

ing contractor-owned and Govern$ 15-60.301-3 Special and general purpose

ment-owned property and where it is property.

readily accessible from public thor(a) Generally, only special purpose oughfares and (ii) obtaining a written property (i.e., equipment and facilities agreement by the contractor on whose items whose usefulness, without need land the property is to be placed that for substantial modification, is limited either the Government or another to a particular operation or project) Government contractor will have a may be provided to a contractor. right to use and operate the property Standard or general purpose items of upon termination or completion of the administrative equipment (e.g., office work for which it was provided. (In furniture and equipment, cafeteria cases where such an agreement is not equipment, lockers, shelving, etc.), and obtained, the negotiation effort shall technical equipment (e.g., laboratory be documented accordingly); furniture and fixtures, microscopes, (3) The contractor agrees that the oscilloscopes, gauges, etc.), shall be Government (i) will have the right to provided only when justified under abandon in place all nonseverable the most exceptional circumstances. Government property provided and

(b) Items of property having a unit (ii) will not have any obligation to discost of less than $1,000.00 shall not be assemble or remove the property or to provided contractors except as author- restore or rehabilitate the premises on ized under contracts with:

which the property is located, unless (1) Nonprofit institutions of higher otherwise provided in the contract and education or other non-profit organi- approved by the Director, Contracts zations whose primary purpose is the Management Division, PM-214, or the conduct of scientific research;

Deputy Assistant Administrator for (2) State and local Government Administration, PM-211, as required agencies; or

by EPA Order 1960.1 (this approval (3) Contractors operating a Govern authority shall not be delegated); and ment-owned plant or performing on. (4) One of the circumstances in parasite at Government installations.

graphs (a)(4)(i) through (iv) of this

section has been met8 15-60.301-4 Providing property when (i) The Government obtain an disposal is limited.

option to acquire the underlying land; (a) Nonseverable property. Nonse. (ii) The property is disposable, after verable property, other than founda- the Government's need therefor has tion and similar improvements neces- ceased, to parties other than the con

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