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cost Schedule III (8-1)-------

$xx, XXX Schedule III (8-2)

XXX, XXX Schedule III (8-3).

XX, XXX Schedule III (b)-Schedule III(C)-

XX, XXX Schedule III (d)-

Total Schedule V--------- X, XXX, XXX NOTE: Individual item installation costs as set forth in Schedule III (2-1, 2-2, 8-3, b, c, and d) are to be excluded from Schedule III subtotals and totals. Such totals should be entered as Schedule V, Machinery and Equipment Installation Costs. Direct costs only are to be included in Schedule V. Indirect costs pertaining to installation are to be included in Schedule VI.

SCHEDULE VI—INDIRECT COSTS (Set forth the estimated amount of indirect costs allocable to this expansion for which the contractors will request reimbursement, broken down by types.)

Include a brief explanation as to the contractor's proposed method of allocating indirect cost to the facilities - work, which should conform with the requirements of Subpart G, Part 3 and Part 15 of this title. Proposed provisional rates for use should be shown if possible. Any deviation from contractor's method for allocating indirect costs on contractor-owned facilities should be explained and justified.

Total Schedule VI.------

Grand total all schedules. 2, 2, (24 F.R. 7018, Aug. 29, 1959) & 1013.2406 Allowability of items under

facilities and procurement contracts. Section 13.303 of this title provides that the industrial facilities capital type costs

are not allowable under procurement contracts without contractual authority. Section 13.101–8 of this title and $ 1013.101-6 define what industrial facilities are. The list set forth in § 1013.2406–1 will assist in identifying industrial facilities items, or items chargeable to procurement contracts, and in making determinations as to allowability under specific contracts. Since industrial facilities are normally provided by the contractor, the inclusion of an item in § 1013.2406–1 as allowable under a facilities contract is no indication that the Government will provide it in any given case. Questions as to the proper classification of items not listed in § 1013.2406–1 will be decided by the contracting officer effecting the procurement, administering the contract, redetermining the price, or settling a termination. Decisions must be based upon application of the above cited definitions to the particular facts of each case. In doubtful cases the question should be referred to MCPBI, Hą AMC, with a complete explanation for resolution prior to proceeding with the item. [24 F.R. 1015, Aug. 29, 1959, as amended at 30 F.R. 16265, Dec. 30, 1965] & 1013.2406–1 List of items allowable

under facilities and supplies con

tracts. In plants of mixed ownership, government and private, allowability will be determined by ownership of the particular area involved.

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Schedule I-Land and land prepa-

(a) Land..
b) Land preparation..
1. Clearing ------

do... 2. Grading.---

3. Drainage. Schedule II-Buildings, etc. (capital value increases);

(8-1) Building and test cells... ---do.----(a-2) Building rehabilitation ---do...

and alterations.
(b) Building installations

(not mechanical)
1. Plumbing.--.
2. Ventilation...

---------do. 3. Power wiring..

do.. 4. Sprinkler system.--

do.. 5. Heating.-


- do.. · Except as specifically authorized in facilities contract.

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Facilities contract


Supply contract









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Schedulo II–Buildings, etc.-Oon. (b) Building Installations

(not mechanical)-Oon, 6. Electric ligbting...---..

(Severable units such as

unit heaters, ligbt fir-
tures, and transform-
ers, excluding installa-
tion costs may be al-
lowed without requir-
ing exception to

$ 13.307 of this title.)
7. Test rooms, i.e., altitude | NOT...

chambers, cold rooms.
8. Air conditioning (except ----do-------

for processing only)
9. Other nonseverable fa-

(C-1) Land installations (on site).
1. Yard paying..-.

2. Runways and ta
3. Railway siding.-----
4. Utilities.

5. Fencing...
(0-2) Land installation (off site).

1. Access roadway....
2. Railroad spur....
3. Utilities extension..

4. Utilities.....
Schedule III–Machinery and
(a-1) Machinery:
í. Standard (general pur-

pose machine tools):
8. Metal cutting...----
b. Forming -
C. Blanking...---

d. Riveting..---
2. Standard types for. do....
specific industry (i.e.,

3. Special or single pur-

pose machinery:
a. Contractor d
b. Noncontractor de-

4. Machine tool accessories:
a. Dividing head...
b. Taper attachment..
6. Special tooling:

a. Jigs and fixtures....
b. Dies...
C. Broaches, drills

milling, cutters,
tool holders,

grinding wbeel
d. Snap gages, height

.do gages, calipers,

(8-2) Related production

1. Electric welding ma- | Yes

| Yes...-----
2. Heat treating equip- ----- .do....--------
3. Plating equipment.--------
4. Anodizing equipment.

do... (a-3) Rehabilitation of used

machine tools and re-
lated production
equipment (subhead.
ings and allowability
same as in III (8-1)

and (8-2).
1 Except as specifically authorized in facilities contract.

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Schedule III–Machinery and
(b) Building installations (me-

1. Oranes.-----

Yes (excluding supports Yes (including crane
and rails).

supports and rails).
2. Hoists (air and electric)--| Yes..
3. Ventilating and exhaust |-----do... 4. Conveyors..-----------------do-----------------------0----------------(c) Laboratory and testing Yes (standard items but | Yes (standard items but Yes (if the items are of

equipment (quality con subject to the limita subject to the limita such short duration trol.)

tions of $ 1013.102-3 tions of $ 1013.102-3 or low unit cost as (a) (7) of this part). (a)(7) of this part). would normally not be

capitalized by the con. tractor and are reim. bursable in accordance with Part 15 of this

1. Electronic testing equip-

8. Oscilloscopes.-------
b. Voltmeter, amme-

c. Signal generators..
2. Hardness testers...-

3. Laboratory ovens.----
Metallurgy spectro-
graphs and other related

5. Optical comparators...
6. Standard gages and in-

spection equipment.
(d) Furniture and equipment:
1. Office equipment and

2. Standard steel work -----do

benches and shelving.
3. Standard steel lockers..
4. Cafeteria equipment (ex-

cluding dishes, pans,

5. Hospital equipment.--------do-------

6. Time clocks and card

racks. Schedule IV-Portable tools, ma

terial handling and automotive equipment: (a) Portable tools: 1. Powered: riveters; im- | Yes (if standard com- | Yes (if standard com- | Yes (if only normal life

pact wrenches; screw mercial types with life mercial types with life is less than 4 years or
drivers; drills.

in excess of 4 years on in excess of 4 years on unit cost less than $50).
& 2-shift, 5-day week & 2-shift, 5-day week
basis and unit cost in basis and unit cost in
excess of $500).

excess of $500).
2. Hand tools...

N o .-------------------

Yes (if the items are of

such short life duration or low unit cost as would not be capitalized by the contractor and are reimbursable in accordance with

Part 15 of this title). (b) Material handling and

automotive equipment:
1. Forklift trucks..

2. Tractor, warehouse.. 3. Trucks, standard types. I -----do..

Yes (totally Government

owned plants only).
4. Fire trucks, crash..----- Yes (see Subpart GG of Yes...

1 this part).
5. Trucks, gasoline...-


Do. 6. Sedans, station wagons -----do...... Schedule V-Installation costs Yes..--

Yes (with suitable clause (schedule III and IV items).

in supply contract, if no facilities contract).

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Schedule VI-Indirect costs allo Yes (Lf authorized by Yes (if authorized by No (except in accordance cable to Government facilities. facilities contract in facilities contract in with special supply

accordance with Part accordance with Part contract provisions as
15 of this title).
15 of this title).

& substitution for reim-
bursement under the
facilities contract when

consistent with con. Other costs:

tractor's approved acPreproduction costs:

counting system).
Plant and office rearrange | No.--------------- No...
ment. (Includes light

fixtures, plumbing, etc.).
Plant rehabilitation...----- -----do........

Yes (II a-2)...-------- No.
Plant layout and engi: 1

neering costs.
Plant reconversion costs...
Machine tool rehabilita.

Yes (with suitable clause tion from Government

in supply contract, if Reserves (III 8-3).

no facilities contract). Rehabilitation of privately owned

property. [ 24 F.R. 7016, Aug. 29, 1959, as amended at 30 F.R. 16265, Dec. 30, 1965) Subpart Y-Industrial Real Prop- tems Division; as well as the Foreign erty—Construction, Rehabilitation,

Technology Division and the Aerospace

Medical Division. Modification and Alteration

(c) Under the surveillance of Deputy SOURCE: The provisions of this Subpart Y

Chief of Staff, Systems and Logistics, appear at 27 F.R. 11763, Nov. 29, 1962, unless

Hq USAF, AFSC is responsible for the otherwise noted.

over-all management of the AF indus§ 1013.2500 Scope of subpart.

trial facilities programs. The IndusThis subpart establishes a standard

trial Facilities and Property Administraprocedure for obtaining approvals of

tion Division (SCKMI), Hq AFSC, is the

responsible office. The industrial faciliconstruction, modification, alteration,

ties activity of the AFSC division will additions and rehabilitation to industrial

manage the industrial facilities program. real property owned or under the cog

[27 F.R. 11763, Nov. 29, 1962, as amended at nizance or jurisdiction of the Air Force

30 F.R. 13636, Oct. 27, 1965; 31 F.R. 2687, Feb. which is operated by a contractor.

12, 1966) f 1013.2501 Applicability of subpart. § 1013.2502 Definitions.

This subpart applies to all commands (a) Construction, as differentiated (Con US), buying divisions, AFCMD from rehabilitation, includes new conand AF plant representatives, participat- struction, modification and alteration of, ing in the industrial facilities expansion and additions to, industrial facilities. program.

(b) New construction: Erection or as(a) This subpart does not cover all sembly of a new facility separate and contract requirements for construction,

apart from an existing facility. modification, alteration, addition, or re

(c) Modification: Any work in a facilhabilitation projects. Therefore, the

ity which does not change its size or contracting officer will be governed by all

dimensions, which changes the function

or use for which it was originally inapplicable terms of the governing con

tended or is presently being used. tracts. The labor provisions in the

(d) Alteration: Any work on a facility governing contracts applicable to con

which involves structural change and struction work will be particularly noted

which changes the present function or and enforced.

usage. (b) Reference to “cognizant division" (e) Addition: Any external extension in this subpart applies to all the major of a facility which increases its geometridivisions of AFSC: Aeronautical Systems cal dimensions, which may be required Division; Ballistic Systems Division for the improvement of functional capaElectronic Systems Division; Space Sys- bility or the expansion of capability.

(f) Rehabilitation (capital type, abnormal or nonrecurring maintenance): Covers those projects which require extensive repairs or replacement and the cost is normally capitalized in privatelyowned industries. Work performed on real property to maintain it in good physical condition will not be classified as rehabilitation, e.g., painting, patching or plaster, walkways, pavements, or roofing; replacement of defective light bulbs and electrical switches; servicing of nonseverable mechanical and electrical equipment; and inspection and repair of utility systems as required to insure continued operation.

(g) Emergency repair: Urgent repair work on facilities damaged by an “excepted peril.”

(h) Major projects: All work of a capital nature, (such as additions, new construction, modification, alteration, rehabilitation, or abnormal maintenance projects) which materially affects the structure, capacity, or capability of the real property whether the work is to be performed by Government or contractor funds.

(i) Minor projects: Those projects consisting of items or groups of items which are of addition, modification, alteration or abnormal maintenance nature which do not materially affect the structure, capacity of capability of the facility, building or structure on which the work is to be accomplished, regardless of costs.

(j) Normal maintenance: The term normal maintenance is not used in this subchapter, however, it is used in connection with the administration of the contract in a manner as to have bearing on the requirements set forth herein. Such maintenance is normally expensed by the contractor, is not a capital type obligation, and is not reimbursable under the facilities contract.

(k) Technical supervision: Evaluation, approval of plans and specifications, supervision and inspection of expansions, changes, or alterations of any AF industrial property operated by a contractor under a facilities contract, will be the responsibility of the facilities contracting officer. Arrangements for technical assistance in reviewing facility projects will be accomplished by the facilities contracting officer, when appropriate, with local AF laboratories, offices

of the judge advocate and civil engineer, or any other available DOD technical service or agency. [27 F.R. 11763, Nov. 29, 1962, as amended at 30 F.R. 13636, Oct, 27, 1966] § 1013.2503 General provisions.

(a) All Government-owned real property operated by a contractor under a separate facilities contract will receive over-all program management from the industrial facilities organization of the AFSC division. The cognizant facilities contracting officer will insure that proper and adequate contractual coverage, adequate and effective engineering supervision is provided, and that the necessary coordination of projects within the Department of Defense is obtained from Hq USAF through AFSC (SCKMI) when required, according to current regulations and directives.

(b) All construction, rehabilitation, and/or abnormal maintenance projects must be approved by the cognizant division, whether the work is to be perform with Government or contractor funds.

(c) All projects to be accomplished at an industrial facility under a facilities contract with Government-appropriated funds will be reviewed at the time application for the requirement is submitted in the appendix A. Such appendix A will be submitted according to procedures set forth in Subpart X of this part. At this time a determination will be made by the cognizant division that the project, or projects, are either “major" or "minor" projects. Sufficient general data will be contained in the justification for the projects to permit assignment of either a “major" or "minor" project classification.

(d) In cases where the contractor is to accomplish the work at his own expense and the costs involved to be written off, for Government contract costing purposes, such costs will be processed by the contractor through his normal approved accounting practices. Allocation of such costs will be subject to approval by the administrative contracting officer. When depreciation for such investments by the contractor is greater than that normally allowed, Hq USAF approval must be secured.

(e) For all construction and/or building rehabilitation projects, to be accomplished at industrial facilities under a facilities contract with appropriated

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