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tractor and the Government acquires when the Government receives adefrom the owner a right to retain title quate consideration therefor. Unilaterand to dispose of all facilities it has al decreases in or substitutions for the constructed, without regard to the Government property specified in a laws of real property in the jurisdic contract to be provided by the Governtion in which the facility is located. ment may be ordered by the ContractSuch right of disposition must be un ing Officer pursuant to the Governencumbered, and will be evidenced by ment Property clause incorporated written agreement or other legal in- into the contract. strument signed by the contractor or other owner of the real property;

8 15-60.301-6 Contract schedule articles. (iii) The contractor agrees in writing (a) General. Whenever a contractor that he will purchase the property is authorized to acquire property at upon the termination or completion of Government expense, is furnished the contract under which the property Government-owned property, or is auis provided, or within a specified rea thorized to use Government-owned sonable time thereafter, at a price to property in his possession, such propbe determined by appraisal, or at a erty will be identified, as specifically price equal to the acquisition cost of

as possible, in the contract Schedule the property less depreciation at the and the appropriate Government rate or rates specified in the contract Property clause prescribed in (which rate or rates shall take into ac- Part 1-7 will be included in the concount the estimated useful life of the tract. Also, the Schedule will include property) or for the scrap and salvage the appropriate Article prescribed in value of the property if it is deter- $ 15-60.301-6(b). mined that the estimated useful life of (b) Contract Schedule Articles. (1) the property will not extend beyond When property is to be acquired or the completion of the work for which fabricated by a contractor, the estithe property was provided. Any such mated cost of such property and the purchase agreement must permit the following Article will be included in Government to credit any amounts due the contractor under the contract against the purchase price; or

PROPERTY TO BE ACQUIRED OR FABRICATED (iv) The Deputy Assistant Adminis

(1973) trator, PM-211, specifically approves Subject to the approval of the Contractother provisions which he considers ing Officer, the Contractor may acquire or adequate to protect the interests of

fabricate (the property listed below) (the the Government in regard to the prop

property listed in Appendix "A," attached

hereto and made a part hereof). The Goverty.

ernment will reimburse the Contractor for (b) Property subject to patent or

the cost of such property as determined alother proprietary rights. If patent or lowable by the Contracting Officer in acother proprietary rights of a contrac cordance with Part 1-15 of the Federal Protor may restrict the disposal of Gov curement Regulations as in effect on the ernment property, the condition in date of this contract. The Contractor shall either paragraph (a)(4)(ii) or (iii) of have no obligation to acquire or fabricate this section shall be satisfied before

property and the Government shall have no

obligation to reimburse any amount for such property is provided.

such property in excess of the total estimat8 15-60.301-5 Changing Government prop

ed cost of such property set forth in this

Schedule, unless this contract is amended to erty to be provided

increase such amount. All property acquired Increases in the amount of Govern or fabricated, for which the contractor is rement property specified in a contract imbursed, shall be subject to the provisions shall be made under the contract of the Government Property clause of this "Changes" clause by issuance of an ap

contract. propriate Change Order or Supple (2) If a procurement contract is nemental Agreement. Such increases gotiated on the basis that Governshall be made only when approved in ment-owned property will be provided accordance with the policies pre- the Contractor, the following Article scribed in this Subpart 15-60.3 and will be included in the contract Sched

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ule. If the Government is to pay the cost of transportation and installation

tronsnortation and installation of such property the Schedule will so state. The dollar value of each item of property listed will be shown.

GOVERNMENT-FURNISHED PROPERTY (1973)

The terms and conditions of this contract are based on the Government furnishing the property (listed below) (listed in Appendix “A” attached hereto and made a part hereof). Title to property furnished shall remain in the Government and is subject to the provisions of the Government Property clause of this contract. The Contractor is authorized to use the Government-owned property (on a no-charge basis) (at the rental rates specified herein), in performance of this contract.

(3) The following Article will be included in the contract Schedule when a Contractor is authorized to use Government property in his possession. Also, the appropriate Government Property clause prescribed in FPR Part 1-7 must be incorporated into the procurement contract. The dollar value of each item of property listed will be shown and if the Government is to pay the cost of installing or modifying such property the Schedule will so state.

advance of any use of the property under this paragraph:

(i) The rental rates for the right to use the property shall be those set forth in paragraph (e) below.

(ii) The cost of the property shall be the total cost to the Government, as determined by the Contracting Officer of each item of property, including the cost of transportation and installation, if such costs are borne by the Government.

(iii) For the purpose of determining the amount of rental due under paragraph (a)(2) below, the rental period shall be not less than one (1) month nor more than six (6) months, as may be mutually agreed to.

(iv) For the purpose of computing any credit under paragraph (a)(2) below, the measurement unit for determining the amount of use of the property by the Contractor shall be hours of actual use, direct labor hours, or any other measurement unit which will result in an equitable apportionment of the rental charge, as may be mutually agreed to.

(2) The Contractor shall compute the amount of rentals to be paid for each rental period, using the bases established pursuant to paragraph (a)(1) above. The rental rates shall be applied to the cost of such of the property as may have been authorized for use in advance pursuant to this paragraph (a), for each rental period. The full charge for each rental period, so determined, shall be reduced by a credit in the amount of such rental as would otherwise be properly allocable to work with respect to which the use of the property without charge is authorized. Such credit shall be computed by multiplying the full rental for the rental period by a fraction whose numerator is the amount of use of the property by the Contractor without charge during such period, and whose denominator is the total amount of use of the property by the Contractor during such period.

(3) The Contractor shall submit to the Contracting Officer within ninety (90) days after the close of each rental period a written statement of the use made of the property by the Contractor and the rental due the Government hereunder, and shall make available such records and data as are determined by the Contracting Officer to be necessary to verify the information contained in the statement.

(4) If the Contractor fails to submit the statement within the prescribed ninety (90) day period, the Contractor shall be liable for the full rental for the period in question, subject to the exception stated in subparagraph (5) below.

(5) If the Contractor's failure to submit the statement within the prescribed ninety (90) day period arose out of causes beyond the control and without the fault or negli

USE OF GOVERNMENT PROPERTY IN

CONTRACTOR'S POSSESSION (1973) The Contractor is authorized to use in performance of this contract (on a nocharge basis) (at the rental rates specified herein), the Government property (listed below) (listed in Appendix "A" attached hereto and made a part hereof), provided to him under (this contract) (the following contracts:)

(4) The following Article will be included in all contracts under which the Contractor must pay rent for use of Government-owned property:

USE AND CHARGE (a) Subject to the payment of a rental therefor, the Contractor may use in the performance of this contract the property specified in the Schedule or authorized in writing by the Contracting Officer. The amount of rental to be paid for the right to use the property under this paragraph (a) shall be determined in accordance with the following procedures:

(1) The following bases are or shall be established in writing for the rental computation prescribed in paragraph (a)(2) below in

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gence of the Contractor, the Contracting Officer shall grant to the Contractor in writing a reasonable extension of time in which to make such submission.

(b) Unless otherwise authorized in writing by the Contracting Officer, the Contractor shall use the property only in performance of contracts and subcontracts of the Environmental Protection Agency.

(c) Concurrently with the submission of the written statement prescribed by paragraph (a)(3) above, the Contractor shall pay the rental due the Government under this Article by check made payable to the Treasurer of the United States. Each check shall be mailed or delivered to the Contracting Officer. Receipt and acceptance by the Government of the Contractor's checks pursuant to this paragraph shall constitute an accord and satisfaction of the final amount due the Government hereunder unless the Contractor is notified in writing within onehundred-eighty (180) days following such receipt that the amount received is not regarded by the Government as the final amount due.

(d) If the Contractor uses any item of the property without authorization, the Contractor shall be liable for the full monthly rental, without credit, for such item for each month or part thereof in which such unauthorized use occurs: Provided, however, that the Director, Contracts Management Division, PM-214, may, in writing, waive the Contractor's liability for such unauthorized use if he determines that the Contractor exercised reasonable care to prevent such unauthorized use. In this latter event, the Contractor shall be liable only for the rental that would otherwise be due under this Article. The acceptance of any rental by the Government hereunder shall not be construed as a waiver or relinquishment of any rights it may have against the Contractor growing out of the Contractor's unauthorized use of the property or any other failure to perform this contract according to its terms.

(e) The following rental rates shall be used when rent is to be charged, or an evaluation factor (equivalent to rent) is computed:

(1) For land and land preparation, buildings, building installations, and land instal lations, a fair and reasonable rental based on sound commercial practice;

(2) For personal property (equipment and facilities) not covered in (1) above; not less than the prevailing commercial rate for like property, if any, or in the absence of such rate, not less than two percent (2%) of the dollar value per month for electronic test equipment and automotive equipment; and not less than one percent (1%) of the dollar value per month for all other property and equipment.

(b) If the Contractor enters into other subcontracts with subcontractors who have Government-owned property provided to them under contracts which provide that no-charge use may be authorized, the Contracting Officer may authorize the use of such property on a no-charge basis: Provided:

(1) He determines that such use will not give the subcontractor a favored competitive position; and

(2) This contract is amended to reflect adequate consideration to the Government for the use of such property on a no-charge basis. Such subcontracts shall specifically authorize the no-charge use, and require the written approval of the Contracting Officer. No modification to this contract will be required, as provided in (2) above, if the Contracting Officer determines that an elimination of charge for use of such property will, of itself, result in an adequate decreased cost to the Government under this contract.

(c) If the Government-owned property provided to the Contractor or any subcontractor hereunder on a no-charge basis are increased or decreased or do not remain available during the performance of this contract, or if any change is made in the terms and conditions under which they are made available, such equitable adjustments as may be appropriate will be made in the terms of this contract, unless such increase or decrease was contemplated in the establishment of the price of this contract or a subcontract.

(d) The Contractor agrees that he will not directly or indirectly, through overhead charges or otherwise, include in the price of this contract, or seek reimbursement under this contract for, any rental charge paid by the Contractor for the use on other contracts of the property referred to herein. Any subcontract hereunder which authorizes the subcontractor to use Government property on a no-charge basis shall contain a provision to the same effect as this paragraph (d). [39 FR 4761, Feb. 7, 1974, as amended at 42 FR 33750, July 1, 1977)

(c) By otherwise approving such use in writing.

(b) A prime contractor may authorize subcontractors to use Government property in the subcontractor's possession, on a no-charge basis, when (1) the price or fee of the prime contract is negotiated with the specific understanding that the use of property by subcontractors on a no-charge basis will be permitted in the performance of specific subcontracts with specific subcontractors and (2) the “Use of Government Property by Subcontractors" clause, prescribed in $ 1560.301(b)(5), is included in the prime contract Schedule. (39 FR 4761, Feb. 7, 1974, as amended at 42 FR 33750, July 1, 1977)

Subpart 15-60.4–Use and Charges

$ 15-60.400 Scope of subpart.

This subpart deals with the authori. ty for a contractor or subcontractor to use Government property and the charge for such use.

$ 15-60.401 General.

Authority for a contractor to use Government property must be granted by the Contracting Officer responsible for the contract under which the property is accountable and the contract file must be documented accordingly. If use without charge is granted, the contract file must be documented with a description of the consideration to the Government for such "no-charge" use and the Article prescribed in § 1560.301-6(b)(3) must be included in the contract Schedule. The Article prescribed in § 15-60.301-6(b)(3) and the “Use and Charges" Article set out in $ 15-60.301(b)(4) will be included in all contracts involving Government property when rent is charged for such use.

§ 15-60.403 Rent.

(a) The following rental rates shall be used when rent is to be charged or an evaluation factor (equivalent to rent) is computed:

(1) For land and land preparation, buildings, building installations, and land installations, a fair and reasonable rental based on sound commercial practice; and facilities) not covered in paragraph (a)(1) of this section not less than the prevailing commercial rate for like property, if any, or in the absence of such rate, not less than two percent (2%) of the dollar value for electronic test equipment and automotive equipment; and not less than one percent (1%) of the dollar value per month for all other property and equipment.

Subpart 15-60.5 Competition

8 15-60.402 Use without charge.

(a) A contractor may use Government property without charge in the performance of:

(1) Prime contracts which specifically authorize use without charge, and

(2) Subcontracts of any tier if the Contracting Officer having cognizance over the prime contract concerned has:

(i) Determined that the Government will receive adequate consideration, and

(ii) Authorized use without charge

$ 15-60.500 Scope of subpart.

This subpart sets forth guidance designed to preclude one prospective contractor from receiving a competitive advantage over others when Government property is provided.

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(a) Including such authorization in the prime contract;

(6) Approving a subcontract specific cally authorizing such use; or

§ 15-60.501 General.

It is incumbent upon the Contracting Officer to insure that genuine competition prevails and that adequate consideration flows to the Government whenever and however Gov. ernment property is to be provided a

contractor for contract performance. $ 15-60.503 Evaluation of bids and proposWillingness and ability to provide all als. resources necessary for contract per

The following policy shall be considformance should be an important

ered during evaluation of bids and profactor in evaluating competitive con posals: tractors.

(a) In a competitive procurement, a

prospective contractor provided Gov8 15-60.502 Solicitation documents.

ernment property or authorized to use Contracting Officers shall make cer Government-owned property in his tain that solicitation documents:

possession receives some degree of (a) Require prospective contractors competitive advantage. When evaluatto specify additional facilities and ing bids and proposals, such an advanequipment which must be acquired for

tage must be precluded through use of contract performance, the estimated

an equalizing factor in establishing cost of individual items, and whether

the competitive range for negotiation

and in arriving at the lowest bid. Any acquisition of such property will be fi

equitable equalizing factor may be nanced by the prospective contractor

used; e.g., rent equivalent, value of or whether the Government will be re

property, depreciation, etc. quested to provide the required items.

(b) Government property to be fur(b) Explain whether it is the Gov

nished or acquired need not be asernment's intention to provide proper

signed a weighted factor or criterion ty, when it is known prior to solicita

for evaluating bids and proposals. tion that contract performance will re

However, the evaluation narrative quire additional facilities or equip

shall explain the importance that was ment.

placed upon Government property in (c) Require prospective contractors rating and ranking bids and proposals. to:

(c) If a contractor is to be allowed to (1) List items (including dollar retain Government property at convalue) of Government-owned property tract completion, the bid or proposal in their possession which they propose price shall be increased by an evaluato use in performance of the prospec- tion factor equivalent to: tive contract;

(1) The cost to be reimbursed by the (2) Identify the contract or other in Government for property acquired at strument under which the property is Government expense; and accountable; and

(2) The current dollar value (cost (3) Present written permission to use less depreciation) of Government-fursuch property in the performance of nished property. the prospective EPA contract from the Government Contracting Officer Subpart 15-60.6—Administration of having cognizance of the property.

Government Property (d) Include a statement that the user will assume all costs related to $ 15-60.600 Scope of subpart. making the property available for use

This subpart sets forth policy and (e.g., transportation, installation, reha- procedures governing administration bilitation, modification, etc.), unless,

of Government-furnished property the Government is to assume such

and property acquired by contractors costs.

at Government expense for perform(e) Include a statement which ex- ance of EPA contracts. plains the consideration to be given Government property during evalua- 8 15-60.601 General. tion of bids and proposals. This is to

(a) Responsibility within EPA for insure that all prospective bidders and administering Government property in offerors understand that Government a contractor's possession rests primarproperty will be an important consid- ily with EPA Property Administrators eration in evaluating their bids and and is defined in an “Agreement of proposals.

Understanding Covering Contract

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