(b) In situations affecting one or both of the other military departments, removal arrangements should be similarly coordinated, where practicable, by the procuring activities involved, with representatives of other military departments. § 1212.1505 Avoidance of detrimental incidents. It is emphasized that the express policy of the Department of Defense with respect to the removal of items from facilities affected by work stoppages is to avoid the use of force or the appearance of force, and care will be taken to prevent the occurrence of incidents detrimental to harmonious relations with labor and management. Subpart P-Procurement of Stevedoring Services During Labor Disputes [Reserved] Sec. 1213.1502 Exchange of personal property and application of proceeds to purchase of similar items. 1213.1502-1 Authorization. 1213.1503 Sales, gifts and loan of drawings and certain other property. Subpart P-Research and Development 1213.1601 Loan of equipment. AUTHORITY: The provisions of this Part 1213 issued under R.S. 161, sec. (2a), 72 Stat. 514, secs. 2202, 2301, 2314, sec. 1, 76 Stat. 528; 5 U.S.C. 22, 171a (c), 10 U.S.C. 2202, 2301-2314; DoD Directive 5105.22, November 6, 1961. SOURCE: The provisions of this Part 1213 appear at 28 F.R. 2659, Mar. 19, 1963, unless otherwise noted. Subpart A-General § 1213.102 General policy. § 1213.102-3 Facilities. (a) Protection of Government's interest in facilities. (1) Every contracting officer in negotiating or in making a supply contract shall make sure that any payments for the purpose of, or in aid in the acquisition of, facilities which are not of the type commonly classified as expendable, are separately and clearly set forth and not buried or otherwise hidden in a lump price. No payments under any contracts shall be made on account of facilities, in excess of proper depreciation, unless the interest of the Government in such facilities is recognized and protected by the contract. (2) Just what constitutes such protection of the interest of the Government will vary in each individual case and will depend upon the nature of the facilities. Usually, it will be necessary to assure the Government of the privilege of having the facility used in the performance of Government contracts, free of any charge for the use of the part of the facility paid for by the Government and also to have some agreement as to the disposition of the interest of the Government in the facility. Provision should be made that the contractor: (i) Maintain the facility in good condition; (ii) Attach no lien nor convey to another all or any portion of the facility; (iii) Make no material alteration in the nature of the facility; (iv) Give priority to orders; and Government (v) Not include in any supply price any depreciation or amortization of the part of the facility paid for by the Government. All procurement officers must be sure in making a contract, the fulfillment of which may require the use of a facility covered by an agreement to the effect that no depreciation or amortization of such facility shall be included in the price, that such agreement is unmistakably adhered to and that depreciation and amortization of such facility are definitely excluded from the price. Subpart B-Material [Reserved] Subpart C-Special Tooling Subpart D-Industrial Facilities Subpart E-Contract Clauses § 1213.502 Government-furnished property clause for fixed-price contracts. § 1213.502-50 Government furnished property clause for fixed-price construction contracts. The clause prescribed in § 13.502 of this title, modified only where necessary to make it applicable to construction, shall be used in fixed-price contracts, for construction, alteration, or repair of buildings, bridges, roads, or other kinds of real property, under which the DSA is to furnish to the contractor, material, special tooling, or industrial facilities. § 1213.503-50 Government property clause for cost-reimbursement type construction contracts. The clause prescribed in § 13.503 of this title, modified only where necessary to make it applicable to construction contracts, shall be used in cost-reimbursement type contracts, for construction, alteration or repair of buildings, bridges, roads, or other kinds of real property under which the DSA is to furnish to the contractor, material, special tooling, or industrial facilities. of this title, but is not for the use in contracts in which special tooling is called for as a separate item in the schedule. § 1213.550 Government-furnished property-short form. The following clause may be used in fixed-price contracts, not in excess of $1,000; or contracts for construction, alterations, or repair of buildings, bridges, roads or other kinds of real property and appurtenances when the value of the property (estimated, if not known) to be furnished is not in excess of $1,000. GOVERNMENT FURNISHED 1962) PROPERTY (JULY (1) The Government shall deliver to the Contractor, for use in connection with and under the terms of his contract, the property which the schedule or specifications state the Government will furnish (hereinafter referred to as "Government-furnished property"). (2) Title to the Government-furnished property shall remain in the Government. The contractor shall maintain adequate property control records of Governmentfurnished property in accordance with the provisions of Appendix B "Manual for the Control of Government Property in the Possession of Contractors" of Subchapter A of Chapter I of this title. (3) Except for reasonable wear and tear, depreciation or the utilization of the Government-furnished property in connection with the contract, the contractor shall be liable for any loss or destruction of or damage to such property and shall return any unused residue thereof to the Government. Subpart F-Lease of Government Owned Industrial Facilities Primarily for Non-Defense Use [Reserved] Subpart G-Use of GovernmentOwned Industrial Facilities and Special Tooling on Work for Foreign Governments Heads of procuring activities are authorized to approve the sale to employees, both contractor and governmental, engaged in military production or construction, any uniforms, safety clothing and equipment, plant protective clothing, and other special articles necessary in the production or operation of national defense industries or establishments. § 1213.1502 Exchange of personal property and application of proceeds to purchase of similar items. § 1213.1502-1 Authorization. (a) Heads of procuring activities are authorized, with authority to make such successive redelegations as deemed appropriate, to exchange personal property and to apply the exchange allowance thereof to the acquisition of similar property. This authorization is subject to the following conditions: (1) The items exchanged are similar to the items acquired (see paragraph (b) of this section, for explanation of the word similar): (2) The items exchanged are not excess, and the items acquired are needed in the conduct of approved programs; (3) The items acquired are to be used (whether or not intended for additional uses) in the performance of all or substantially all of the tasks or operations in which the items exchanged would otherwise be used, but the items acquired need not be the same in number nor used in the same location as the items ex-changed: Provided, That the limitation prescribed in this section shall not apply with respect to parts or containers: And provided further, That detailed crossreference between old and new items will not be required in the absence of specific requirements of law. In the absence of -such cross-reference, however, there shall be made available to the General Accounting Office sufficient data to establish that the items acquired were similar to the items exchanged and that any exchange allowances applied in whole or part payment for property acquired were in fact available for such application, and that the transaction was otherwise in accordance with the provisions of this procedure; (4) There has been at the time of exchange a written administrative deter mination to apply the exchange allowance in acquiring property in accordance with this section; and (5) The transaction will foster the economical and efficient accomplishment of an approved program. (b) The item of personal property to be exchanged and the item to be acquired shall be deemed "similar" for the purpose of this section when (1) Both fall within any one of the categories listed below; (2) In the case of personal property not falling within the categories listed in paragraph (c) of this section, the item to be acquired is designed and constructed for the same specific purpose as the item to be exchanged; or (3) Both constitute containers for items which are similar within the meaning of subparagraph (2) of this paragraph; or (4) Both constitute parts for items which are similar within the meaning of subparagraph (1) or (2) of this paragraph. (c) The following list of items is authorized to be exchanged or acquired in accordance with this section: 1. Agriculture products, processed foods, and forage. 2. Air-conditioning units, office and residential. 3. Air-conditioning units, industrial. 4. Ambulances, all sizes. 5. Ammunition and ammunition components. 6. Animals and animal products. 7. Asphalt distributors. 8. Asphalt pavers, portable or road mix. 9. Batteries, storage. 10. Bicycles; tricycles. 11. Binoculars; fieldglasses, telescopes. -12. Boilers, steam. 13. Busses, all sizes. 14. Cards, tabulating. 15. Compressors, air, portable. 16. Compressors, air, stationary. 17. Crawlers, wheel mounted, and railroad cranes (including shovels and drag lines). 18. Crane trucks, industrial warehouse, electric and gasoline powered. 19. Ditching machines. 20. Dozer blades. 21. Drill presses. 22. Earth augers. 23. Fans, electric. 24. Graders, self-powered and towed. 25. Lathes. 26. Machines, adding; machines, calculating. 27. Machines, addressing and mailing. 28. Machines, dictating and transcribing. 29. Machines, duplicating. 30. Machines, punched card, bookkeeping, tabulating and accounting. 46. Road rollers, wheeled and sheep's foot. 47. Saws, bench. 48. Scrapers, earthmoving (selfpowered). 40. Scrapers, earthmoving, towed. 50. Sedans; station wagons, coupes; limousines. 51. Snow plows, motorized. 52. Spreaders, aggregate and lime. 53. Tractors, warehouse. 54. Tractors, wheeled or crawler, with or without special attachments, up to 65 hp. 55. Tractors, wheeled or crawler, with or without special attachments, 65 hp. and up. 56. Trailers, general-purpose, multiple axle. 57. Trailers, general purpose, single axle. 58. Trailers, industrial. 59. Trailers, special purpose (including fire pumper and Bean-type sprayer and crash trailer). 60. Trailers, tank mounted. 61. Trucks, electronic. 62. Trucks, fire. 63. Trucks, forklift. 64. Trucks, general purpose, cargo and construction, 12,500 GVW through 28,000 GVW (including truck tractors, dump, multiple drive, etc.). 65. Trucks, general-purpose and utility up to 12,500 GVW (including suburbans, carryalls, and sedan deliveries). 66. Trucks, straddle. 67. Trucks, tank (special purpose trailer, of which the tank is an integral part of the construction). 68. Trucks, warehouse, platform electric and gasoline powered. 69. Typewriters, manual, and electric. (d) Stock Fund and Industrial Fund Property and other property not included in the 69 categories in paragraph (c) of this section shall not be eligible for exchange action. (e) Section 1213.1502 shall not be construed to authorize (1) The acquisition of personal property by a procuring activity when such acquisition is not otherwise authorized by law. (2) The acquisition of personal property by a procuring activity in contravention of (i) any restriction upon the procurement of a commodity or commodities or (ii) any replacement policy or standard, prescribed by the President, the Congress, or by the Administrator of General Services. (3) The purchase or acquisition of personal property other than under a consolidated purchasing or stores program or Federal Supply Schedule contract where procurement under such program or contract is required by regulations or other directives prescribed by the Administrator: Provided, That a procuring activity acquiring an item or items under and in accordance with such program or contract may exchange similar items and apply the exchange allowance as provided herein. (4) The transfer, or exchange of excess or surplus property in connection with the purchase or acquisition of personal property: Provided, That a procuring activity obtaining items of excess or surplus property as authorized by law may thereafter exchange such items and apply the exchange allowance as provided herein. (5) The transfer or exchange of strategic or critical materials, or reserved materials. (6) The transfer or exchange of narcotics. (7) The transfer or exchange of scrap. § 1213.1503 Sales, gifts, and loan of drawings and certain other property.. (a) The heads of procuring activities are authorized to sell, give, or lend drawings, manufacturing and other information, and samples of supplies and equipment to be manufactured or furnished, to contractors and private firms which are or may likely be manufacturers or furnishers of supplies and equipment for use under approved production plans, whenever they determine that such action is necessary in the interest of national defense: Provided, however, That no sale or gift of such items shall be made if the item is to be the subject of recurring procurement, and would be suitable for the purpose for which purchased by the Government, and not obsolete, after serving as a sample, pattern, or guide to a manufacturer or supplier. (b) Such drawings, manufacturing and other information, and samples of supplies and equipment to be manufactured or furnished shall be sold, given or loaned by appropriate written agreement, reciting the above determination (10 U.S.C. 4506). (c) The foregoing determination and requirement for a written agreement will not be mandatory in the case of invitations for bids and requests for proposals. Drawings, specifications, and data furnished need not be returned unless otherwise directed by the contracting officer. (1) The determination to request the return of such specifications, drawings, of any other data furnished the contracting officer, should take into consideration the following factors: (i) The current or probable future need of the Government for the items. (ii) The residual value of such items. (iii) Administrative and other expenses incident to handling and storage of such items. (iv) The probable cost of reproduction of such items in event of future procurement. (2) Classified material as a general rule will be required to be returned regardless of the criteria established above. Subpart P-Research and § 1213.1601 Loan of equipment. Government property acquired for research and development may be loaned to private industrial firms and educational institutions for use in privately financed research and development programs, if such programs are of interest to the Government, and the results of the research will be furnished the Government without cost to the Government. Any such loan should be reflected in a written agreement setting forth the terms of the loan, and the benefits to be derived by the Government. Sec. PART 1214-INSPECTION AND ACCEPTANCE Subpart A-Inspection 1214.101 General. 1214.104 Contractor responsibility. Subpart B-Acceptance 1214.205 Acceptance of supplies or services not conforming with contract requirements. AUTHORITY: The provisions of this Part 1214 issued under R.S. 161, sec. 2(a), 72 Stat. 514, secs. 2202, 2301, 2314, 70A Stat. 120, 127, sec. (a) The determination of conformance of supplies and services to contract requirements will be made on the basis of objective evidence of quality and quantity. Optimum use shall be made of quality data generated by contractors in determining acceptability of supplies and services. To the extent that contractor quality data are available and reliable, these data shall be used to adjust the amount of Government inspection and verification to a minimum consistent with proper assurance that supplies and services accepted conform to contract requirements. (b) The amount of inspection will depend upon the importance of items, the importance of individual characteristics, and the past quality performance of contractors. (c) Sampling procedures shall be used to the maximum extent consistent with required protection of the interest of the Government. § 1214.104 Contractor responsibility. (a) Specifications-examinations and tests. Where existing specifications do not contain complete and definite quality assurance provisions, the contracting officer will determine such examinations and tests as are necessary and include this information in invitations for bid or requests for proposals and subsequent contracts. (b) Specification-Part 1204 requirements. The contracting officer will include a statement which clearly sets forth which examinations and tests are to be performed by the supplier and those tests and inspections which may be accomplished by the Government, under Part 1204 of this subchapter of all new specifications and revisions or amendments to existing specifications. Subpart B-Acceptance |