§ 24-7.5012 Reproduction of reports. Insert the following clause when the product of the contract is a report, data or other written material. REPRODUCTION OF REPORTS Reproduction of reports, data or other written material, if required herein, is authorized provided that the material produced does not exceed 5,000 production units of any page and that items consisting of multiple pages do not exceed 25,000 production units in the aggregate. The aggregate number of production units is to be determined by multiplying pages times copies. A production unit is one sheet, size 8 by 101⁄2 inches or less, printed on one side only and in one color. All copy preparation to produce camera ready copy for reproduction must be set by methods other than hot metal typesetting. The reports should be produced by methods employing stencils, masters and plates which are to be used on single unit duplicating equipment no larger than 11 by 17 inches with a maximum image of 10 by 144 inches and are prepared by methods or devices that do not utilize reusable contact negatives and/or positives prepared with a camera requiring a darkroom. All reproducibles (camera ready copies of reproduction by photo offset methods) shall become the property of the Government and shall be delivered to the Government with the report, data or other written material. § 24-7.5013 Warranty. When it has been determined that it is appropriate to place a warranty on equipment or services furnished under a contract, insert the following clause set forth below. Each construction contract shall incorporate an appropriate clause. WARRANTY The Contractor agrees that the supplies or services furnished by the Contractor under this contract shall be covered by warranties which are either standard or customary in the trade or are substantially similar to, and not in excess of, a standard or customary trade warranty. The Contractor shall furnish any warranty description at time of delivery. Supply packages shall be simply marked to show existence of the warranty, its expiration date and the company official to be notified. § 24-7.5014 Coordination of Federal reporting requirements. The following clause shall be used when appropriate: COORDINATION OF FEDERAL REPORTING REQUIREMENTS In the event that it is a contractual requirement to collect information from ten or more public respondents the provisions of (44 U.S.C. Ch. 35, Coordination of Federal Reporting Requirements) shall apply to this contract. The Contractor shall obtain through the Government Technical Representative (GTR) the required Office of Management and Budget clearance before making public contact for the collection of data from public respondents or expending any funds for such collection. The authority to proceed with the collection of data and expenditure of funds therefore shall be in writing signed by the Contracting Officer. § 24-7.5015 Ocean freight shipments-use of American-flag vessels-reports. The following clause shall be used when appropriate with the required report filed as set forth in paragraph (b) of this section. (a) It is the policy of HUD to encourage and foster the American Merchant Marine. Pursuant to the provisions of section 901(b) of the Merchant Marine Act of 1936 (46 U.S.C. 1241) invitations for bids and requests for proposals shall in appropriate cases contain the following clause: U.S.-FLAG VESSEL PROVISION The Contractor agrees to ship on privately owned U.S.-flag commercial vessels at least 50 percent of the gross tonnage of any equipment, materials, or commodities (computed separately for dry bulk carriers, dry cargo liners, and tankers) which may be transported on ocean vessels. Pursuant to section 901(b) of the Merchant Marine Act, 1936, as amended (46 U.S.C. sec. 1241(b)), the Secretary or his duly authorized representative may permit shipment in a manner other than that required by this provision upon the basis of evidence furnished by the contractor that U.S.-flag commercial vessels. The Contractor will be required to certify compliance with this requirement prior to final payment. For purposes of this section, the term "privately owned U.S.-flag commercial vessels" shall not be deemed to include any vessels which, subsequent to September 21, 1961, shall have been either: (a) Built outside the United States, (b) rebuilt outside the United States, or (c) documented under any foreign registry, until such vessel shall have been documented under the laws of the United States for a period of 3 years. (b) Each affected office shall submit to the Chief, Office of Market Devel opment, Cargo Preference Control Center, Maritime Administration, U.S. Department of Commerce, Washington, D.C. 20235, a report as follows: Within 20 working days of the date of loading for each shipment originating in the United States, or within 30 working days for each shipment originating outside the United States, a report consisting, where obtainable, of a properly notated and legible copy in English of the ocean bill of lading. If a copy of the bill of lading is unobtainable or not in English, the report shall be made in the following format. U.S. Department of Housing and Urban Development: Office Date Cargo preference shipment report: Vessel name Vessel flag Date of loading Port of loading Port of final discharge Total ocean freight revenue in U.S. dollars 24-7.5016 Lead based paint proscription. In accordance with the requirements of the Lead Based Paint Poisoning Prevention Act of July 1, 1973, and 24 CFR, Part 35, every construction or rehabilitation contract and subcontract which includes painting shall contain the following provisions for the restricted use of lead based paints: The Contractor agrees that exterior and/or interior paints, enamels, and/or primers used on any surface in residential structures constructed or rehabilitated under this contract shall not contain more than 1⁄2 of one (1) percent lead by weight (calculated as lead metal) in the total nonvolatile content of liquid paints. Subpart 24-11.1 State and Local Taxes § 24-11.105 Resolution of tax problems. In order to have uniformity in HUD's treatment of the tax aspects of a contract and to insure effective cooperation with other Government agencies on tax matters of mutual interest, the Office of General Counsel has the responsibility within HUD for handling all tax problems. Therefore, the procuring activity will not engage in negotiation with any taxing authority for the purpose of determining validity or applicability of, or obtaining exemptions from or refund of, any tax. When a problem exists, the Contracting Officer shall request in writing the Office of General Counsel's assistance. The request shall detail the problem and be accompanied by appropriate backup data. The Office of General Counsel shall report to the Contracting Officer as to the necessary disposition of the tax problem. The Contracting Officer will notify the contractor of the outcome of the tax problem. The Office of General Counsel shall have the responsibility for communications with the Department of Justice for representation or intervention in proceedings concerning taxes. (Sec. 7(d), Housing and Urban Development Act (42 U.S.C. 3535(d)) [41 FR 55813, Dec. 22, 1976] Subpart 24-11.4 Contract Clauses § 24-11.401-4 Matters requiring special consideration. When Government-furnished property is involved in a proposed contract, it is the Department's policy to follow the requirements set forth in 41 CFR 1-11.401-4(a), (b), (e) and (f) and insert the clause set forth in 41 CFR 1-11.401-4(c) in all proposed contracts. (Sec. 7(d), Housing and Urban Development Act (42 U.S.C. 3535(d)) [41 FR 55813, Dec. 22, 1976] 40-113 0-79——9 nonpersonal services (including construction), and prescribes applicable contract clauses. Subpart 24-13.1-General § 24-13.100 Scope of subpart. This subpart sets forth material concerning the definitions of HUD property, its use under prime and subcontracts, and its relationship to Federal Property Management Regulations (FPMR). § 24-13.101 Relationship of Federal Property Management Regulations (FPMR) to HUDPR. This Part 24-13 of the HUDPR establishes policy for the control, use and maintenance of Government property under prime and subcontracts and is intended to implement and supplement the FPMR 41-CFR Part 101, to the extent that is necessary to carry out the requirements of public policy relating to Government property. This part does not apply to the repair, rehabilitation, management or sale of Secretary-acquired property. § 24-13.102 Definitions. For the purpose of this part, the following terms have the meanings set forth in this section. (a) Property. Property includes all property except Secretary-acquired property, both real and personal, severable and nonseverable, and expendable material and nonexpendable equipment. Secretary-acquired property means all real and personal property under legal custody of the Secretary whether or not title to the property vests in the Secretary. (b) Government property. Government property includes all property as to which title is vested in the Government. (c) Government-furnished property. Government-furnished property is Government owned or leased property in the possession of the contractor. (d) Contractor-acquired property. Contractor-acquired property is property procured or otherwise obtained by the contractor through sources other than the Government for performance of a HUD contract. (e) Contractor inventory. Contractor inventory is (1) any property acquired by and in the possession of a contractor or subcontractor (including Government-furnished property) under a contract pursuant to the terms of which title is vested in the Government; and (2) any property which the Government by contract clause is obligated or has the option to take over under any type of contract. (f) Provide. "Provide" means to furnish Government-owned property or to allow a contractor to acquire property at Government expense. (g) Nonseverable. "Nonseverable" means that such property cannot be removed after erection or installation without substantial loss of value or damage thereto, or to the premises where installed. (h) Dollar value. "Dollar value" is the amount determined by the Government and recorded by the Department in its inventory records as the acquisition cost of an item of Government-owned property. (i) Material. "Material" means property which may be consumed or expended in the performance of a contract or which may be incorporated into or attached to an end item to be delivered under a contract. It includes, but is not limited to raw and processed material, parts, components, assemblies, small tools and supplies which may be consumed in normal use during performance of a contract. (j) Nonprofit organization. "Nonprofit organization” means any firm organized not-for-profit which represents that no part of the net earnings of which inures to the benefit of any private shareholder or individual. (k) Equipment. The term "equipment" means any item of mechanical, electronic, medical, technical, or scientific property as well as office furniture and machines having a useful life expectancy of 1 year or more. (1) Facilities contract. "Facilities contract" means a contract for the use of Government real and/or personal property which is provided to a contractor or subcontractor for use in connection with a separate contract or contracts for supplies, research, training, or other articles or services. § 24-13.103 Responsibility and liability for Government property. § 24-13.103-1 Prime contractors. It is the policy of the Government, with the exception of advertised fixed price contracts, not to hold a contractor responsible for loss of property except for loss, destruction, or damage resulting from willful misconduct or lack of good faith of any of the contractor's personnel to maintain and administer the program for maintenance, repair, protection and preservation of the property. § 24-13.103-2 Subcontractors. If Government property is provided to a subcontractor directly by the Government or by the prime contractor, the policy set forth in HUDPR 2413.103-1 shall apply. Prior to the Contracting Officer approving the inclusion of the provisions allowing the prime contractor to provide Government property to a subcontractor, he shall balance the need for the protection and care of Government property against the cost thereof. A prime contractor who provides Government property to a subcontractor shall not be relieved of any responsibility to the Government that he may have under the terms of his contract. § 24-13.104 Profits and fees. No fee is to be provided or allowed a contractor under a facilities contract. Where Government property is provided under a facilities contract, profit or fee terms shall be considered in the negotiation of the related procurement contract or contracts for products or services consistent with the profit guidelines set forth in 41 CFR 1-3.806. § 24-13.105 Use for or by contractors of property owned and operated by the Government. The on-site use for or by contractors of existing Government-owned property (such as test and other facilities) located at installations owned and operated by the Government may be authorized in connection with the performance of Government contracts only when: (a) There is no commercial capability adequate for the needs; or (b) Substantial cost savings will result from use of the Governmentowned property. Whenever any such use is authorized, adequate consideration comparable to commercial charges, if any, shall be obtained under any affected contract. Subpart 24-13.2-Material § 24-13.200 Scope of subpart. This subpart sets forth policy and procedure for furnishing material (see HUDPR 24-13.102(i) to contractors for performance of HUD formally advertised and negotiated contracts. § 24-13.201 Policy. Contractors normally are expected to furnish all material for performance of HUD contracts. However, it may be in the Government's interest to furnish such material when justified by reason of economy, to expedite contract performance, to achieve standardization, or under other appropriate conditions. § 24-13.202 Procedure. Solicitation documents shall describe material to be furnished by the Government in detail sufficient for evaluation by prospective contractors. Further, whenever material is to be furnished by the Government, the contract shall specify whether the contracting activity or the contractor is to prepare requisitioning documents. If the contractor is to be responsible for preparing requisitioning documents, the contractor shall prepare such documents in accordance with the Federal Standard Requisitioning and Issue Procedure (FEDSTRIP) system, prescribed by 41 CFR Subpart 101-26.2. (See 41 CFR Subpart 1-5.9. Use of GSA Supply Services by Contractors Performing Cost-Reimbursement Type Contracts.) The appropriate clause for Cost-Reimbursement and Fixed Price contracts shall be incorporated. § 24-13.203 Disposal. Residual Government material (including scrap and salvage) shall be dis posed of in accordance with instructions of the Contracting Officer. Subpart 24-13.3—Providing Government Property to Contractors § 24-13.300 Scope of subpart. This subpart sets forth policy to guide the decision-making process when property (other than material) is to be provided a contractor for performance of a HUD contract and to insure that such decisions are properly documented. § 24-13.301 Providing property. § 24-13.301-1 Special and general purpose property. Generally, only special purpose property (i.e., equipment and facilities items whose usefulness, without need for substantial modification, is limited to a particular operation or project) may be provided to a contractor. Standard or general purpose items of administrative equipment (e.g., office furniture and equipment, cafeteria equipment, lockers, shelving, etc.), and technical equipment (e.g., laboratory furniture and fixtures, microscopes, oscilloscopes, guages, etc.), shall be provided only when justified under the most exceptional circumstances. Items of property having a unit cost of less than $1,000 shall not be provided contractors except as authorized under contracts with: (a) Nonprofit institutions of higher education or other nonprofit organizations whose primary purpose is the conduct of scientific research; (b) State and local Government agencies; or (c) Contractors operating a Government-owned plant or performing onsite at Government installations. § 24-13.301-2 Providing property when disposal is limited. Whenever nonseverable property is to be provided, the following will be applicable: (a) Nonseverable property. Nonseverable property, other than foundations and similar improvements necessary for the installation of equipment, shall not be installed or constructed on land not owned by the Government in such |