CONTRACT CLAUSES (7) In the event the Contractor is reimbursed or compensated for any loss or destruction of or damage to the Government property, caused by an excepted peril, he shall equitably reimburse the Government. The Contractor shall do nothing tc prejudice the Government's rights to recover against third parties the for any such loss, destruction or damage and, upon the request of the Contracting Officer, shall at the Government's expense, furnish to the Government all reasonable assistance and cooperation (including prosecution of suit and the execution of instruments of assignment in favor of the Government) in obtaining recovery. In addition, where a subcontractor has not teen relieved from liability for any loss or destruction of or damage to the Government property, the Contractor shall enforce the liability of the subcontractor for such loss or destruction of or damage to the Government property for the benefit of the Government. development, I *(8) If this contract is for the production, modification, maintenance or overhaul of aircraft, or otherwise involves the furnishing of aircraft by the Government, the "Ground and Flight Pisk" clause of this contract shall control, to the extent it is applicable, in the case of loss or destruction of, or damage to, aircraft. (*This subparagraph may be oritted where it is clearly inapplicable and shall be deleted when the Ground and Flight Risk clause is omitted pursuant 10.424 (b) (2).) to (c) Liability for Government Property Furnished for Repair or Other Services. The clause set forth below shall be included in contracts for repair (modification, rehabilitation) or other servicing of Government property, when such property is furnished to a contractor for that purpose. If a substantial quantity of parts or material will be furnished to the contractor, or a significant amount of scrap will result from the work to be performed, or if other Government property will be furnished to cr acquired by the contractor, the contract will also contain the appropriate "Government-furnished Property" "Government Property" clause and the Schedule of the contract shall provide that such property shall be governed by the terms of that clause. When minor repairs are obtained under small purchases procedures, the procedures of this paragraph will or not apply. NASA PROCUREMENT REGULATION GOVERNMENT PROPERTY Contracting officers the insurance under not require additional shall clearly indicate advantages to the Government. LIABILITY FOR GOVERNMENT PROPERTY FURNISHED FOR REPAIR OR OTHER SERVICES (MAY 1976) (a) The provisions of this clause shall govern with respect to any Government property furnished to the Contractor for repair or other services, and which is to be returned to the Government. Such property is hereinafter referred to as "Government property furnished for servicing" and shall not be subject to the provisions of any clause of this contract entitled "Government Furnished Property" or "Government Froperty." (b) The official accountable record record keeping, and financial control and reporting of the property subject to this clause shall be retained by the Government. The Contractor shall maintain adequate records and procedures to assure that the Government property furnished for repair or servicing may be readily accounted for and identified at all times while in his custody or possession or in the custody or possession cf any subcontractor. not (c) The Contractor shall be liable for any loss or destruction of or damage to the Government property furnished for repair or servicing (i) caused by the Contractor's failure to exercise such ca re and diligence as a reasonable prudent owner of similar property would exercise under similar circumstances; or (ii) sustained while the property is being worked upon and directly resulting therefrom, including but limited to, any repairing, adjusting, inspecting, servicing or maintenance operation. The Contractor shall not be liable for loss or destruction of or damage to Government property furnished for repair or servicing resulting from any other cause except to the extent that such loss, destruction, or da mage is covered by insurance (including self-insurance funds or reserves). (d) In addition to any insurance (including selfinsurance funds or reserves) carried by the Contractor and in effect on the date of this contract affording protection in whole or in part against loss or destruction of or damage to such Government property furnished for repair or servicing, the amount and coverage of which the Contractor agrees to maintain, the Contractor agrees to obtain such additional CFR TITLE 41 CHAPTER 18 CONTRACT CLAUSES insurance covering loss or destruction of or damage to Government property furnished to the Contractor for repair or servicing as may, from time to time, be required by the Contracting Officer. The requirements for such additional insurance shall be effected under the procedures established by the "Changes" clause of this contract. (e) The Contractor shall hold the Government harmless and shall indemnify the Government against all claims for injury to persons or damage to property of the Contractor or others arising from the Contractor's Lossession or use of the Government property furnished for repair or servicing or arising from the presence of said property on the premises or property of the Contractor. contracts 13.703 Government Property Clause for CostReimbursement Contracts. The following clause shall be used in cost-reimbursement contracts for supplies and services (except for experimental, developmental, or research work with educational or nonprofit institutions, where no profit to the contractor is contemplated) under which NASA is to furnish to the contractor, or the contractor is to acquire, Government property. GOVERNMENT PROPERTY (CCST-REIMBURSEMENT) (OCTOBER 1977) (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 "Governmentfurnished 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 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 Government-furnished property is not delivered to the Contractor by such time or times, the Contracting officer shall, upon timely written request made by the Contractor, make a determination of the delay, if any, NASA PROCUREMENT REGULATION GOVERNMENT PROPERTY cccasioned the Contractor and shall equitably adjust the estimated cost, fixed fee, or delivery or performance dates, or all of them, and any other contractual provisions affected by any such delay, in accordance with the procedures provided for in the clause of this contract entitled "Changes." In the event that 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 ctherwise dispose of the property cr (ii) effect repairs or modifications. Upon completion of (i) or (ii) above, the Contracting Officer upon written request of the Contractor shall equitably adjust the estimated cost, fixed fee, or delivery or performance dates, or all of them, and any other contractual provision affected by the return 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 te 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 (i) decrease the property furnished or to be furnished by the Government under this contract, or (ii) substitute other Government-owned property for property to be furnished by the Government, or to te 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 cf property pursuant to paragraph (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 Cfficer, 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 CFR TITLE 41 CHAPTER 18 CONTRACT CLAUSES substitution or may be affected by the decrease, 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. Title to all property purchased by the Contractor, for the cost of which the Contractor is entitled to be reimbursed as a direct item of cost under this contract, shall pass to and vest in the Government upon delivery of such Froperty by the vendor. Title to cther property, the cost of which is reimbursable to the Contractor under the contract, shall pass to and vest in the Government upon (i) issuance for use of such Froperty in the performance of this contract, or (ii) commencement of processing or use of such property in the performance of this contract, or (iii) reimbursement of the cost thereof by the Government in whole cr in part, whichever first occurs. All Government-furnished property, together with all property acquired by the Contractor title to which vests in the Government under this paragraph, are subject to the provisions of this clause and are hereinafter ccllectively referred to as "Government property." Title to the Government property shall not be affected by the incorporation or attachment thereof to any property not cwned by the Government, nor shall such Government property, or any fart thereof, be or become a fixture or lose its ident ity as personalty by reason of affixation to any realty. (d) Property Administration. The Contractor shall ccmply with the provisions of the "Control of Government Property in Possession of Contractors" (Appendix B, NASA Procurement Regulation), as in effect cn the date of the contract, which is hereby incorporated by referecnce 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 Froperty. 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, repair, protection preservation of Government property so as to assure its full availability and usefulness for the performance of and NASA PROCUREMENT REGULATION |