contracting officer having cognizance of the property for use of that property;

(c) 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 § 1813.502-3(b); and

(d) The amount of rent which would otherwise be charged for such use, computed in accordance with § 18-13.404. § 18-13.502-3 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 § 18-13.502-2 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 § 18-13.404 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 § 18-13.402 and § 18-13.403), 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 Government production and research property for the period for which rentfree use is requested (i.e., the full charge for the requisite number of rental periods computed in accordance with paragraph (b)(2) of the Use and Charges clause in § 18-7.702-12, before application of the credit for rent-free use) by a fraction the numerator of which is the amount of use of such property requested by the contractor under that contract determined in accordance with paragraph (b) (1) (iv) of the Use and Charges clause and the denominator of which is the sum of the previously authorized use of the property by the contractor for the period and the use requested under the proposed contract.

§ 18-13.502-4 Rent.

If competitive advantage is to be eliminated by charging rent, any bidder or subcontractor may use Government

production and research property after obtaining the written approval of each contracting officer having cognizance of such property. Rent shall be charged for such use in accordance with § 18–13.404. § 18-13.503 Negotiated procurement— Use of existing Government produc tion and research property.

In negotiated procurements, competitive advantage arising from the use of Government production and research property shall be eliminated by the use of an evaluation factor established in accordance with § 18-13.502, except when the contracting officer determines that the use of an evaluation factor would not affect the choice of contractors.

§ 18-13.504 Residual value to the Gov. ernment of special tooling and special test equipment to be acquired in competitively negotiated procurements.

(a) In competitively negotiated procurements that permit the acquisition of special tooling or special test equipment, an evaluation of the residual value of such property to the Government may be made where practicable in accordance with paragraphs (b) and (c) of this section. Such an evaluation is appropriate in cases where the contracting officer has determined that such property will have a reasonably foreseeable future usefulness and related residual value beyond the period of use on the award under consideration, and it is anticipated that the cost of such property as proposed by the several offerors may be a factor in making the award. Such an evaluation is not appropriate in cases where the resulting contract is to provide for the acquisition of the special tooling or special test equipment as an end item.

(b) The purpose of evaluating the residual value of special tooling or special test equipment is to apportion to each proposal under consideration only that part of the total cost of such property which represents the amount of useful life to be consumed during performance of the resulting contract. Accordingly, the proposed price or cost of such property may be reduced for evaluation purposes by an amount representing the residual value to the Government of such property. In estimating such residual value, the following factors shall be considered:

(1) The useful life of the special tooling and special test equipment to be acquired,

(2) Its adaptability for use by other contractors or by the Government,

(3) The reasonably foreseeable reIquirements 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 1 of special tooling or special test equip- ment 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.

(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 § 1813.308), 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. Examples of such savings include:

(1) Savings occurring as a direct result of activation of idle tools being maintained in idle status at known cost to the Government; and

(2) Avoidance of the cost of deactivation and placing active tools in layaway or storage, or of maintaining them in an idle state where the prospective costs are 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 layaway or storage shall not be evaluated when such costs will merely be deferred by the proposed use. § 18-13.506

Solicitations-Description

of evaluation procedure.

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 18-13.6-Administration of Government Production and Research Property

(b) Where no provisions are made pursuant to paragraph (a) of this section, the contractor shall be required to 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. With the prior written agreement of the contracting officer, 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 NASA 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 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.

§ 18-13.601-2 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 Govern

(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 § 18-7.702-14, 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 standby or layaway, he shall be reimbursed therefor to the extent provided under § 18-15.205-41.

§ 18-13.605 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 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 or the right to acquire title. In either case, consideration shall be given to the factors set forth in § 18-13.305-2(b) in determining the Government's need for retention of the special tooling and special test equipment.

(a) Except for nonseverable production and research property for which specific provision is made by § 18-13.307, the disposition of Government production and research property shall be in accordance with Part 18-24 of this chapter and NASA Management Instruction 4310.1, "Screening and Utilization of Excess Contractor Inventory" provided, that all Government production and research property listed in § 1813.312 awaiting disposition, shall be reported to the Procurement Office, NASA Headquarters (Code KDP-3).

(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. § 18-13.607

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.

Subpart 18-13.7-Contract Clauses § 18-13.701 Applicability.

(a) As used throughout this Subpart 18-13.7, the term "fixed-price contract" shall include any advertised or negotiated fixed-price type contract (see § 183.404) and any letter contract which will be converted into a fixed-price type definitive contract, but shall exclude small purchases made under Subpart 18-3.6.

(b) As used throughout this subpart, the term "cost-reimbursement contract" shall include any cost-reimbursement type contract (see § 18-3.405) and any letter contract which will be converted to a cost-reimbursement type definitive contract, but shall exclude facilities contracts (see § 18-13.101-11).

§ 18-13.702

Government property clauses for fixed-price contracts.

The appropriate clause of those set forth in paragraphs (a) and (c) of this section and in § 18-13.710 shall be used, in accordance with the instructions therein, in fixed-price contracts (except for experimental, developmental, or research work with educational or nonprofit institutions, where no profit to the contractor is contemplated).

(a) Government property clause for fixed-price contracts. Except as provided in paragraphs (b) and (c) of this section, the following clause shall be used in all fixed-price contracts under which the Government is to furnish to the contractor, or the contractor is to acquire, Government property;

GOVERNMENT PROPERTY (FIXED-PRICE)
(JULY 1970)

(a) Government-Furnished Property. The Government shall deliver to the Contractor, for use in connection with and under the terms of this contract, the property described as Government-furnished property in the Schedule or specifications, together with such related data and information as the Contractor may request and as may reasonably be required for the intended use of such property (hereinafter referred to as "Government-furnished property"). The delivery or performance dates for the supplies or services to be furnished by the Contractor under this contract are based upon the expectation that Government-furnished property suitable for use (except for such property furnished "as is") will be delivered to the Contractor at the times stated in the Schedule or, if not so stated, in sufficient time to enable the Contractor to meet such delivery or performance dates. In the event that Governmentfurnished property is not delivered to the Contractor by such time or times, the Con

tracting Officer shall, upon timely written request made by the Contractor, make a determination of the delay, if any, occasioned the Contractor thereby, and shall equitably adjust the delivery or performance dates or the contract price, or both, and any other contractual provision affected by any such delay, in accordance with the procedures provided for in the clause of this contract entitled "Changes." Except for Governmentfurnished property furnished "as is", in the event the Government-furnished property is received by the Contractor in a condition not suitable for the intended use the Contractor shall, upon receipt thereof, notify the Contracting Officer of such fact and, as directed by the Contracting Officer, either (i) return such property at the Government's expense or otherwise dispose of the property, or (li) effect repairs or modifications. Upon the completion of (1) or (ii) above, the Contracting Officer upon written request of the Contractor shall equitably adjust the delivery or performance dates or the contract price, or both, and any other contractual provision affected by the rejection or disposition, or the repair or modification, in accordance with the procedures provided for in the clause of this contract entitled "Changes." The foregoing provisions for adjustment are exclusive and the Government shall not be liable to suit for breach of contract by reason of any delay in delivery of Government-furnished property or delivery of such property in a condition not suitable for its intended use.

(b) Changes in Government-Furnished Property. (1) By notice in writing, the Contracting Officer may (1) decrease the property provided or to be provided by the Government under this contract, or (11) substitute other Government-owned property for property to be provided by the Government, or to be acquired by the Contractor for the Government, under this contract. The Contractor shall promptly take such action as the Contracting Officer may direct with respect to the removal and shipping of property covered by such notice.

(2) In the event of any decrease in or substitution of property pursuant to subparagraph (1) above, or any withdrawal of authority to use property provided under any other contract or lease, which property the Government had agreed in the Schedule to make available for the performance of this contract, the Contracting Officer, upon the written request of the Contractor (or, if the substitution of property causes a decrease in the cost of performance, on his own initiative), shall equitably adjust such contractual provisions as may be affected by the decrease, substitution, or withdrawal, in accordance with the procedures provided for in the "Changes" clause of this contract.

(c) Title. Title to all property furnished by the Government shall remain in the Government. In order to define the obligations of the parties under this clause, title to each item of facilities, special test equipment, and

special tooling (other than that subject to a "Special Tooling" clause) acquired by the Contractor for the Government pursuant to this contract shall pass to and vest in the Government when its use in the performance of this contract commences, or upon payment therefor by the Government, whichever is earlier, whether or not title previously vested. All Government-furnished property, together with all property acquired by the Contractor title to which vests in the Government under this paragraph, is subject to the provisions of this clause and is hereinafter collectively referred to as "Government property". Title to Government property shall not be affected by the incorporation or attachment thereof to any property not owned by the Government, nor shall such Government property, or any part thereof, be or become a fixture or lose its identity as personalty by reason of affixation to any realty.

(d) Property Administration. The Contractor shall comply with the provisions of the "Control of Government Property in Possession of Contractors" (Appendix B, NASA Procurement Regulation) as in effect on the date of the contract, which is hereby incorporated by reference and made a part of this contract.

(e) Use of Government Property. The Government property shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of this contract.

(f) Utilization, Maintenance, and Repair of Government Property. The Contractor shall maintain and administer, in accordance with sound industrial practice, and in accordance with applicable provisions of Appendix B of the NASA Procurement Regulation, a program for the utilization, maintenance, protection and preservation of Government property, until disposed of by the Contractor in accordance with this clause. In the event that any damage occurs to Government property the risk of which has been assumed by the Government under this contract, the Government shall replace such items or the Contractor shall make such repair of the property as the Government directs: Provided, however, That if the Contractor cannot effect such repair within the time required, the Contractor shall dispose of such property in the manner directed by the Contracting Officer. The contract price includes no compensation to the Contractor for the performance of any repair or replacement for which the Government is responsible, and an equitable adjustment will be made in any contractual provisions affected by such repair or replacement of Government property made at the direction of the Government, in accordance with the procedures provided for in the "Changes" clause of this contact. Any repair or replacement for which the Contractor is responsible under the provisions of this contract shall be accomplished by the Contractor at his own expense.