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GOVERNMENT PROPERTY

cost of $25,000 or more shall be considered on an item ty item basis.

(c) The approvals under subparagraph (a) may be

granted only when it is in the interest of the Government (i) to keep the equipment in a high state of cperational readiness through regular usage; (ii) because substantial savings to the Government would accrue through overhead cost sharing and receipt of rental; or (iii) to avoid an inequity to the contractor who is required, at the Government's request, to retain the equipment in place, often intermingled with contractor-owned equipment required for commercial [roduction. Approval for non-Government use shall be for a period of not more than one year. Approval for rcn-Government use in excess of 25% shall be for a period of not less than three months.

(d) Rent-free use of Government property for independent research and development generally will be discouraged except in unusual circumstances where it is determined that:

(i) such use is clearly in the best interests of the Government (for example, the project can reasonably be expected to be of value in specific Government [rograms), and

(ii) the policy set forth in 13.210 is adhered to in that no competitive advantage will accrue to the contractor through such authorized use of Government property.

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

13.413 Maintenance.

13.413-1 Facilities Contracts.

(a) To the extent practicable, the Schedule of each facilities contract containing the Maintenance clause set forth in 7.702-14 shall specify cr incorporate by reference a normal maintenance program.

(b) Where no provisions are made pursuant to (a) above, 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.

CFR TITLE 41 CHAPTER 18

GOVERNMENT PROPERTY ADMINISTRATION

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Any normal maintenance program that is agreed to pursuant to either (a) or (b) above 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 cfficer, such program may also provide for:

(i) 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

(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 cf any contract under which such Government Froduction and research property is provided may

NASA PROCUREMENT REGULATION

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property when appropriate. 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.

(a) A facilities contract may include appropriate Frovisions for maintenance and storage of Government Froduction 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. The se provisions may 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 Government's need for retaining all special tooling and special test equipment, not currently in use, to which it has or 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.

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13.418 Termination of Facilities Contracts. 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 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 Froperty.

(a) Rent computed in accordance with 13.420 shall be charged, except when use without charge is authorized by 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.

(a) Except as provided below, the rent for all Government production and research property shall be 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 plants operated by private contractors on a fee basis;

(ii) items of equipment which are of such size or complexity, or have such performance 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.

CFR TITLE 41 CHAPTER 18

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