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Subpart 9-8.3 Additional Principles Applicable to the
Settlement of Fixed-Price Type Contracts

Terminated for Convenience

$9-8.307 Settlement proposals.

$9-8.307-1 Submission of settlement proposals.

Contracting Officers shall encourage contractors to use the suggested formats set forth in FPR 1-8.802, 1-8.803, and 1-8.804 in the submission of settlement proposals, inventory schedules, accounting information, and applications for partial payments. The form entitled "Schedule of Accounting Information" (FPR 1-8.804–1) need be filed only once with respect to any termination. When the standard forms are not appropriate for a particular contract, Heads of Procuring Activities may authorize modifications thereof. However, the certificate shall be substantially as set forth in the form.

§9-8.307-2 Basis for settlement proposals.

Termination claims shall not be submitted on any basis other than the inventory or total cost basis without the prior approval of the Heads of Procuring Activities.

Subpart 9-8.4 Additional Principles Applicable to the
Settlement of Cost-Reimbursement Type
Contracts Terminated for Convenience

§9-8.404 Procedure after invoices or vouchers are discontinued.

89-8.404-1 Submission of settlement proposal.

Contracting Officers should encourage contractors to submit settlement proposals in the form set forth in FPR 1-8.802-4. When necessary, Heads of Procuring Activities may authorize modification of this form. However, the certificate shall be substantially as set forth in the form.

Subpart 9-8.5 Disposition of Termination Inventory

§9-8.501-2 General restriction on contractor's authority.

HPA's may authorize contractors to sell termination inventory to DOE and other employees of the Federal Government and employees of DOE contractors on the same basis afforded the general public, provided the employees warrant in writing that they have not:

(a) Participated in the determination to dispose of the property;

(b) Participated in preparation of the property for sale;

(c) Participated in determining the method of sale; or

(d) Acquired information not otherwise available to the general public regarding usage, conditions, quality, or value of the property. The required warranty signed by the employee concerned shall be obtained prior to completing the action.

§9-8.503 Inventory schedules.

§9-8.503-1 Submission of inventory schedules.

Contracting Officers should encourage contractors to submit inventory schedules in the forms set forth in FPR 1-8.803. When necessary, Heads of Procuring Activities may authorize modification of these forms. However, the certificate shall be substantially as set forth in the forms.

§9-8.504 Scrap and salvage.

$9-8.504-1 General.

Scrap determinations shall be reviewed in accordance with §9-8.512. For instructions regarding segregation and disposal of scrap metal, see DOE-Property Management Regulation 109-45 (PMR 109-45).

§9-8.504-2 Scrap warranty.

Release from liability under scrap warranties shall be reviewed in accordance with §98.512(b).

§9-8.505 Screening of property.

(a) When the Contracting Officer determines that application of DOE circulating requirements would result in an appreciable increase in disposal costs involving retention of personnel after the contract has been terminated, rental of storage space, or other factors, arrangements should be made locally with GSA to screen inventory schedules on an accelerated basis.

(b) Priority in the acquisition of serviceable or usable property included in the contractor's inventory shall be as follows:

(1) The DOE office administering the contract,

(2) Other activities of the DOE,

(3) Other agencies of the Government.

(c) The DOE circulation requirements set forth in DOE-PMR 109-43 are applicable to personal property in the contractor's inventory schedules.

§9-8.507 Sale or other disposition of termination inventory.

§9-8.507-1 General.

(a) All sales shall be in accordance with instructions set forth in DOE-PMR 109-45. (b) Any property which is included in the contractor's inventory schedules, which has not been acquired by the Government under §9-8.505 or donated under §9-8.508, may be acquired by the contractor or sold by the contractor to a third party, at any time after notification by the Contracting Officer that screening has been accomplished or will not be required. Generally, any such acquisition by the contractor or sale to a third party shall be on a competitive basis. Any acquisition or sale shall be in accordance with applicable laws and regulations. Any such acquisition or sale shall be subject to the approval of the Contracting Officer, as part of or prior to the final settlement.

§9-8.507-5 Applicability of antitrust laws.

Heads of Procuring Activities and Headquarters officials having the contracting responsibility shall furnish two copies of the notification referred to in FPR 1-8.507-5 to the Office of the General Counsel and one copy to the Senior Procurement Official, Headquarters.

§9-8.507-6 Foreign contractor inventory.

Contractor inventory located in foreign countries shall be handled in accordance with DOEPMR 109-43.5, 109-44.3 and 109-45.51.

$9-8.507-50 Sales without competition.

(a) See DOE-PMR 109-45.

(b) Sales or acquisitions by the contractor without competitive bids may be authorized by the Contracting Officer only in exceptional or unusual cases. Subject to the terms of the contract, such sales or acquisitions without competitive bids may be negotiated at prices that are fair and reasonable and not less than the proceeds that could reasonably be expected to be obtained if the property were offered for competitive sale at that time.

(c) Any sales made under paragraph (b) of this section shall be reviewed to the extent required by §9-8.512.

§9-8.507-51 Extension of credit.

Contractors shall not be required to extend credit to purchasers, and any sales made by contractors on credit shall be at their own risk.

§9-8.508 Donations.

It is DOE policy to utilize the established donation procedure in disposal of termination inventory. For detailed procedures, see DOE-PMR_109–44.

§9-8.509 Destruction or abandonment.

For detailed procedures, see DOE-PMR 109-45.

§9-8.512 Review of property disposal.

The following property disposal actions shall be reviewed by DOE employees designated to act as property disposal reviewing authorities:

(a) Determinations that termination inventory is scrap or salvage (the nature of the review of such determinations shall depend upon the acquisition cost and location of the property involved and such other considerations as the Contracting Officer determines to be pertinent);

(b) Release from liability under a scrap warranty, if the original acquisition cost of the material is $10,000 or more;

(c) Sales;

(d) Proposals to destroy, abandon, or donate to a public body; and

(e) Such other actions as the Contracting Officer deems appropriate.

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