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NOTE: Individual item installation costs as set forth in Schedule III(a−1, a−2, a-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_____--- $XXX, XXX Grand total all schedules. x, XXX, XXX [24 F.R. 7013, 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, Hq 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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[24 F.R. 7015, Aug. 29, 1959, as amended at 30 F.R. 16265, Dec. 30, 1965]

Subpart Y-Industrial Real Prop

erty-Construction, Rehabilitation, Modification and Alteration

SOURCE: The provisions of this Subpart Y appear at 27 F.R. 11763, Nov. 29, 1962, unless otherwise noted.

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This subpart establishes a standard procedure for obtaining approvals of construction, modification, alteration, additions and rehabilitation to industrial real property owned or under the cognizance or jurisdiction of the Air Force which is operated by a contractor.

§ 1013.2501 Applicability of subpart.

This subpart applies to all commands (Con US), buying divisions, AFCMD, and AF plant representatives, participating in the industrial facilities expansion program.

(a) This subpart does not cover all contract requirements for construction, modification, alteration, addition, or rehabilitation projects. Therefore, the contracting officer will be governed by all applicable terms of the governing contracts. The labor provisions in the governing contracts applicable to construction work will be particularly noted and enforced.

(b) Reference to "cognizant division" in this subpart applies to all the major divisions of AFSC: Aeronautical Systems Division; Ballistic Systems Division; Electronic Systems Division; Space Sys

Yes (with suitable clause

in supply contract, if no facilities contract). No.

tems Division; as well as the Foreign Technology Division and the Aerospace Medical Division.

(c) Under the surveillance of Deputy Chief of Staff, Systems and Logistics, Hq USAF, AFSC is responsible for the over-all management of the AF industrial facilities programs. The Industrial Facilities and Property Administration Division (SCKMI), Hq AFSC, is the responsible office. The industrial facilities activity of the AFSC division will manage the industrial facilities program. [27 F.R. 11763, Nov. 29, 1962, as amended at 30 F.R. 13636, Oct. 27, 1965; 31 F.R. 2687, Feb. 12, 1966]

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(a) Construction, differentiated from rehabilitation, includes new construction, modification and alteration of, and additions to, industrial facilities.

(b) New construction: Erection or assembly of a new facility separate and apart from an existing facility.

(c) Modification: Any work in a facility which does not change its size or dimensions, which changes the function or use for which it was originally intended or is presently being used.

(d) Alteration: Any work on a facility which involves structural change and which changes the present function or usage.

(e) Addition: Any external extension of a facility which increases its geometrical dimensions, which may be required for the improvement of functional capability 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, 1965]

§ 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 performed 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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