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(b) A firm currently under contract to AEC or to a cost-type AEC contractor shall not be invited to submit a proposal for work in the same field if the proposed project would be performed concurrently with the existing contract and if the estimated cost of the new construction work involved is in excess of $10 million or the estimated cost of the architectengineer services is in excess of $1 million where a construction cost estimate cannot be determined. If, for cogent reasons, the designating official believes that such a firm should be invited, approval shall be obtained from the Division of Contracts. This requirement shall not apply to:

(1) Firms currently engaged only on AEC fixed-price construction contracts awarded as a result of formal advertising or invited bids;

(2) Any firm currently engaged on AEC contracts in the same field, the total of which involves construction costs of less than $10,000,000; or

(3) Any architect-engineer firm after it has completed Title I work, exclusive of checking shop drawings, even though it still has Title III inspection services to perform.

NOTE A: Normally, only those firms which are compatible with the size and complexity of the job requirements should be invited; that is for a small relatively simple job, firms whose resources and qualifications are far in excess of the job requirements should not be solicited, and where size and simplicity of the job permit, invitees should be limited to the geographic area of the job.

(c) Normally, only those firms which are compatible with the size and complexity of the job requirements should be invited; that is, for a small relatively simple job, firms whose resources and qualifications are far in excess of the job requirements should not be solicited, and where size and simplicity of the job permit, invitees should be limited to the geographic area of the job. [29 F.R. 13252, Sept. 24, 1964, as amended at 31 F.R. 9349, July 8, 1966)

PART 9-58-RENTAL OF CONSTRUC- practices in order to carry out the basic TION EQUIPMENT

AEC procurement policy set forth in

AECPR 9-1.5203. Sec.

[30 F.R. 7750, June 16, 1965) 9–58.000 Scope of part. 9-58.000-50 Policy, cost-type contractor pro

§ 9-58.001 [Reserved] curement. 9-58.001 [Reserved]

§ 9–58.002 General policy. 9-58.002 General policy.

It is the policy of the AEC: Subpart 9–58.1-Rental of Contractor-Owned

(a) To use presently owned AEC conEquipment

struction equipment to the fullest extent. 9-58.101 Rental agreement.

Careful investigation shall be made of 9-58.102 Rental period.

the equipment available not only at the 9-58.103 Rental rates.

Field Office concerned, but at other Field 9-58.104 Application of rates.

Offices to determine whether such equip9-58.105 Insurance.

ment can be economically utilized on the 9-58.106 Rental limitation. 9-58.107 Record of negotiation.

job. The Office of the Controller, Head9-58.108 Responsibility for repair and re- quarters, can assist in the investigation placement.

of excess equipment available in other 9-58.109 Equipment condition and inspec- offices. tion.

(b) To rent construction equipment, Subpart 9–58.24Rental of Third Party-Owned

where available, rather than purchase it, Equipment

unless in the case of third party-owned 9-58.201 Rental agreement.

equipment the Field Office determines 9-58.202 Rental rates.

that accrued rentals on a particular item 9-58.203 Insurance.

of equipment will approximate the cost 9–58.204 Option to purchase equipment. of ownership of it; except, however, in

dividual items of construction equipment AUTHORITY: The provisions in this part 9-58 issued under sec. 161, 68 Stat. 948; 42

having an original cost of less than U.S.C. 2201; sec. 205, 63 Stat. 390; 40 U.S.C.

$1,000 ordinarily should be purchased 486.

and not rented. Where it is clearly to SOURCE: The provisions of this part 9-58

the advantage of the Government, items appear at 29 F.R. 3004, Mar. 5, 1964, unless

having a cost of less than $1,000 may otherwise noted.

be rented with the approval of the Man

ager of the Field Office. Whenever it $ 9–58.000 Scope of part.

is practical, cost and other factors conThis part sets forth general policy and

sidered, contractor-owned equipment instructions relating to rental of con

shall be rented in preference to renting struction equipment for use by AEC cost

third party-owned equipment. type contractors.

(c) To pay rental for construction equipment at rates not higher than those prevailing in the locality, except under

unusual circumstances, and at as low a & 9-58.000–50 Policy, cost-type con

rate as is consistent with securing modtractor procurement.

ern equipment in good operating condiThis part constitutes a specific provi- tion. Costs of repair, job interruption sion which the contracting officer shall due to poor equipment, transportation, bring to the attention of Class A and and in-transit rental may well offset any Class B cost-type contractors as consti- apparent savings in rental rates. Rental tuting an area which requires appropri- paid shall be subject to any Governate treatment in the development of ment price ceiling regulations that may statements of contractor procurement be in effect.

Subpart 9–58.1-Rental of Contrac- ment Distributors' “Compilation of Avertor-Owned Equipment

aged Rental Rates for Construction

Equipment”. However, Managers of § 9–58.101 Rental agreement.

Field Offices may approve rates in exThe terms and conditions governing

cess of 65 percent of the current A.E.D. rental by the AEC of construction equip

schedule when local conditions require

higher rates. When it becomes necesment from a prime cost-type construction contractor are set forth in AECPR

sary as a general practice to exceed 65 9–16.5002-12, Outline of agreement for

percent of the current A.E.D. schedule, rental of contractor-owned construction

the Manager of the Field Office shall adequipment. This form of agreement is

vise the Director, Division of Contracts, designed for use as an appendix to an

Headquarters, explaining the circum

stances. AEC cost-type construction contract. It may be modified for rental of equipment

(b) For items of equipment that are under other contractual arrangements,

not covered by the A.E.D. schedule, use such as an operating contractor renting

the latest edition of “Contractors' Equipfrom a cost-type construction subcon

ment Ownership Expense" document tractor, and it may be modified for use

published by The Associated General as a separate contract or as an attach

Contractors of America, Inc., and informent to a subcontract. Some of the as

mation on prevailing local rates for depects of this agreement to which par

veloping rates that would be consistent ticular attention should be given are set

with the 35 percent reduction in the

A.E.D. rates (i.e., taking into consideraforth in $$ 9–58.102 through 9–58.109.

tion the expenses paid by the Govern(30 F.R. 7750, June 16, 1965)

ment under the rental agreement). $ 9–58.102 Rental period.

(29 F.R. 3004, Mar. 5, 1964, as amended at

29 F.R. 15646, Nov. 21, 1964) The base rental period shall extend from the time the equipment is accepted 8 9–58.104 Application of rates. at the job site until the contractor is The rental rates shail be applied in notified in writing by the AEC's repre- accordance with the foilowing rules: sentative that the equipment is no longer

(a) Basis of rates. The rates shall required. Subject to applicable limita

be based upon one shift of 8 hours per tions covered in the rental agreement

day, 40 hours per week, or 176 hours per form, the contractor shall be paid rental

month of a 30 consecutive-day period. during the in-transit time and during

(b) Apportionment of rates. The the time required for equipment repair

monthly rate and its pro rata shall apor replacement prior to return to the

ply to all rental periods of one month contractor.

or more. The weekly rate and its pro

rata shall apply to all rental periods of $ 9–58.103 Rental rates.

one week or more up to one month. (a) Rates for rental of contractor- The daily rate and its pro rata shall owned equipment shall be fair and apply to all rental periods up to one equitable. The rental rates contemplate week. that the AEC will pay incoming and out- (c) Overtime. Inasmuch as there are going transportation costs and rental certain elements of cost to an equipment during in-transit time for both inbound owner which do not change even though and outbound transportation of equip- the equipment is used on more than one ment; however, terms more favorable to shift per day, it is believed equitable to the AEC may be negotiated where appro- pay a lower rental rate during a second priate. The rental rates to be paid for and third shift than would be paid the use of contractor-owned equipment during a single shift. Therefore, the under normal conditions should not ex- rental agreement form provides for payceed 65 percent of the rates quoted in the ment for overtime at a rate equal to latest edition of the Associated Equip- one-half the rate for the first shift.

§ 9-58.105 Insurance.

sulting from normal wear and tear, pro

vided they were necessary in order to (a) Generally, rental rates should in

continue the equipment in service. Howclude the cost of insurance or selfinsurance covering loss of or damage to

ever, when the equipment is no longer

required on the job, the extent of the the equipment during rental periods.

AEC's obligation is only to return the The rental agreement for contractor

equipment to the contractor in as good owned equipment is so worded.

operating condition as when received, (b) However, if the Contracting Offi

less normal wear and tear. cer determines that it is not practical to include the cost of such insurance in the § 9-58.109 Equipment condition and rental rates, paragraphs 3(d) and 7(a)

inspection, shall be amended as indicated in the ap

(a) Inspection. Construction equipplicable notes following these paragraphs

ment shall be given a rigid and detailed in AECPR 9-16.5002–12.

inspection by representatives of the $ 9–58.106 Rental limitation.

AEC and, at the contractor's option, by

representatives of the contractor, before The rental agreement form provides

its shipment and acceptance or use on that when the total amount of rental

the job. Equipment shall be inspected paid to the contractor for any one unit

under actual workloads insofar as pracof equipment equals 75 percent of the

ticable. In cases where it is not practical mutually agreed value of that unit as set forth in the initial inspection report,

to inspect equipment prior to its ship

ment to the job site, the contractor the equipment is to remain available for

should be informed of the extent of inthe work under the construction con

spection and the expected condition of tract as long as it will be required with

his equipment. In the event the equipout any further rental payments to the

ment does not meet required standards, contractor. The rental ceiling of 75 per

the transportation, rental or any other cent of the agreed-upon value of the

expenses shall not be paid by the AEC equipment applies to all rental paid, in

unless at contractor's expense the equipcluding rental paid during in-transit

ment is repaired to acceptable standards time to and from the site of the work

in a reasonable length of time. A similar and down time for any operating repairs

inspection shall be made immediately or restoration of the equipment after it

prior to scheduled return shipment of an is no longer needed at the site. The

item of equipment. purpose of this provision is to prevent

(b) Inspection report. The detailed the Government from paying rental in

inspection report shall follow in general excess of the contractor's investment, and

AECPR 9–16.5002–14, Outline of inspecit is included in lieu of an “option to

tion report of equipment, and shall be purchase clause.” Once a particular

signed by each representative inspecting. piece of equipment has been released,

The initial inspection report shall be the contractor will not be required to re

used at the time of release as a basis for turn it to the job under the original

determining the repairs necessary to rental period.

place the equipment in as good operating $ 9–58.107 Record of negotiation.

condition as when accepted, less normal The record of negotiation shall set

wear and tear. After necessary repairs forth the information used to determine

are completed, a final inspection report the reasonableness of the rental rates,

shall be completed by representatives of including a breakdown of the contrac

the AEC and, at his option, the contor's equipment ownership expense

tractor. similar to that itemized in The Asso

(c) Trial period and defects. If initial ciated General Contractors of America's

detailed inspection discloses that the document, “Contractors' Equipment

condition of the equipment is doubtful, Ownership Expense."

arrangements should be made with the

contractor for a trial period of operation & 9-58.108 Responsibility for repair

to prove the equipment, with provision and replacement.

that if equipment is found unacceptable The rental agreement describes the re- in the trial period, no rental, transportasponsibilities of the parties with respect tion, or other expenses will be due the to maintenance and repair necessary to contractor. Repairs to equipment which the operation of the rented equipment, fails in service due to defects not reasonor replacement of such equipment. The ably ascertainable on initial inspection AEC's responsibility includes repairs re

shall be at the contractor's expense.

489

66-090 0-67-32

Subpart 9–58.2 Rental of Third

Party-Owned Equipment § 9-58.201 Rental agreement.

The terms and conditions governing rental of construction equipment without operators from a third party are in accordance with $$ 9–58.102, 9–58.104, 9–58.108 and 9–58.109, and they are set forth in AECPR 9–16.5002-13-Outline of agreement for rental of third partyowned construction equipment. Managers of Field Offices shall assure that these terms and conditions are used by AEC cost-type construction contractors and that similar terms and conditions are used by other AEC cost-type contractors or subcontractors in renting construction equipment from a third party. These terms and conditions may be suitably modified to provide for rental of equipment with operators. Some of the aspects of this agreement to which particular attention should be given are set forth below in this section. (30 F.R. 7750, June 16, 1965)

specifications shall be based on the circumstances of a particular case, including the length of rental period, the availability of equipment in certain localities, and the work requirements. $ 9–58.203 Insurance.

The provisions of AECPR 9-58.105 (a) also apply to the rental of construction equipment from a third party. However, if the Contracting Officer determines that the rental rates are not to include the cost of insurance or self-insurance covering loss of or damage to the equipment, Articles III(d) and VII (a) of the rental agreement shall be amended as indicated in the applicable notes following these articles in AECPR 916.5002–13, Outline of agreement for rental of third party-owned construction equipment.

§ 9-58.204 Option to purchase equip

ment.

§ 9-58.202 Rental rates.

Third party equipment shall be rented on the basis of competitive bids, rental rates, transportation costs, and other factors being considered. The rental

When accrued rentals on a particular item of equipment will likely approximate the appraised value of equipment and a decision has been made not to purchase in accordance with $ 9–58.002(b), consideration shall be given to including in the rental agreement an option to purchase the equipment.

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