(1) Consideration has been given to any nonrecoverable costs involved, including transportation and installation.

(2) Consideration has been given to (i) locating the Government property where it can be segregated from existing contractor-owned and Government-owned property and where it is readily accessible from public thoroughfares and (ii) obtaining a written agreement by the contractor on whose land the property is to be placed that either the Government or another Government contractor will have a right to use and operate the property upon termination or completion of the work for which it was provided. (In cases where such an agreement is not obtained, the negotiation effort shall be documented accordingly.)

(3) The contractor agrees that the Government (i) will have the right to abandon in place all nonseverable Government property provided and (ii) will not have any obligation to disassemble or remove the property or to restore or rehabilitate the premises on which the property is located, unless otherwise provided in the contract and approved by the Head of the Procuring Activity.

(4) One of the circumstances in paragraphs (a)(4) (i)–(v) of this section has been met

(i) The Government obtains an option to acquire the underlying land;

(ii) The property is disposable, after the Government's need therefore has ceased, to parties other than the contractor and the Government acquires from the owner a right to retain title and to dispose of all facilities it has constructed, without regard to the laws of real property in the jurisdiction in which the facility is located. Such right of disposition must be unencumbered, and will be evidenced by written agreement or other legal in

strument signed by the contractor or other owner of the real property;

(iii) The contractor agrees in writing that he will purchase the property upon the termination or completion of the contract under which the property is provided, or within a specified reasonable time thereafter, at a price to be determined by appraisal, or at a price equal to the acquisition cost of the property less depreciation at the rate or rates specified in the contract (which rate or rates shall take into account the estimated useful life of the property) or for the scrap and salvage value of the property if it is determined that the estimated useful life of the property will not extend beyond the completion of the work for which the property was provided. Any such purchase agreement must permit the Government to credit any amounts due the contractor under the contract against the purchase price; or

(iv) The Head of the Procuring Activity specifically approves other provisions which he considers adequate to protect the interests of the Government in regard to the property.

(b) Property subject to patent or other proprietary rights. If patent or other proprietary rights of a contractor may restrict the disposal of Government property, the condition in either paragraph (a)(4) (ii) or (iii) of this section shall be satisfied before such property is provided.

§ 24-13.301-3 Changing Government property to be provided.

Increases in the amount of Government property specified in a contract shall be made under the contract "Changes" clause by issuance of an appropriate Change Order or Supplemental Agreement. Such increases shall be made only when approved in accordance with the policies prescribed in this Subpart 24-13.3 and when the Government receives adequate consideration therefor. Unilateral decreases in or substitutions for the Government property specified in a contract to be provided by the Government may be ordered by the Contracting Officer.

Subpart 24-13.4-Use and charges

§ 24-13.400 Scope of subpart.

This subpart deals with the authority for a contractor or subcontractor to use Government property and the method for determining the charge, if any, for such use.

§ 24-13.401 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.

§ 24-13.402 Use without charge.

(a) A contractor may use Government property without charge in the concurrent performance of contracts for more than one Government agency.

(b) A prime contractor may authorize subcontractors to use Government property which is in the possession of a subcontractor on a no-charge basis, when 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.

§ 24-13.403 Charges.

The following charges shall be made or used as an evaluation factor:

(a) For land and land preparation, buildings, building installations, and land installations, a fair and reasonable rental based on sound commercial practice.

(b) For personal property (equipment and facilities) not covered in (a) of this section not less than the prevailing commercial rate for like property.

(c) For concurrent commercial usage of property an amount equal to at least 10% of the fair market value of such usage.

Subpart 24-13.5-Competition

§ 24-13.500 Scope of subpart.

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

§ 24-13.501 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 Government property is to be provided a contractor for contract performance. It is also incumbent upon the Contracting Officer to insure that no unfair advantage inures to a contractor in possession of Government property.

§ 24-13.502 Solicitation documents.

Contracting Officers shall make certain that solicitation documents:

(a) Require each prospective contractor to state whether the use of Government property, additional facilities and equipment which must be acquired for contract performance, the estimated cost of individual items, and whether acquisition of such property will be financed by the prospective contractor or whether the Government will be requested to provide the required items.

(b) Explain whether it is the Government's intention to provide property, when it is known prior to solicitation that contract performance will require additional facilities or equipment.

(c) Require prospective contractors to:

(1) List items (including dollar value) of Government-owned property in their possession which they propose to use in performance of the prospective contract;

(2) Identify the contract or other instrument under which the property is accountable; and

(3) Present written permission to use such property in the performance of the prospective HUD contract from

the Government Contracting Officer having cognizance of the property.

(d) Include a statement that the user will assume all costs related to making the property available for use (e.g., transportation, installation, rehabilitation, modification, etc.), unless the Government is to assume such costs.

(e) Include a statement which explains the consideration to be given Government property during evaluation of bids and proposals. This is to insure that all prospective bidders and offerors understand that Government property will be an important consideration in evaluating their bids and proposals.

§ 24-13.503 Evaluation of bids and proposals.

The following policy shall be considered during evaluation of bids and proposals:

(a) In a competitive procurement, a prospective contractor provided Government property or authorized to use Government-owned property in his possession receives some degree of competitive advantage. When the degree of competitive advantage is so substantial as to be viewed as unfair by the Contracting officer, then the Contracting Officer shall utilize an equitable equalizing factor, such as increasing the bid price by an evaluation factor equivalent to:

(1) The cost to be reimbursed by the Government for property acquired at Government expense.

(2) The current dollar value (cost less depreciation) of Government-furnished property.

PART 24-16—PROCUREMENT FORMS

Subpart 24–16.2—Forms for Negotiated Supply Contracts

Sec.

24-16.201 Form for fixed price contracts. 24-16.201-1 Fixed price supply contracts— general provisions.

24-16.201-2 Fixed price contracts-general provisions (other than supply).

Subpart 24-16.3—Purchase and Delivery Order

Forms

24-16.350 Form for purchase orders.

Subpart 24-16.8—Miscellaneous Forms

Sec. 24-16.807 Cost-reimbursement forms-general provisions.

24-16.808 Additional general provisions— small business subcontracting. 24-16.853 Contractor's request for progress payment.

24-16.854 Reports of inventions.

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

SOURCE: 41 FR 55816, Dec. 22, 1976, unless otherwise noted.

Subpart 24-16.2-Forms for Negotiated Supply Contracts

§ 24-16.201 Forms for fixed price con

tracts.

§ 24-16.201-1 Fixed price supply contracts-general provisions.

Standard Form 32 and HUD Form 752 shall be used for all fixed price supply contracts in excess of $10,000. In lieu of HUD Form 752, another appropriate form designed for this specific prupose and approved through the Departmental clearance procedures may be utilized.

§ 24-16.201-2 Fixed price contracts-general provisions (other than supply).

HUD form 736 shall be used for all fixed price contracts over $10,000 other than supply, construction or property management contracts. In lieu of HUD-736, another appropriate form designed for this specific prupose and approved through the Departmental clearance procedures may be utilized.

Subpart 24-16.3-Purchase and Delivery Order Forms

§ 24-16.350 Form for purchase orders.

All HUD purchase orders shall be executed on HUD Form 35 or on any other appropriate form designed for this specific purpose and approved through the Departmental clearance procedures.

situation, and to determine the requirements for implementing advances, the Contracting Officer shall be guided by this section, the 41 CFR Subparts 1-30.1 and 1-30.4, Department of the Treasury Circular 1075 and part VI of the Department of the Treasury Fiscal Requirements Manual.

(b) Cash advances by HUD shall be limited to the minimum amounts needed by the contractor for the performance of the contract. The advance shall be timed in accord with the contractor's actual cash requirements.

(c) Department of the Treasury Circular 1075 (revised April 6, 1969) authorizes two methods for making cash advances: the letter of credit and the Treasury check. Normally, the method to be used will be chosen as follows:

(1) If HUD does not expect to have a continuing relationship with the contractor for at least one (1) year, advances will be made by Treasury check.

(2) If HUD expects to have a continuing relationship with the contractor for at least one (1) year involving total annual advances of less than $250,000, advances will be made by Treasury check.

(3) If HUD expects to have a continuing relationship with the contractor for at least one (1) year involving total annual advances of $250,000 or more and disbursements will not be made on a reimbursable basis, advances will be made by use of a letter of credit.

§ 24-30.104-1 Letters of credit.

No letter of credit will be issued unless the statutory requirements specified in 41 CFR 1-30.405 are fulfilled. If the Contracting Officer determines that advance payment by letter of credit is appropriate, he shall insert the clause provided in HUDPR 24-7.5007.

Subpart 24-30.4-Advance Payments § 24-30.406 Responsibility-Delegation authority.

The determinations and findings required by 41 CFR 1-30.405 shall be made by the Head of the Procuring Activity only in those instances where

§ 24-50.101 Definitions

As used in this subpart, the following terms have the meaning as stated: (a) "Cost-reimbursement type contracts" includes cost-plus-a-fixed-fee, cost-plus-an-incentive-fee, cost-sharing, labor hour, and time and material contracts.

(b) "Voucher" is used to identify claims by the contractor for reimbursement of costs incurred or for fee earned and relate to either interim request or final cost or fee remaining under the contract.

§ 24-50.102 Submission of vouchers.

Submission of vouchers shall be in accordance with the following: