a contractor under a supply contract, but may be provided under a facilities contract when to do so is administratively desirable.

§ 18-13.303-50 Acquisition, use, and consolidated facilities contracts.

(a) A facilities acquisition contract is a facilities contract which contains terms and conditions covering Government provision of facilities to a contractor. It covers (1) contractor acquisition, construction, and installation of the facilities described in the contract schedule and (2) NASA furnishing of facilities when work, such as installation work, will be performed by the contractor at direct expense to the Government under the contract. A facilities acquisition contract does not contain authority for contractor use of facilities. When the facilities under the acquisition contract are acquired, installed, and accepted by the Government, accountability is tranferred to a facilities contract governing use.

(b) A facilities use contract is a facilities contract which contains terms and conditions covering the contractor's use of Government-owned facilities for which he is accountable. Facilities, in addition, are furnished to a contractor by the Government under a facilities use contract in the circumstances set forth in § 18-13.303-51.

(c) A consolidated facilities contract is a facilities contract which provides for both acquisition and use of facilities. § 18-13.303-51 Application of acquisition, use, and consolidated facilities

contracts.

(a) When a facilities contract is required to provide facilities under § 1813.303-1(a) and there is no existing facilities contract covering the use of facilities by the contractor, the acquisition type of facilities contract shall be used in conjunction with a facilities use contract, except that:

(1) A consolidated facilities contract may be used if it is anticipated that all foreseeable work with the contractor will continue to remain under the cognizance of the NASA installation entering into the facilities contract; and

(2) A facilities use contract shall be used, without a facilities acquisition contract, to cover Government furnishing of facilities to a contractor when the contract does not require direct reimbursement thereunder in connection with the furnishing of such facilities.

(b) If there is an existing facilities use contract, additional facilities may be provided by:

(1) A new facilities acquisition contract which provides for the transfer of the additional facilities to the existing use contract;

(2) If administratively convenient, by amendment of any existing uncompleted facilities acquisition contract; or

(3) In the circumstances described in paragraph (a) (2) of this section, by amendment of the existing use contract. If there is a existing consolidated facilities contract, additional facilities may be provided by its amendment, or by a facilities acquisition contract which provides for the transfer of the additional facilities to the use provisions of the consolidated facilities contract, whichever is more administratively convenient.

(c) Prior written advice regarding a proposed increased in facilities assistance shall be furnished the contracting officer of an existing facilities use contract or consolidated facilities contract.

§ 18-13.304 Furnishing existing Government-owned special tooling.

(a) General. It is the policy of NASA that existing special tooling to which the Government has title, or the right to acquire title pursuant to the Special Tooling clause in § 18-13.704, be offered to prospective contractors for use in performing Government contracts and subcontracts, if:

(1) To do so will not interfere with production or program schedules having a greater priority;

(2) To do so is otherwise advantageous to the Government; and

(3) Its use would be authorized pursuant to § 18-13.402 or § 18-13.403 were it furnished.

(b) Contract provisions. Special tooling shall be furnished pursuant to either the appropriate clause in Subpart 1813.7 or a facilities contract. In any case, the contract under which the special tooling is furnished shall contain a description thereof, and the terms and conditions applicable to its shipment to the plant of the contractor and to the cost of adapting and installing it. § 18-13.305 ing.

§ 18-13.305-1

Acquisition of special tool

General.

(a) Policy. It is the policy of NASA that contractors provide and retain title

to special tooling required for the performance of contracts to the maximum extent consistent with sound procurement objectives. Government acquisition of title or the right to title in special tooling creates substantial administrative burden, encumbers the competitive procurement process and frequently results in the retention of special tooling without advantage commensurate with such burden. In certain instances however, the acquisition of special tooling or rights thereto may help the Government obtain fair prices, recover the residual value of special tooling paid for by the Government, and increase competition in subsequent procurements by increasing the number of sources, where the tooling is susceptible of use by more than one contractor, considering its adaptability and all costs of movement. Additionally, the Government may require all or a substantial part of the tooling for subsequent in-house use. The particular circumstances of each procurement must be considered in determining whether the advantages of acquiring special tooling or rights thereto outweigh the disadvantages.

(b) Application of policy in competitive and noncompetitive procurements. In procurements where there is adequate price competition, the Government usually relies on the competition to obtain a fair charge for the amortization of special tooling provided by the contractor. Furthermore, in a competitive area, ownership of special tooling by one contractor is not likely to prevent others from competing in follow-on procurements. Thus, it is not generally appropriate for the Government to acquire special tooling or rights thereto in competitive procurements. However, where there is not adequate price competition, the Government typically pays the full cost of the special tooling regardless of who owns or has rights to it, and therefore it is usually appropriate for the Government to acquire special tooling or rights thereto. Moreover, Government ownership may make it easier to create competition in follow-on procurements. Where a decision is made not to take title to special tooling in a procurement without price competition, consideration shall be given to the need for special contract provisions covering contractor plans for future recovery of any initial special tooling costs in follow-on competitive procurements (see § 18-3.813).

§ 18-13.305-2 Fixed-price contracts.

(a) General. In fixed-price contracts where a certificate of current cost or pricing data is not required, special tooling or rights thereto shall not be acquired unless the contracting officer determines such acquisition to be advantageous to the Government, considering the factors set forth in paragraph (b) below.

(b) Criteria for acquisition. In deciding whether to acquire special tooling or rights thereto, or to exercise the Government's acquisition rights under contracts or subcontracts pursuant to the Special Tooling clause set forth in § 18-13.704, the following factors shall be considered:

(1) The current or probable future need of the Government for the items involved and the estimated cost of reproducing them if not acquired;

(2) Their estimated residual value;

(3) The administrative and other expense incident to reporting, record keeping, preparation, handling, transportation, and storage;

(4) The effect on pricing future contracts;

(5) The feasibility and probable cost of making the items available to other bidders or offerors in the event of future procurement;

(6) The amount offered by the contractor for the right to retain the items; and

(7) The contribution Government acquisition makes to future competition.

(c) Criteria for waiving special tooling provisions in subcontracts. In determining whether rights to acquire special tooling from subcontractors are not of substantial interest to the Government so as to permit the omission of special tooling provisions from the affected subcontractors pursuant to paragraph (j) of the Special Tooling clause set forth in § 18-13.704, the contracting officer shall consider the factors listed in paragraph (b) of this section. It is desirable that such determination be made before execution of the contract, to the extent practicable, in which case the price shall reflect the authorized omission of special tooling provisions in any affected subcontract. If this question is presented to the contracting officer after execution of the contract, he shall condition his determination upon securing the contractor's consent to an equitable reduction in the contract price to reflect any reduction in the price of the affected

subcontracts resulting from the omission of such provisions.

(d) Procedures. (1) If the contracting officer has decided not to acquire special tooling or rights thereto, he may include in the solicitation such information as he may have of current planning for future procurements of the item involved, consistent with security requirements. Offerors shall be advised in the solicitation that such statements are estimates and there is no assurance that any quantity will be procured.

(2) In formally advertised procurements, each item of special tooling to be acquired by the Government under the standards set forth above shall be clearly identified in the invitation for bids as a separate item, or by category if individual items are low in value, and the Special Tooling clause in § 18-13.704 shall not be used.

(3) In negotiated procurements, each item of special tooling to be acquired under the standards set forth above shall be identified as a separate item in the solicitation and contract to the maximum extent practicable, or by category if individual items are low in value. If such identification is impracticable, title to special tooling may be obtained through use of the Special Tooling clause in § 18-13.704. If the use of this clause will result in an undesirable acquisition of rights to some special tooling, the schedule shall specify the special tooling not covered by the clause.

(e) Protecting Government interest in contractor-owned special tooling. Where the Government does not acquire special tooling or the rights thereto pursuant to paragraph (d) of this section, but will pay for a substantial portion of the special tooling in the price paid for supplies or services, special provisions may be included in the schedule of a contract to give recognition to the equitable interest of the Government in the special tooling, if such interest is significant. For example:

(1) Where there is a distinct possibility that the Government eventually may decide to acquire title to the special tooling, the contract may provide for an option in the Government to acquire the special tooling at a specified price or for an amount to be determined in accordance with specified standards (the criteria set forth in paragraph (b) of this section shall be considered in exercising such options); or

(2) If the Government does not acquire or reserve the right to acquire title to the special tooling, the contract may provide for the contractor's future amortization of the special tooling under Government contracts.

§ 18-13.305-3 Cost-reimbursement type

contracts.

Title to special tooling under cost-reimbursement type contracts shall be acquired pursuant to the clauses set forth in §§ 18-13.703 and 18-13.707.

§ 18-13.306 Providing special test equip

ment.

§ 18-13.306-1 Furnishing existing special test equipment.

It is the policy of NASA to offer existing Government-owned special test equipment to contractors when advantageous to the Government in the light of the factors set forth in § 18-13.304. Government-owned components to be incorporated into special test equipment may also be offered in accordance with this policy. These components may be facilities, special test equipment, or cannibalized components of other special test equipment for which there is no further need.

§ 18-13.306-2 Acquisition of new special test equipment.

New special test equipment may be acquired by a contractor for the Government when:

(a) Advantageous to the Government in the light of the criteria set forth in § 18-13.305-2(b) for special tooling in fixed-price contract, and

(b) Existing Government-owned special test equipment or components thereof cannot be made available.

§ 18-13.306-3 Contract provisions for acquiring special test equipment.

(a) In formally advertised procurements, each item of special test equipment to be acquired by the Government shall be clearly identified in the invitation for bids as a separate item, or by category if individual items are low in value.

(b) In negotiated procurements, with respect to special test equipment the exact nature of which is known when the contract is signed, the contract shall identify each item of special test equipment to be acquired by the Government as a separated item or by category if individual items are low in value.

to special tooling required for the performance of contracts to the maximum extent consistent with sound procurement objectives. Government acquisition of title or the right to title in special tooling creates substantial administrative burden, encumbers the competitive procurement process and frequently results in the retention of special tooling without advantage commensurate with such burden. In certain instances however, the acquisition of special tooling or rights thereto may help the Government obtain fair prices, recover the residual value of special tooling paid for by the Government, and increase competition in subsequent procurements by increasing the number of sources, where the tooling is susceptible of use by more than one contractor, considering its adaptability and all costs of movement. Additionally, the Government may require all or a substantial part of the tooling for subsequent in-house use. The particular circumstances of each procurement must be considered in determining whether the advantages of acquiring special tooling or rights thereto outweigh the disadvantages.

(b) Application of policy in competitive and noncompetitive procurements. In procurements where there is adequate price competition, the Government usually relies on the competition to obtain a fair charge for the amortization of special tooling provided by the contractor. Furthermore, in a competitive area, ownership of special tooling by one contractor is not likely to prevent others from competing in follow-on procurements. Thus, it is not generally appropriate for the Government to acquire special tooling or rights thereto in competitive procurements. However, where there is not adequate price competition, the Government typically pays the full cost of the special tooling regardless of who owns or has rights to it, and therefore it is usually appropriate for the Government to acquire special tooling or rights thereto. Moreover, Government ownership may make it easier to create competition in follow-on procurements. Where a decision is made not to take title to special tooling in a procurement without price competition, consideration shall be given to the need for special contract provisions covering contractor plans for future recovery of any initial special tooling costs in follow-on competitive procurements (see § 18-3.813).

§ 18-13.305-2 Fixed-price contracts.

(a) General. In fixed-price contracts where a certificate of current cost or pricing data is not required, special tooling or rights thereto shall not be acquired unless the contracting officer determines such acquisition to be advantageous to the Government, considering the factors set forth in paragraph (b) below.

(b) Criteria for acquisition. In deciding whether to acquire special tooling or rights thereto, or to exercise the Government's acquisition rights under contracts or subcontracts pursuant to the Special Tooling clause set forth in § 18-13.704, the following factors shall be considered:

(1) The current or probable future need of the Government for the items involved and the estimated cost of reproducing them if not acquired;

(2) Their estimated residual value;

(3) The administrative and other expense incident to reporting, record keeping, preparation, handling, transportation, and storage;

(4) The effect on pricing future contracts;

(5) The feasibility and probable cost of making the items available to other bidders or offerors in the event of future procurement;

(6) The amount offered by the contractor for the right to retain the items; and

(7) The contribution Government acquisition makes to future competition.

(c) Criteria for waiving special tooling provisions in subcontracts. In determining whether rights to acquire special tooling from subcontractors are not of substantial interest to the Government so as to permit the omission of special tooling provisions from the affected subcontractors pursuant to paragraph (j) of the Special Tooling clause set forth in § 18-13.704, the contracting officer shall consider the factors listed in paragraph (b) of this section. It is desirable that such determination be made before execution of the contract, to the extent practicable, in which case the price shall reflect the authorized omission of special tooling provisions in any affected subcontract. If this question is presented to the contracting officer after execution of the contract, he shall condition his determination upon securing the contractor's consent to an equitable reduction in the contract price to reflect any reduction in the price of the affected

subcontracts resulting from the omission of such provisions.

(d) Procedures. (1) If the contracting officer has decided not to acquire special tooling or rights thereto, he may include in the solicitation such information as he may have of current planning for future procurements of the item involved, consistent with security requirements. Offerors shall be advised in the solicitation that such statements are estimates and there is no assurance that any quantity will be procured.

(2) In formally advertised procurements, each item of special tooling to be acquired by the Government under the standards set forth above shall be clearly identified in the invitation for bids as a separate item, or by category if individual items are low in value, and the Special Tooling clause in § 18-13.704 shall not be used.

(3) In negotiated procurements, each item of special tooling to be acquired under the standards set forth above shall be identified as a separate item in the solicitation and contract to the maximum extent practicable, or by category if individual items are low in value. If such identification is impracticable, title to special tooling may be obtained through use of the Special Tooling clause in § 18-13.704. If the use of this clause will result in an undesirable acquisition of rights to some special tooling, the schedule shall specify the special tooling not covered by the clause.

(e) Protecting Government interest in contractor-owned special tooling. Where the Government does not acquire special tooling or the rights thereto pursuant to paragraph (d) of this section, but will pay for a substantial portion of the special tooling in the price paid for supplies or services, special provisions may be included in the schedule of a contract to give recognition to the equitable interest of the Government in the special tooling, if such interest is significant. For example:

(1) Where there is a distinct possibility that the Government eventually may decide to acquire title to the special tooling, the contract may provide for an option in the Government to acquire the special tooling at a specified price or for an amount to be determined in accordance with specified standards (the criteria set forth in paragraph (b) of this section shall be considered in exercising such options); or

(2) If the Government does not acquire or reserve the right to acquire title to the special tooling, the contract may provide for the contractor's future amortization of the special tooling under Government contracts.

§ 18-13.305-3 Cost-reimbursement type

contracts.

Title to special tooling under cost-reimbursement type contracts shall be acquired pursuant to the clauses set forth in §§ 18-13.703 and 18-13.707.

§ 18-13.306 Providing special test equip

ment.

§ 18-13.306-1 Furnishing existing special test equipment.

It is the policy of NASA to offer existing Government-owned special test equipment to contractors when advantageous to the Government in the light of the factors set forth in § 18-13.304. Government-owned components to be incorporated into special test equipment may also be offered in accordance with this policy. These components may be facilities, special test equipment, or cannibalized components of other special test equipment for which there is no further need.

§ 18-13.306-2 Acquisition of new special test equipment.

New special test equipment may be acquired by a contractor for the Government when:

(a) Advantageous to the Government in the light of the criteria set forth in § 18-13.305-2(b) for special tooling in fixed-price contract, and

(b) Existing Government-owned special test equipment or components thereof cannot be made available.

§ 18-13.306-3 Contract provisions for acquiring special test equipment.

(a) In formally advertised procurements, each item of special test equipment to be acquired by the Government shall be clearly identified in the invitation for bids as a separate item, or by category if individual items are low in value.

(b) In negotiated procurements, with respect to special test equipment the exact nature of which is known when the contract is signed, the contract shall identify each item of special test equipment to be acquired by the Government as a separated item or by category if individual items are low in value.