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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.

8 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 1042 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 1444 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.

8 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:

$ 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.

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

$ 24-7.5014 Coordination of Federal re

porting requirements. The following clause shall be used when appropriate:

Subpart 24-11.1 Stato and Local


opment, Cargo Preference Control
Center, Maritime Administration, U.S.
Department of Commerce, Washing-
ton, 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 origi.
nating 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 unobtaina-
ble or not in English, the report shall
be made in the following format.
U.S. Department of Housing and Urban De.

Office --
Date --
Cargo preference shipment report:

Vessel name --
Vessel flag --
Date of loading -
Port of loading
Port of final discharge -
Commodity description
Gross weight in pounds
Total ocean freight revenue in U.S. dollars

924-11.105 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)

; 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 42 of one (1) percent lead by weight (calculated as lead metal) in the total nonvolatile content of liquid paints.

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)

Subpart 24–11.1-State and Local Taxes Sec. 24-11.105 Resolution of tax problems.

Subpart 24-11.4—Contract Clauses 24-11.401-4 Matters requiring special con






noripersonal 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).

24-13.000 Scope of part.

Subpart 24–13.1-General 24-13.100 Scope of subpart. 24-13.101 Relationship of Federal Property

Management Regulations (FPMR) to

HUDPR. 24-13.102 Definitions. 24-13.103 Responsibility and liability for

Government property. 24-13.103-1 Prime contractors. 24-13.103-2 Subcontractors. 24-13.104 Profits and fees. 24-13.105 Use for or by contractors of

property owned and operated by the Government.

Subpart 24-13.2—Material 24-13.200 Scope of subpart. 24-13.201 Policy. 24-13.202 Procedure. 24-13.203 Disposal.

8 24-13.101 Relationship of Federal Prop

erty 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.

Subpart 24-13.3—Providing Government

Property to Contractors 24-13.300 Scope of subpart. 24-13.301 Providing property. 24-13.301-1 Special and genera' purpose

property. 24-13.301-2 Providing property when dis.

posal is limited. 24-13.301-3 Changing Government proper

ty to be provided.

Subpart 24-13.4—Use and Charges 24-13.400 Scope of subpart. 24-13.401 General. 24-13.402 Use without charge. 24-13.403 Charges.

Subpart 24–13.5—Competition 24-13.500 Scope of subpart. 24-13.501 General. 24-13.502 Solicitation documents. 24-13.503 Evaluation of bids and proposals.

AUTHORITY: Sec. 7(d), Housing and Urban Development Act (42 U.S.C. 3535(d)).

SOURCE: 41 FR 55814, Dec. 22, 1976 unless other noted.

824-13.102 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.

$ 24-13.000 Scope of part.

This part sets forth policies and procedures with respect to providing Government property for use by HUD con tractors in connection with the procurement of personal property and

(e) Contractor inventory. Contractor 824-13.103 Responsibility and liability for inventory is (1) any property acquired

Government property. by and in the possession of a contractor or subcontractor (including Gov. 824-13.103–1 Prime contractors. ernment-furnished property) under a

It is the policy of the Government, contract pursuant to the terms of

with the exception of advertised fixed which title is vested in the Govern

price contracts, not to hold a contracment; and (2) any property which the

tor responsible for loss of property Government by contract clause is obli

except for loss, destruction, or damage gated or has the option to take over

resulting from willful misconduct or under any type of contract.

lack of good faith of any of the con(f) Provide. “Provide" means to fur

tractor's personnel to maintain and nish Government-owned property or

administer the program for mainteto allow a contractor to acquire prop nance, repair, protection and preservaerty at Government expense.

tion of the property. (g) Nonseverable. “Nonseverable" means that such property cannot be $ 24-13.103–2 Subcontractors. removed after erection or installation If Government property is provided without substantial loss of value or

to a subcontractor directly by the damage thereto, or to the premises Government or by the prime contracwhere installed.

tor, the policy set forth in HUDPR 24(h) Dollar value. Dollar value” is 13.103-1 shall apply. Prior to the Conthe amount determined by the Gov. tracting Officer approving the incluernment and recorded by the Depart sion of the provisions allowing the ment in its inventory records as the prime contractor to provide Governacquisition cost of an item of Govern

ment property to a subcontractor, he ment-owned property.

shall balance the need for the protec(i) Material. “Material” means prop tion and care of Government property erty which may be consumed or ex- against the cost thereof. A prime connended in the performance of a con- tractor who provides Government tract or which may be incorporated property to a subcontractor shall not into or attached to an end item to be be relieved of any responsibility to the delivered under a contract. It includes, Government that he may have under but is not limited to raw and processed the terms of his contract. material, parts, components, assemblies, small tools and supplies which

§ 24-13.104 Profits and fees. may be consumed in normal use No fee is to be provided or allowed a during performance of a contract.

contractor under a facilities contract. (j) Nonprofit organization. “Non Where Government property is proprofit organization" means any firm vided under a facilities contract, profit organized not-for-profit which repre- or fee terms shall be considered in the sents that no part of the net earnings negotiation of the related procureof which inures to the benefit of any ment contract or contracts for prodprivate shareholder or individual.

ucts or services consistent with the (k) Equipment. The term “equip- profit guidelines set forth in 41 CFR ment” means any item of mechanical, 1-3.806. electronic, medical, technical, or scientific property as well as office furni

§ 24-13.105 Use for or by contractors of ture and machines having a useful life

property owned and operated by the expectancy of 1 year or more.

Government. (1) Facilities contract. “Facilities The on-site use for or by contractors contract” means a contract for the use of existing Government-owned properof Government real and/or personal ty (such as test and other facilities) loproperty which is provided to a con cated at installations owned and opertractor or subcontractor for use in ated by the Government may be auconnection with a separate contract or thorized in connection with the percontracts for supplies, research, train formance of Government contracts ing, or other articles or services.

only when:

(a) There is no commercial capabili. posed of in accordance with instructy adequate for the needs; or

tions of the Contracting Officer. (b) Substantial cost savings will result from use of the Government

Subpart 24-13.3—Providing owned property.

Government Property to Contractors Whenever any such use is authorized, adequate consideration comparable to § 24-13.300 Scope of subpart. commercial charges, if any, shall be This subpart sets forth policy to obtained under any affected contract. guide the decision-making process

when property (other than material) Subpart 24–13.2—Material

is to be provided a contractor for per

formance of a HUD contract and to 24-13.200 Scope of subpart.

insure that such decisions are properly

documented. This subpart sets forth policy and procedure for furnishing material (see $ 24-13.301 Providing property. HUDPR 24-13.102(i) to contractors for performance of HUD formally adver

8 24-13.301-1 Special and general purpose tised and negotiated contracts.


Generally, only special purpose $ 24-13.201 Policy.

property (i.e., equipment and facilities Contractors normally are expected

items whose usefulness, without need to furnish all material for perform

for substantial modification, is limited ance of HUD contracts. However, it

to a particular operation or project) may be in the Government's interest

may be provided to a contractor. to furnish such material when justi

Standard or general purpose items of fied by reason of economy, to expedite

administrative equipment (e.g., office contract performance, to achieve

furniture and equipment, cafeteria standardization, or under other appro

equipment, lockers, shelving, etc.), and

technical equipment (e.g., laboratory priate conditions.

furniture and fixtures, microscopes, $ 24-13.202 Procedure.

oscilloscopes, guages, etc.), shall be

provided only when justified under Solicitation documents shall describe

the most exceptional circumstances. material to be furnished by the Gov

Items of property having a unit cost of ernment in detail sufficient for evalua

less than $1,000 shall not be provided tion by prospective contractors. Fur

contractors except as authorized ther, whenever material is to be fur

under contracts with: nished by the Government, the con

(a) Nonprofit institutions of higher tract shall specify whether the con

education or other nonprofit organizatracting activity or the contractor is to

tions whose primary purpose is the prepare requisitioning documents. If

conduct of scientific research; the contractor is to be responsible for

(b) State and local Government preparing requisitioning documents,

agencies; or the contractor shall prepare such doc

(c) Contractors operating a Governuments in accordance with the Federal ment-owned plant or performing on. Standard Requisitioning and Issue site at Government installations. Procedure (FEDSTRIP) system, prescribed by 41 CFR Subpart 101-26.2. 8 24-13.301-2 Providing property when (See 41 CFR Subpart 1-5.9. Use of disposal is limited. GSA Supply Services by Contractors

Whenever nonseverable property is Performing Cost-Reimbursement Type

to be provided, the following will be Contracts.) The appropriate clause for

appropriate clause for applicable: Cost-Reimbursement and Fixed Price

(a) Nonseverable property. Nonsevercontracts shall be incorporated.

able property, other than foundations

and similar improvements necessary $ 24-13.203 Disposal.

for the installation of equipment, shall Residual Government material (in- not be installed or constructed on land cluding scrap and salvage) shall be dis- not owned by the Government in such

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