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In research and development contracts with commercial organizations, the clauses relating to property furnished by the Government or acquired by the contractor at Government expense are the same as those used in other types of contracts. (See §§ 13.502 and 13.503 of this chapter.) Different clauses are prescribed for use in research and development contracts with educational or other nonprofit institutions where no profit or fee is involved. (See §§ 13.505 and 13.506 of this chapter.)

§ 4.214-2 Control of government prop; erty in possession of research and development contractors.

The basic requirements to be observed by the Departments for establishing and maintaining control over Government Property as set forth in § 30.2 of this chapter are applicable to research and development contracts except, in contracts with educational or other nonprofit organizations (executed on a nonprofit basis), § 30.3 of this chapter is applicable.

§ 4.214-3 Nonseverable facilities.

Under 10 U.S.C. 2353, construction or acquisition of nonseverable research, developmental, or test facilities is authorized under certain conditions.

§ 4.214-4 Transfer of title to equipment to nonprofit educational or research institutions.

(a) General. This section implements 42 U.S.C. 1892 which gives the Department of Defense discretionary authority to vest in nonprofit institutions of higher education or nonprofit organizations whose primary purpose is the conduct of scientific research, without further obligation to the Government or on such other terms and conditions as may be appropriate, title to equipment purchased with funds available for grants or contracts for the conduct of basic or applied research.

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nation of the record-keeping required when the Government retains title to equipment furnished or purchased under a research contract, in those cases where the cost of such record-keeping to the contractor or to the Government is out of proportion to the value of the equipment. It is further intended to reduce where desirable the time and labor involved in formally circulating through the Government long lists of highly specialized or minor items of equipment or in relocating major equipment when such relocation is impracticable or uneconomical and not required for other research programs of the Government. Finally, it is intended to provide a measure of administrative flexibility when, from the standpoint of increased research effectiveness and in the absence of other Departmental or Governmental requirements, it is desirable to transfer title to equipment to such research contractors.

(c) Transfer of title. (1) Contracts with nonprofit institutions of higher education or nonprofit organizations whose primary purpose is the conduct of scientific research may provide, or may be amended to provide, that the contracting officer may transfer title to equipment to the contractor. Such transfer of title may be effected at the beginning, during the course of, or at the end of a contract: Provided,

(i) The equipment was purchased with grant or contract funds allocated for basic or applied scientific research;

(ii) (a) Either the retention of title in the Government would create an administrative burden not warranted by the value of the equipment, or the keeping of inventory and records by the contractor would become prohibitively complicated or expensive; or

(b) It would be impractical or uneconomical to remove the equipment from the contractor's plant;

(iii) The transfer of title will further the scientific research objectives of the Department concerned; and

(iv) The transfer of title is not precluded by controls governing the equipment involved.

(2) The contracting officer may, when provision is made therefor by contract, vest in the contractor title to any item of equipment having an acquisition cost of $3,000 or less, following his written determination that the criteria in

subparagraph (1) of this paragraph have been met. When the acquisition cost of an item of equipment is in excess of $3,000, the contracting officer may transfer title to the contractor upon written approval of the head of the procuring activity or his designee. Such approval shall be given on the basis of the criteria in subparagraph (1) of this paragraph and only after considering whether transfer of title is consistent with any known need of the Department concerned. (No formal screening is required.) In addition, for items of equipment having an acquisition cost in excess of $25,000, the approval of designated representatives of the Departments must be secured. Such approval shall be given within sixty (60) days, but only after a reasonable check, commensurate with the value of the item involved, has established that there is no known requirement for the item within the respective Departments.

Where title to equipment is vested pursuant to subparagraph (1) of this paragraph, the contractor shall be without further obligation to the Government with respect to such equipment, except that the contractor must agree, as a condition to taking title, that no charge will be made to the Government for any depreciation, amortization, or use charge with respect to such equipment under any existing or future Government contract.

(d) Contract clauses. Where it is anticipated that in connection with a contract, title to equipment may be vested in the contractor in accordance with this section, the alternate paragraph (c) of the clause in § 13.505 of this chapter shall be included in fixed-price type contracts, and the addition to paragraph (c) of the clause in § 13.506 of this chapter shall be included in costreimbursement contracts.

In the case of the Department of the Army, the designee is Army Research Office, Office Chief of Research and Development, Washington 25, D.C.

In case of the Department of the Navy, the designee is Chief of Naval Research, Office of Naval Research, Washington 25, D.C.

In the case of the Department of the Air Force, the designee is Commander. Office of Aerospace Research, Washington 25, D.C.

In the case of the Defense Supply Agency, the designee is Executive Director for Supply Operations, Defense Supply Agency, Washington 25, D.C.

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Public Law 85-765, as amended, commonly known as the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906), provides certain restrictions on the procurement of livestock products by Federal Agencies and instrumentalities. The Act states the policy of the United States to be that the slaughtering of livestock, and the handling of livestock in connection with slaughter, shall be carried out only by humane methods. In essence, the Act prohibits the purchase by the Federal Government of livestock products produced or processed by any slaughterer or processor which in any of its plants (or in the plants of an affiliated slaughterer or processor) slaughters, or handles in connection with slaughter, livestock by any method other than humane. Further, the Act requires a supplier to make a statement concerning his eligibility under the Act to supply livestock products, the statement to be such that the maker will be subject to prosecution if the statement is false.

§ 4.602 Definition of livestock products.

As used in this subpart, "livestock products" means any article of food, or any article for or capable of being used as food, for either humans or animals, which is derived or prepared, in whole or in part, from slaughtered cattle, calves, horses, mules, sheep, swine. or goats. Livestock products do not include (a) supplies, the animal product portion of which is less than five percent by weight of the net unit weight, and (b) poultry.

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§ 4.604 Procedures.

Proposed suppliers of livestock products shall be informed of the requirements of the Humane Slaughter Act and shall be required to furnish a statement of eligibility in accordance with paragraphs (a), (b), or (c) of this section.

(a) Except as provided in paragraphs (b) and (c) of this section, the Statement of Eligibility, set forth in § 4.605, shall be included in all invitations for bids, requests for proposals, and other contractual documents for livestock products, and shall be required to be duly signed by the contractor.

(b) Where small purchases are involved (see Subpart F, Part 3 of this chapter), it will be sufficient if, as part of the purchase documentation, the contractor furnishes over his signature, only paragraph (a) of the Statement of Eligibility set forth in § 4.605.

(c) When frequent purchases are made from the same contractor or the contracting officer deems it otherwise appropriate, the Statement of Eligibility contained in § 4.605 may be obtained from the contractor at reasonable intervals, but not less often than annually. When such statement has been obtained, the clause set forth in § 4.606 shall be inserted, in lieu of the Statement of Eligibility, in all contracts or purchase orders issued to the contractor. § 4.605 Statement of eligibility.

STATEMENT OF ELIGIBILITY (HUMANE
SLAUGHTER ACT) (JAN. 1961)

(a) The Supplier (Contractor) agrees that livestock products sold to the Government, except products produced or processed from livestock slaughtered outside the United States, its possessions, and Puerto Rico, conform to the requirements of the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906).

(b) "Livestock products" means any article of food, or any article intended for or capable of being used as food, for either humans or animals, which is derived or prepared, in whole or in part, from slaughtered livestock, namely, cattle, calves, horses, mules, sheep, swine, or goats. Livestock products do not include: (1) supplies, the animal product portion of which is less than five percent (5%) by weight of the net unit weight, and (11) poultry.

(c) A slaughterer or processor shall be deemed to be affiliated with another slaughterer or processor if he controls, or is controlled by, or is under common control with, such other slaughterer or processor.

(d) Livestock products which conform to the requirements of the Humane Slaughter

Act of 1958 are products which have been produced and processed either:

(1) By those slaughterers and processors which, in all of their plants and in all of the plants of slaughterers and processors with which they are affiliated, slaughter and handle in connection with slaughter, livestock only by methods designated as humane by the Secretary of Agriculture; or

(2) From livestock slaughtered in accordance with the ritual requirements of the Jewish faith or any other religious faith that prescribes a method of slaughter whereby the animal suffers loss of consciousness by anemia of the brain caused by the simultaneous and instantaneous severance of the carotid arteries with a sharp instrument, which ritual requirements have been designated as humane methods of slaughter by the subject Act.

(e) This statement is made with full knowledge that it will be relied upon by the Government in entering into contracts with the supplier and in payment of claims thereunder.

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§ 4.606 Humane method of livestock slaughter clause.

The following clause shall be used in accordance with § 4.604 (c):

HUMANE METHOD OF LIVESTOCK SLAUGHTER (JAN. 1961)

(a) The Contractor agrees that livestock products sold to the Government, except products produced or processed from livestock slaughtered outside the United States, its possessions, or Puerto Rico, conform to the requirements of the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906).

(b) The Contractor shall have furnished the Government a Statement of Eligibility (Humane Slaughter Act) before award of this contract of issuance of this purchase order, and such statement is hereby incorporated by reference.

§ 4.607 Reporting violations.

Reports of possible violation of a Statement of Eligibility given in accordance with § 4.604 shall be made to the Department of Justice by the Department concerned.

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5.1202-1

12.1202-2 5.1203

Department of the Army.

Department of the Navy.

Supply

Department of the Air Force.2
Defense Supply Agency.2

General Services Administration.2
Commodity assignments to single

managers.3

Defense Supply Agency.3
Department of the Navy.3

Plant cognizance procurement as-
signments.

AUTHORITY: §§ 5.100 to 5.1203 issued under sec. 2203, 70A Stat. 120; 10 U.S.C. 2202. Interpret or apply secs. 2301-2314, 70A Stat. 127-133; 10 U.S.C. 2301-2314.

Subpart A-Procurement Under Federal Supply Schedule Contracts [Revised]

SOURCE: §§ 5.100 to 5.106 appear at 27 F.R. 6128, June 29, 1962, except as otherwise noted. § 5.100 Applicability.

This subpart applies to procurement of supplies to be delivered or services to be performed in the United States (exclusive of Alaska and Hawaii) including the satisfaction of overseas requirements when such requirements are routed to facilities in the United States for supply action in accordance with instructions prescribed by the Military Departments. It does not apply to items under the cognizance of the Defense Subsistence Supply Center or the Defense Medical Supply Center or to items which are being purchased for resale.

[28 F.R. 2580, Mar. 16, 1963]

§ 5.101 Federal Supply Schedule Con

tracts.

The Federal Supply Service, General Services Administration, establishes contracts for common use classes of supplies and services. These contracts are summarized in Federal Supply Schedules which list the supplies or services that may be purchased from the contractors named therein. Military purchasing activities shall order their requirements for supplies or services covered by these contracts as set forth in §§ 5.102 and 5.103. Copies of the Federal Supply Schedules and the Federal Supply Schedule Check List (a quarterly publication indicating the status of all Federal Supply Schedules) are distributed by the

2 Added subsequent to revision of subpart. 3 Revoked.

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