(3) The reasonably foreseeable requirements for its future use, and

(4) Its scrap or salvage value.

(c) If the contracting officer decides to consider the residual value of special tooling or special test equipment in a competitively negotiated procurement, the solicitation shall give notice thereof and a statement of the reasonably foreseeable future requirements of the Government for the supplies in question, in order to afford offerors the opportunity to consider such residual value as a factor in making their proposals. If the solicitation does not contain such notice and statement but the contracting officer decides to consider the residual value of special tooling or special test equipment after receipt of the proposals, he shall during the negotiations give all offerors within a competitive range a notice and statement as above, and shall permit them to make such changes in their proposals as they may consider necessary as a result of the addition of the residual value factor.

§ 13.505 Additional evaluation factors. (a) If the furnishing of Government production and research property will result in direct and measurable costs and under the terms contained in the solicitation such costs are to be borne by the Government, additional factors, set forth in the solicitation either in the form of a dollar amount or a formula, shall be employed in the evaluation of bids or proposals. Such factors shall be limited to:

(1) The cost of reactivation from base package or storage;

(2) The cost of rehabilitation and conversion; and

(3) The costs of making such property available on a f.o.b. basis.

(b) If, under the terms contained in the solicitation, the costs of furnishing Government production and research property or making it suitable for use are to be borne by the contractor, as, for example, when such property is offered on an "as is" basis (see § 13.308), no additional evaluation factors related to such costs shall be used.

(c) If measurable savings to the Government will result directly from the use of Government production and research property on the contract for which the solicitation is made, a dollar amount representing such savings shall be set forth in the solicitation and employed in the

evaluation of bids or proposals. Exam ples of such savings include:

(1) Savings occurring as a direct re sult of activation of idle tools bein maintained in idle status at known cos to the Government; and

(2) Avoidance of the cost of deactiva tion and placing active tools in layawa or storage, or of maintaining them in ar idle state where the prospective costs ar known and firm decisions have been made that such tools will be laid away or stored if not used on the contract for which solicitation is made.

Avoidance of the costs of initial lay-away or storage shall not be evaluated when such costs will merely be deferred by the proposed use.

[31 F.R. 1051, Jan. 27, 1966] § 13.506 Solicitations

evaluation procedure.

description of

Generally, where Government production and research property is offered for use in a competitive procurement, the solicitation should provide that the user will assume all costs related to making the property available (such as transportation or rehabilitation costs), to avoid the need for separate evaluation of such costs. Where this is not feasible, or it is otherwise in the Government's interest, the Government may assume certain of such costs provided they are included in the evaluation of bids or proposals. The rental charges or equivalent factors to be used to eliminate competitive advantage, as well as all costs or savings to be evaluated, shall be clearly shown in the solicitation to insure that all prospective bidders or offerors understand the basis to be used for selection of the lowest bid or proposal and take these factors into account in preparing their bids or proposals.

Subpart F--Administration of Government Production and Research Property

submit a normal maintenance program to the contracting officer as promptly as practicable after the execution of the facilities contract. The contracting officer shall examine such program and shall negotiate with the contractor for an agreement thereon.

(c) Any normal maintenance program that is agreed to pursuant to either paragraph (a) or (b) of this section shall provide specific details which will insure protection, preservation, maintenance, and repair of the Government production and research property in accordance with sound industrial practice. In addition, such program shall include general language covering any aspects of maintenance which are not specifically provided for. Such program may also provide for:

(1) A specified degree of inspection procedures, maintenance, and repairs that is less than sound industrial practice as to any part of the Government production and research property which is determined by the Department concerned to be nonessential to future utilization of the property as a whole; and (2) Reimbursement by the Government for the cost of protecting, preserving, maintaining, and repairing Government production and research property not authorized for use by the contractor.

(d) The contracting officer shall order a decrease in maintenance when the current maintenance is not necessary to assure the standards set forth in paragraph (c) of this section, and when such an order will result in savings to the Government.

(e) The contracting officer may order more than the normal maintenance when necessary, but only after authority has been obtained pursuant to § 13.302 and adequate funds are available therefor. The Government shall reimburse the contractor for the costs incurred.

§ 13.601-2 Contracts other than facilities contracts.

Government production and research property provided under a contract other than a facilities contract shall be maintained in accordance with sound industrial practice pursuant to the appropriate clause of the contract under which it is provided. However, the Schedule of any contract under which such Government production and research property is provided may contain specific maintenance requirements for such property when appropriate.

§ 13.602 Risk of loss or damage and liability.

When justified by the circumstances of any particular contract, the contract may require the contractor to assume greater risks than those enumerated in the clause set forth in § 7.702-18 of this chapter, or the applicable contract clause set forth in Subpart G of this part, as appropriate.

§ 13.603 Termination of facilities con

tracts.

A facilities contract shall be terminated when the Government production and research property covered thereby is no longer required for the performance of Government contracts or subcontracts, unless such termination is detrimental to the Government's interests. The contractor shall not be granted the unilateral right, at his election, to extend the time during which he is entitled to use the property provided under the facilities contract.

§ 13.604 Standby or layaway provision.

(a) A facilities contract may include appropriate provisions for maintenance and storage of Government production and research property in standby or layaway status. Such provisions shall include specifications for the care and maintenance of the property appropriate for its intended future use. These provisions may be the same as or different from the Maintenance clause set forth in § 7.702-14 of this chapter, depending upon the purpose and scope of the standby or layaway provisions, the expected duration of the standby or layaway status and other pertinent considerations.

(b) If the Government is required to pay the contractor for maintenance and storage of Government production and research property in standby or layaway, the facilities contract shall define with particularity what constitutes standby or layaway, and when and under what circumstances such payments will commence and terminate with respect to all or any part of the property.

(c) The facilities contract shall provide that, if the contractor is required to pay any state or local property tax measured by his possession of or interest in Government production and research property in standby or layaway, he shall be reimbursed therefor to the extent provided under § 15.205-41 of this chapter.

§ 13.605

Retention of special tooling and special test equipment.

Upon termination or completion of a contract under which the Government has obtained title to or the right to acquire title to special tooling or special test equipment, the procuring activity shall review the Government's need for its continued retention. In addition, the procuring activity shall periodically review the Government's need for retaining all special tooling and special test equipment, not currently in use, to which it has title or the right to acquire title. In either case, consideration shall be given to the factors set forth in § 13.305-2(b) in determining the Government's need for retention of the special tooling and special test equipment. § 13.606 Disposition.

(a) Disposition of Government production and research property shall be in accordance with applicable regulations and contract provisions (see, for example, § 13.307). See Part 8 of this chapter for disposition of contractor inventory and Departmental regulations for disposition of surplus property generally.

(b) Contracts under which Government production and research property is provided to a contractor shall reserve to the Government the right to abandon such property in place, without any obligation to restore or rehabilitate the premises of the contractor. However, this right may be waived if the prior approval of the head of a procuring activity is obtained. The authority of the head of a procuring activity to grant such approval shall not be delegated. § 13.607 Insurance.

When less than 75 percent of the total use of facilities is for Government work, consideration shall be given to requiring that the contractor procure and maintain insurance against loss of or damage to the facilities. If necessary, facilities contracts may be modified to require such insurance.

§ 13.608 Property control and accounting procedures.

Property control and accounting procedures shall be maintained in accord

Contract clauses and guidance as to their use in specific types of contracts are included in the following sections of this chapter:

(a) Government property.

(1) § 3.608-2(b) (1) (viii) or small purchases.

(2) § 7.104-24 for fixed price supply contracts.

(3) § 7.203-21 for cost reimbursement type supply contracts.

(4) § 7.303-7 for fixed price research and development contracts.

(5) § 7.402-25 for cost reimbursement type research and devolpment contracts. (6) § 7.504-4 for personal services tracts.

con

(7) §§ 7.603-22 and 7.603-28 for fixed price construction contracts.

(8) § 7.605-14 for cost reimbursement type construction contracts.

(9) § 7.702-18 for facilities contracts. (10) § 7.901-5 for time and material and labor hour contracts.

(11) § 7.1401.11 for laundry and dry cleaning contracts.

(12) § 16.102–2(c) (2) (xi) for short form negotiated contracts.

(b) Special tooling.

(1) 7.104-25 for fixed price supply con

tracts.

(c) Special test equipment.

(1) § 7.104-26 for fixed price supply contracts.

(2) § 7.204-38 for cost reimbursement type supply contracts.

(3) § 7.303-37 for fixed price research and development contracts.

(4) § 7.403-33 for cost reimbursement type research and development contracts. [36 F.R. 7950, Apr. 28, 1971]

136 F.R. 7950, Apr. 28, 1971.

(a) The selection, appointment, and termination of appointment of property administrators shall be made in writing by the Head of a Procuring Activity or his designee for the Defense Supply Agency and by the head of the contract administration office (§ 1.201-25 of this chapter) or his designee for the Military Departments. In selecting qualified property administrators, the appointing authority shall consider experience, training, education, business acumen, judgment, character, and ethics.

(b) In considering experience, training and education, the following shall be evaluated:

(1) Experience in accounting, material control, inventory control and allied functions;

(2) Formal education or specialization in such areas as evaluating, monitoring, administering, or coordinating industrial property programs or implementing plans and policies in support of diversified property control system;

(3) Knowledge of the provisions of this and other applicable regulations. [32 F.R. 16408, Nov. 30, 1967, as amended at 33 F.R. 15392, Oct. 17, 1968]

§ 13.802 Assignment of contracts for property administration.

(a) All Department of Defense contracts under which Government property will be provided and which will be performed at a single location by a contractor shall be assigned to a single property administrator.

(b) Each contract under which Government property will be provided to the contractor will be assigned in writing to a property administrator by the CAO. The assignment document shall contain the (1) name and address of the contractor, (2) PII (contract) number, and (3) type of contract. The CAO and the contractor shall be advised in writing of the assignment and any changes thereto.

(c) The assignment shall be terminated when:

(1) It has been determined that no Government property has been or will be furnished or acquired, or

(2) The contract is reassigned to another CAO or to another property administrator.

[32 F.R. 16408, Nov. 30, 1967]

§ 13.803 Records of Government property.

Records of Government property established and maintained by the contractor pursuant to the terms of the contract shall be designated and utilized as the official contract records. Duplicate records shall not be furnished to nor be maintained by the Government personnel other than as provided for in this subchapter. Exceptions to this policy may be authorized by the Head of a Procuring activity, or his designee, where Government property is furnished to a contractor for repair or servicing and return to the shipping organization under contracts administered by the procuring activity. In such cases, the property will be accounted for as a suspense item within the military account from which shipped and the Government property clause shall be modified by insertion of the following clause.

PROPERTY RECORDS (AUGUST 1967)

The Government shall maintain the offcial contract records in connection with Government property under this contract. The "Government Property" clause is hereby modified by deleting so much thereof as requires that the Contractor maintain such records.

[32 F.R. 16408, Nov. 30, 1967]

14.602

14.603

General.

Federal Aviation Administration. Quality assurance among NATO countries.

14.603-1 NATO quality control system requirements for industry. 14.603-2 NATO Quality Assurance Handbook AQAP-2.

AUTHORITY: The provisions of this Part 14 issued under sec. 2202, 70A Stat. 120; 10 U.S.C. 2202. Interpret or apply secs. 23012314, 70A Stat. 127-133; 10 U.S.C. 2301-2314.

SOURCE: The provisions of this Part 14 appear at 32 F.R. 16408, Nov. 30, 1967, unless otherwise noted.

§ 14.000 Scope of part.

This part prescribes policies and procedures (a) to assure that supplies and services procured by the Department of Defense conform to the quality and quantity set forth in the contract and (b) for the acceptance functions associated therewith.

§ 14.001 Definitions.

As used in this part, words and terms shall have the meanings set forth below.