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(i) Property for which only use or depreciation allowances are charged;

(ii) Property donated by a third party (whether or not counted as a third-party in-kind contribution); and

(iii) Property acquired for sale or rental rather than for use in the grant project.

(4) Grantees and subgrantees may use their own property management standards and procedures if the requirements of this section are included.

(c) Real property. (1) Federally owned real property shall be managed and disposed of in accordance with the terms and conditions of the award.

(2) Real property may be acquired with DOE grant funds only when authorized by Federal statute or program rule and only if DOE specifically authorizes such costs in the award. Except as otherwise required by Federal statute or program rule, the following shall apply whenever real property is acquired with DOE grant funds.

(i) Subject to the conditions in paragraphs (c)(2)(ii) and (c)(2)(iii), the grantee shall have title to such real property during and after the period of DOE grant support. A subgrantee may have title to such real property only if authorized by Federal statute or program rule.

(ii) Except as provided in paragraph (c)(2)(iv), the grantee shall notify DOE at any time if the real property becomes unnecessary for the purpose authorized under the grant or subgrant under which it was acquired. The grantee must obtain written DOE approval to use the property for any other purpose. Such use shall be limited to federally assisted projects, or to programs, projects or activities that have purposes consistent with those authorized in the statute under which the grant was awarded.

(iii) Except as provided in paragraph (c)(2)(iv) of this section, whenever real property is no longer needed or used as provided in paragraph (c)(2)(ii) of this section, the grantee must request disposition instructions from DOE. DOE shall instruct that the real property be disposed of in one of the following ways, any one of which shall result in satisfaction of the grantee's accountability:

(A) The grantee or subgrantee may be permitted to retain the real property after compensating DOE in an amount computed by applying the percentage of DOE participation in the allowable costs of the project to the current fair market value of the property.

(B) The grantee or subgrantee may be directed to sell the real property and pay DOE an amount computed by applying the percentage of DOE participation in the allowable costs of the project to proceeds from sale (after deducting actual, reasonable selling expenses from the sales proceeds).

(C) The grantee or subgrantee may be directed to transfer title to the

or to a non-Federal third party specified by DOE (although the grantee or subgrantee may suggest a potential third party transferee). The grantee or subgrantee shall be compensated in an amount computed by applying the grantee's percentage of participation in the allowable costs of the project to the current fair market value of the real property.

(D) if the real property was not wholly acquired with DOE grant funds, the proportional shares shall be adjusted by multiplying the percentage of the acquisition cost of the property (or if donated, the market value at the time of donation) which was attributable to DOE grant funds by the percentage of DOE, grantee, or subgrantee participation in the allowable costs of the project. This requirement also applies to reimbursement due under paragraph (d) or (e) of this section.

(iv) If real property is acquired under a grant or subgrant of $10,000 or less, the grantee shall not be required to

(A) Obtain DOE approval for any alternative use or disposition of the property after the end of the project period.

(B) Compensate DOE for its share of the acquisition cost of the real property.

(d) Equipment - (1) Federally owned equipment. Unless otherwise specified in the award, the grantee or subgrantee shall manage federally owned equipment provided by DOE or acquired with DOE grant funds in accordance with the property management standards in OMB Circular A - 102, Attachment N, Paragraph 6.d. or OMB Circular A-110, Attachment N, Paragraph 6.d., as applicable. The OMB Circular A-110 requirements shall also apply to individuals, for-profit organizations, and foreign organizations. However, if federally owned equipment has been provided under a grant, the grantee must submit annually an inventory to DOE which lists such equipment in the custody of the grantee, any subgrantee, or contractor under the grant. For federally owned equipment acquired with DOE grant funds, the grantee shall provide DOE written notification of the results of the inventory (ies) under OMB Circular A-102, Attachment N, Paragraph 6.d. or OMB Circular A-110, Attachment N, Paragraph 6.d., as applicable.

(i) During the period of DOE support, the grantee shall notify DOE as soon as practicable whenever federally owned equipment is no longer needed for the project. For expired or terminated grants, the grantee shall report any federally owned equipment upon request by DOE as part of closeout (see $600.123). Thereafter, DOE shall issue disposition instructions to the grantee in accordance with applicable law and regulations.

(2) Transfer of equipment. DOE may transfer ownership of any item of exempt or nonexempt equipment having a unit acquisition cost of $1,000 or more to the Federal government or to an eligible third party named by DOE, subject to the following:

within 120 days following the end of the project period or the termination of the DOE grant under which the equipment was acquired, and must specifically identify the equipment to be transferred. DOE shall arrange for transfer as soon as possible after the notice.

(ii) DOE may transfer ownership only when the equipment is no longer needed for the project for which it was acquired, or if the grantee or subgrantee agrees to relinquish the equipment.

(iii) The grantee shall be paid any reasonable storage or shipping costs incurred plus an amount computed by multiplying the current fair market value of the equipment by the non-Federal share, if any, in the allowable costs of the project. A grantee may, in the terms of a subgrant, reserve the right to transfer equipment acquired under the subgrant as provided in this paragraph. Without DOE approval, this right may be exercised only if the project for which the equipment was acquired is transferred to another subgrantee and the equipment is to be transferred for continued use in the project. Any other exercise of this right by the grantee requires the prior written approval of DOE.

(3) State governments, local governments, and Indian tribal governments shall comply with the provisions of OMB Circular A-102, Attachment N, Paragraphs 6.b, c, and d for the use, disposition and management of nonexempt equipment. All other types of grantees and subgrantees shall comply with OMB Circular A-110, Attachment N, . Paragraphs 6.b, c, and d for use, disposition and management of such equipment.

(4) At the end of the project period or at the termination of DOE support for the project, the grantee shall provide an inventory of nonexempt equipment with a unit acquisition cost of $1,000 or more acquired by the grantee or subgrantee along with a statement of grantee's or subgrantee's plans for continued use or recommendations for disposing of such equipment. If nonexempt equipment is acquired under a grant of $10,000 or less, and DOE does not transfer ownership under paragraph (d)(2) of this section, the grantee shall have no further obligation to DOE with respect to the use, management, or disposition of such property.

(e) Supplies. (1) Federally owned supplies shall be used, managed, and disposed of in accordance with the terms and conditions of the award.

(2) If, at the end of the project period or upon termination of the grant or subgrant for which supplies (other than federally owned supplies) were acquired, unused supplies exceeding $1,000 in total aggregate current fair market value remain, they may be used for any other federally funded activity of the grantee or subgrantee without compensation to DOE. Unless otherwise exempted by Federal statute, if they are not needed for any federally funded activity, the grantee or subgrantee must compensate DOE. If the supplies are retained for use on non-Federal activities, the amount due DOE shall be computed by multiplying the DOE share in the allowable costs of the project for which the supplies were acquired by the current fair market value of the supplies. If sold, the DOE share shall be multiplied by the sales proceeds or the current fair market value, whichever is greater, to determine the amount due DOE. The grantee or subgrantee may retain $100 or ten percent of the proceeds, whichever is greater, for selling and handling expenses.

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The contractor shall indemnify the Government and its officers, agents, and employees against liability, including costs, for infringement of u.s. Letters Patent (except U.S. Letters Patent issued upon an application which is now or may hereafter be kept secret or otherwise withheld from issue by order of the Government resulting from the contractor's: (a) furnishing or supplying standard parts or components which have been sold or offered for sale to public on the commercial open market; or (b) utilizing its normal practices or methods which normally are or have been used in providing goods and services in the commercial open market, in the performance of the contract; or (c) utilizing any parts, components, practices, or methods to the extend to which the contractor has secured indemnification from liability. The foregoing indemnity shall not apply unless the contractor shall have been informed as soon as practicable by the Government of the suit or action alleging such infringement, and shall have been given such opportunity as is afforded by applicable laws, rules, or regulations to participate in the defense thereof; and further, such indemnity shall not apply to a claimed infringement which is settled without the consent of the contractor, unless required by final decree of a court of competent jurisdiction or to an infringement resulting from addition to or change in such supplies or components furnished or construction work performed for which addition or change was made subsequent to delivery or performance by the contractor.

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This clause is applicable only to the extent that the agreement is incrementally funded within budget periods.

(a) The parties estimate that performance of this contract will not cost the Government more than (1) the estimated cost specified in the Schedule or, (2) if this is a cost-sharing contract, the Government's share of the estimated cost specified in the Schedule. The Contractor agrees to use its best efforts to perform the work specified in the Schedule and all obligations under this contract within the estimated cost, which, if this is a cost-sharing contract, includes both the Government's and the Contractor's share of the cost.

(b) The Schedule specifies the amount presently available for payment by the Government and allotted to this contract, the items covered, the Government's share of the cost if this is a cost-sharing contract, and the period of performance it is estimated the allotted amount will cover. The parties contemplate that the Government will allot additional funds incrementally to the contract up to the full estimated cost to the Government specified in the Schedule, exclusive of any fee. The Contractor agrees to perform, or have performed, work on the contract up to the point at which the total amount paid and payable by the Government under the contract approximates but does not exceed the total amount actually allotted by the Government to the contract.

(c) The Contractor shall notify the Contracting Officer in writing whenever it has reason to believe that the costs it expects to incur under this contract in the next 60 days, when added to all costs previously incurred, will exceed 75 percent of (1) the total amount so far allotted to the contract by the Government or, (2) if this is a cost-sharing contract, the amount then allotted to the contract by the Government plus the Contractor's corresponding share. The notice shall state the estimated amount of additional funds required to continue performance for the period specified in the Schedule.

(d) Sixty days before the end of the period specified in the Schedule, the Contractor shall notify the Contracting Officer in writing of the estimated amount of additional funds, if any, required to continue timely performance under the contract or for any further period specified in the Schedule or otherwise agreed upon, and when the funds will be required.

(e) if, after notification, additional funds are not allotted by the end of the period specified in the Schedule or another agreed-upon date, upon the Contractor's written request the Contracting Officer will terminate this contract on that date in accordance with the provisions of the Termination clause of this contract. If the Contractor estimates that the funds available will allow it to continue to discharge its obligations beyond that date, it may specify a later date in its request, and the Contracting Officer may terminate this contract on that later date.

(f) Except as required by other provisions of this contract, specifically citing and stated to be an exception to this clause

(1) The Government is not obligated to reimburse the Contractor for costs incurred in excess of the total amount allotted by the Government to this contract; and

(2) The Contractor is not obligated to continue performance under this contract (including actions under the Termination clause of this contract) or otherwise incur costs in excess of (i) the amount then allotted to the contract by the Government or, (ii) if this is a cost-sharing contract, the amount then allotted by the Government to the contract plus the Contractor's corresponding share, until the Contracting Officer notifies the Contractor in writing that the amount allotted by the Government has been increased and specifies an increased amount, which shall then constitute the total amount allotted by the Government to this contract.

(g) The estimated cost shall be increased to the extent that (1) the amount allotted by the Government or, (2) if this is a cost-sharing contract, the amount then allotted by the Government to the contract plus the Contractor's corresponding share, exceeds the estimated cost specified in the Schedule. If this is a cost-sharing contract, the increase shall be allocated in accordance with the formula specified in the Schedule.

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