GOVERNMENT PROPERTY ADMINISTRATION

(c) Any normal maintenance program that is agreed to Fursuant to either (a) or (b) above shall provide specific details which will insure protection, preservation, maintenance, and repair of the Government Froduction 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 With the prior written agreement of the contracting cfficer, such program may also provide for:

as

(i) a specified degree of inspection procedures, maintenance, and repairs that is less than sound industrial practice to any part of the Government production and research property which is determined by NASA to be nonessential to future utilization of the property as a whole; and

(ii) 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 (c) above, and when such an order will result in savings to the Government.

(e) The contracting officer may crder more than the normal maintenance when necessary and in the best interest of the Government, but only if adequate funds are available therefor. The Government shall reimburse the contractor for the costs incurred.

(f) Maintenance, modernization, or repair work to be performed under a facilities contract may be suitable for performance by small business concerns. When in the judgment of the contracting officer, it appears that such work is capable of performance by small business concerns, he shall include in the facilities contract the "Use of Small Business Concerns as Subcontractors" clause in 7.705-31 and identify in the Schedule the specific items of such work considered capable of performance by small business concerns.

13.413-2 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 i sprovided. However, the Schedule of any contract under which such Government Froduction and research property is provided may

NASA PROCUREMENT REGULATION

13.414 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, or the applicable contract clause set forth in Subpart 7 of this Part, as appropriate.

13.415 Disposition.

(a) Except for nonseverable production and research Froperty for which specific provision is made by 13.207, the disposition of Government property shall be in accordance with Part 24 of this Regulation and NASA Management Instruction 4310.1, "Screening and

Utilization of Excess Contractor Inventory".

(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 the installation is obtained. The authority to grant such approval shall not be delegated.

13.416 Standby or Layaway Provision.

The se

(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 ca re and maintenance of the property appropriate for its intended future use. provisions ma y be the same as or different from the Maintenance clause set forth in 7.702-14, 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

CFR TITLE 41 CHAPTER 18

GOVERNMENT PROPERTY ADMINISTRATION

standby or layaway, he shall be reimbursed therefor to the extent provided under 15.205-41.

13.417 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 NASA installation which issued the contract shall review the Government's need for its continued retention. In addition, the installation 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 ΟΙ the right to acquire title. In either consideration shall be given to the factors set forth in 13.304-3 (b) in determining the Government's need for retention of the special tooling and special test equipment.

case,

Facilities Contracts. A be terminated when the research property covered

13.418 Termination of facilities contract shall Government production and 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 nct 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.

13.419 Rental of Government Production and Research Property.

(a) Rent computed in accordance with 13.420 shall be charged, except when use without charge is authorized ty the contracting officer having cognizance of the property.

(b) When Government production and research property is no longer required for the performance of Government contracts or subcontracts, it shall not continue to be made available to a contractor solely for commercial use pursuant to this Subpart. (see 13.201.)

(c) Each contracting officer having cognizance of Government production and research property shall be responsible for the collection of rent thereon.

13.420 Rental Rates for the Use of Government Froduction and Research Property.

the rent for all property shall be

(a) Except as provided below, Government production and research ccrputed in accordance with the "Use and Charges" clause set forth in 7.702-12 for facilities. Rent for machine tools (Federal Supply Classes 3405, 3408, 3410,

NASA PROCUREMENT REGULATION

GOVERNMENT PROPERTY

3411 through 3419) and secondary metalforming and cutting machines (Federal Supply Classes 3441 through 3449) shall be based on the time such property is available for use. Rent for other classes of Government production and research property is normally charged on the same basis; however, if the Assistant Administrator for Procurement determines it to be in the best interest of the Government, rent may be charged on an actual use or other basis. In such cases, the Use and Charges clause should be appropriately modified.

(b) The rental charge required by (a) shall not be applicable to:

(i) wholly Government-owned private contractors on a fee basis;

plants operated by

(ii) items of equipment which are of such size or complexity, or have such perfcrmance characteristics, that they present unusual problems in relation to the time required for their preparation for shipment, installation, and preparation for operation;

(iii) Government production and research property left in place or installed on contractor-cwned property for future production purposes of NASA provided, that a rental charge computed in accordance with (a) shall apply to SO much of such property or its capacity as may be used or authorized for use.

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Subpart 5-Competitive Advantage

13.500 Scope of Part. This Subpart sets forth NASA requirements re- I garding the elimination of the competitive advantage that might accrue to a contractor from the use of Government production and research property.

13.501 Evaluation Requirements. Bids and proposals which require competitive advantage evaluation pursuant to NASA policy as set forth in paragraph 13.210 shall be adjusted to eliminate competitive advantage using the procedures set forth in this Subpart.

13.502 Advertised Procurements-Use of Existing Government Production and Research Property.

13.502-1 General. In formally advertised procurements, the competitive advantage that might otherwise accrue to a contractor from the use of existing Government production and research property shall be eliminated by adding an evaluation factor to each bid for which such use is requested, or where the use of an evaluation factor is not practical, by charging rent for such use.

13.502-2 Procedures for Use of Evaluation Factors. Where an evaluation factor is used, it shall be equal to the rent, allocable to the contract, which would otherwise have been charged for such use. The invitation for bids shall set forth a description of the evaluation procedure to be followed, as required by 13.506, and it shall require all bidders to submit with their bids:

(i) a list or description of all Government production and research property which the bidder or his anticipated subcontractors propose to use on a rent-free basis, including property offered for use in the invitation for bids, as well as property already in possession of the bidder and his subcontractors under other contracts;

(ii) with respect to such property already in possession of the bidder and his proposed subcontractors, identification of the facilities contract or other instrument under which the property is held, and the written permission of the contracting officer having cognizance of the property for use of that property;

(iii) the months during which such property will be available for use, which shall include the first, last, and all intervening months, and with respect to any such property which will be used concurrently in performance of two or more contracts, the amounts of the respective uses in sufficient detail to support the proration required by 13.502-3(b); and

(iv) the amount of rent which would otherwise be charged for such use, computed in accordance with 13.420.

13.502-3 Limitations.

(a) The invitation for bids shall provide that no use of Government production and research property other than as described and permitted pursuant to 13.502-2 shall be authorized unless such use is approved in writing by the contracting officer cognizant of the property, and either rent calculated in accordance with 13.420 is charged, or the contract price is reduced by an equivalent amount.

(b) If Government production and research property will be used on other work under one or more existing contracts for which use has been authorized (see 13.405 and 13.419), the evaluation factor shall be determined by prorating the rent between the proposed contract and such other work. The pro rata share applicable to a proposed contract shall be determined by multiplying the full rental charge for the use of Govern

NASA PROCUREMENT REGULATION

13.502-3