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with the procedures in FIRMR 201– 32.206.

(53 FR 6068, Feb. 29, 1988; 53 FR 12748, Apr. 18, 1988)

other limits stipulated in the HCA's general delegation, to the Director, 00, for a delegation of ADP contracting authority. The Office of Operations will either conduct the acquisition or delegate special authority to the HCA to conduct the acquisition. (53 FR 6068, Feb. 29, 1988)

439.7002 Special delegation of author

ity. HCA's shall submit each prospective acquisition, which is greater than the limits of the blanket delegations of authority set forth in 439.7001 or any

PARTS 440-441-(RESERVED)

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Sec. 445.106 Government property clauses.

Subpart 445.3—Providing Government

Property to Contractors

445.302 Providing facilities. 445.302-1 Policy. 445.302–7 Optional property-related clauses

for facilities contracts.

Subpart 445.4-Contractor Use and Rental

of Government Property

442.102 Procedures.

(a) The Office of the Inspector General (OIG), Audit Division, has established a cross-servicing arrangement with the Defense Contract Audit Agency (DCAA) to provide contract audit services required by the FAR.

(b) All contract audit services required by contracting officers shall be coordinated through the cognizant OIG Regional Inspector General-Auditing (RIG-A). Cognizance is determined on the basis of the contractor's location. The OIG will, at its discretion, perform the audit with OIG personnel or refer the request to the DCAA if such would be more practical due to workload considerations or the location of the contractor. There is no charge for audit services coordinated through OIG.

(c) In order to ensure compliance with this requirement and to evaluate the results of audits, contracting officers shall forward to the RIG-A copies of all price negotiation memoranda prepared for contracts and contract modifications in excess of $500,000. (49 FR 12129, Mar. 28, 1984, and 50 FR 14197, A pr. 10, 1985)

445.403 Rental-Use and Charges Clause. 445.407 Non-Government use of plant equip

ment.

Subpart 445.6—Reporting, Redistribution

and Disposal of Contractor Inventory

445.608 Screening of contractor inventory. 445.608-6 Waiver of screening requirements.

AUTHORITY: 5 U.S.C. 301 and 40 U.S.C. 486(c).

SOURCE: 49 FR 12129, Mar. 28, 1984, unless otherwise noted.

Subpart 445.1-General

Subpart 442.7-Indirect Cost Rates

445.106 Government property clauses.

The contracting officer shall insert the clause at 452.245–70, GovernmentFurnished Property, in contracts in which Government property is furnished to the contractor.

442.704 Billing rates.

The contracting officer shall insert a clause substantially the same as the clause at 452.242–70, Estimated and Al

(53 FR 6069, Feb. 29, 1988)

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Subpart 445.3-Providing Govern- PART 446-QUALITY ASSURANCE ment Property to Contractors

Subpart 446.3-Contract Clauses 445.302 Providing facilities.

Sec. 445.302–1 Policy.

446.370 Inspection and acceptance. HCA's are authorized to make deter- Subpart 446.6—Material Inspection and minations for providing facilities to a

Receiving Reports contractor as prescribed in FAR 45.302–

446.601 Inspection and receiving. 1(a)(4).

446.602 Acceptance.

446.603 Inspection, acceptance, and receiv445.302–7 Optional property-related

ing certification. clauses for facilities contracts.

446.604 Distribution of material inspection The contracting officer shall insert a

and receiving reports. clause substantially the same as the

Subpart 446.7-Warranties clause at 452.245–71, Government Property-Facilities Use, in contracts to au- 446.704 Authority for use of warranties. thorize the contractor to use specified

446.708 Warranties of data. Government-owned facilities.

AUTHORITY: 5 U.S.C. 301 and 40 U.S.C.

486(c). (53 FR 6069, Feb. 29, 1988)

SOURCE: 49 FR 12129, Mar. 28, 1984, unless

otherwise noted. Subpart 445.4-Contractor Use

and Rental of Government Subpart 446.3-Contract Clauses Property

446.370 Inspection and acceptance. 445.403 Rental-Use and Charges The contracting officer shall insert a clause.

clause substantially the same as the HCA's are authorized to make deter

clause at 452.246–70, Inspection and Acminations for charging rent on the

ceptance, in contracts where inspection basis of use under the Use and Charges

and acceptance will be performed at clause in FAR 52.245–9 as prescribed in

the same location. The clause with its FAR 45.403(a).

Alternate I is for use when inspection

and acceptance will be performed at 445.407 Non-Government use of plant

different locations. equipment.

(53 FR 6069, Feb. 29, 1988) Requests for non-Government use of plant equipment as prescribed in FAR Subpart 446.6-Material 45.407 shall be submitted by the HCA to Inspection and Receiving Reports the Director, Office of Operations, for approval.

446.601 Inspection and receiving.

(a) The certification stated in 446.603 Subpart 445.6—Reporting, Redis

shall be inserted on each commercial tribution and Disposal of Con- shipping document or packing list for tractor Inventory

supplies or services and shall be signed by the authorized Government rep

resentative as required by FAR 445.608 Screening of contractor inven

46.401(f), except for small purchases tory.

(see FAR 46.404). 445.608-6 Waiver of screening require

(b) Form AD-838, Purchase Order, ments.

shall be used to comply with the re

quirements of FAR 46.406(f) and FAR Requests to waive screening require

46.404. ments as prescribed in FAR 45.608-6

(c) The certification required by shall be submitted by the HCA to the

446.601(a) shall be made at the place or Director, Office of Operations, for ap- places specified in the contract for perproval.

formance of Government quality assur

ance as required by FAR 46.401(b) and as prescribed in FAR 46.402 or FAR 46.403, as appropriate. 446.602 Acceptance.

(a) The certification stated in 446.603 shall be inserted on each commercial shipping document or packing list for supplies or services and signed by the authorized Government representative as required by FAR 46.501.

(b) The certification required by 446.602(a) shall be made at the place or places specified in the contract for Government acceptance as required by FAR 46.503.

(c) If the contracting officer elects to use a contractor's certificate of conformance as allowed by FAR 46.315 under the conditions prescribed by FAR 46.504, the certificate may be used as the basis for Government acceptance.

(d) Form AD-838, Purchase Order, shall be used to comply with the requirements of FAR 46.501.

tions deemed appropriate for application of warranty provisions. The recommendation shall address the criteria set forth at FAR 46.703 to document the basis on which a warranty is considered appropriate. The recommendation shall also identify the specific parts, subassemblies, assemblies, systems, or contract line items to which a warranty should apply.

(b) Before soliciting the requirement, the contracting officer shall make a written determination, subject to ap proval at a level above the contracting officer, whether to include a warranty contract clause. (50 FR 14200, Apr. 10, 1985)

446.708 Warranties of data.

Warranties of data shall be developed and used only after review and ap proval by OGC.

PART 447-TRANSPORTATION

Subpart 447.3- Transportation in Supply

Contracts

446.603 Inspection, acceptance and re

ceiving certification. As prescribed in this subpart, the following certification shall be inserted on commercial shipping documents or packing lists for supplies or services:

Sec. 447.302 Place of delivery-F.O.B. point. 447.305-10 Packing, marking, and consign

ment instructions. AUTHORITY: 5 U.S.C. 30 and 40 U.S.C. 486(c).

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Sec. 449.111 Review of proposed settlements.

Subpart 449.4-Termination for Default

deliverables (other than reports) are required.

(b) The contracting officer shall insert the clause at 452.247–72, Packing for Domestic Shipment, in contracts when item(s) will be delivered to a continental destination for immediate use, when the material specification or purchase description does not provide preservation, packaging, packing and/ or marking requirements and/or when the requiring activity has not cited a specific specification for packaging.

(c) The contracting officer shall insert the clause at 452.247–73, Packing for Overseas Shipment, in contracts when item(s) will be delivered to an overseas destination for immediate use, the material specification does not specify packing levels and the required activity has not specified such requirements.

449.402 Termination of fixed-price contracts

for default. 449.402–3 Procedure for default.

AUTHORITY: 5 U.S.C. 301 and 40 U.S.C. 486(c).

SOURCE: 49 FR 12130, Mar. 28, 1984, unless otherwise noted.

Subpart 449.1-General Principles

(53 FR 6069, Feb. 29, 1988)

PART 448-VALUE ENGINEERING

449.106 Fraud or other criminal con

duct. (a) Whenever fraud, such as falsified documents, false statements, or other criminal conduct related to the settlement of a terminated contract is suspected, the contracting officer shall discontinue negotiations and prepare a report of the facts. The report shall be submitted by the HCA to the Inspector General along with copies of documents or other information connected with the suspected violation(s). Concurrently, a copy of the report shall also be submitted to the Director, Office of Operations.

(b) Depending of the findings of the Inspector General, the HCA may initiate suspension of debarment action as prescribed in FAR Part 9.4 and Part 490.4 of this chapter.

AUTHORITY: 5 U.S.C. 301 and 40 U.S.C. 486(c).

Subpart 448.1 -Policies and

Procedures

448.102 Policies.

(a) USDA is exempt from the requirements of FAR Part 48, Value Engineering.

(b) HCA's are encouraged to implement value engineering programs in their contracting activities in accordance with FAR Part 48 when it has been determined by the HCA that such implementation is in the best interest of the Government.

449.107 Audit of prime contract settle

ment proposals and subcontract

settlements. Prime contractor settlement proposals and subcontract settlements requiring audit review in accordance with FAR 49.107 shall be referred to the Inspector General.

[49 FR 12130, Mar. 28, 1984, and 50 FR 14197, Apr. 10, 1985)

PART 449-TERMINATION OF

CONTRACTS

Subpart 449.1-General Principles

449.111 Review of proposed settle

ments. All proposed settlement agreements shall be reviewed and approved at a level above the contracting officer in accordance with contracting activity procedures. Settlement agreements of $50,000 or more shall be approved by the HCA.

Sec. 449.106 Fraud or other criminal conduct. 449.107 Audit of prime contract settlement

proposals and subcontract settlements.

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