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may c Subpart 18–13.4–Use and Rental of (ii) Subcontracts of any tier if the Government Production and Re- contracting officer having cognizance

over the prime contract concerned has search Property

authorized use without charge by: eened. § 18–13.401 Policy.

(a) Approving a subcontract specifi

cally authorizing such use; See Story It is the policy of NASA to put Government production and research prop

(6) Including such authorization in

the prime contract; or erty which is in the possession of a con

(c) By otherwise approving such use Tency : tractor or subcontractor to the greatest

in writing; possible use in the performance of Gov

(iii) Contracts of foreign government ernment contracts or subcontracts, so

if use without charge has been authorized long as such use does not confer a com

in writing pursuant to § 18–13.406; or petitive advantage on the contractor or

(iv) Research, development, or edusubcontractor contrary to the policies set

cational work by nonprofit organizations forth in Subpart 18-13.5.

if the contracting officer having cogni(a) Industrial Plant Equipment (IPE)

zance of such property approves such use is acquired by NASA for use by a con

in writing. tractor in performing NASA work only

(2) Provided, as to subparagraph (1) when the contractor is unable or unwill

(i) and (ii) of this paragraphing to furnish the IPE, and it is deemed

(i) The procedures set forth in Subin the best interest of the Government to

part 18-13.5 are complied with; provide such equipment to meet required AH

(ii) The contracting officer having cogdelivery schedules for NASA materials

nizance of the prime contract determines and services. Existing Government

that the Government will receive adeowned IPE may be provided contractors

quate consideration for the use of the when substantial savings to the Govern

property through reduced costs for the ment will accrue, and no competitive ad

supplies or services or otherwise; and vantage is conferred.

(iii) A concurrence in the proposed (b) There are instances where Gov

use of the property in accordance with ernment-owned IPE is required to re

paragraphs (b) and (c) of this section main in a contractor's plant to perform

is obtained. NASA work, but where the full capacity

(b) (1) A contracting officer desiring of the equipment is not required for this

to authorize use of Government producwork. In such instances, contractors may be authorized to make use of the equip

tion and research property under the ment for commercial work under three

cognizance of another contracting officonditions where such authorization may

cer may request the latter to give his

concurrence in such use. If concurrence be in the interest of the Government:

is denied, the resolution procedures set (1) To keep the equipment in a high

forth in paragraph (c) of this section state of operational readiness through

shall be employed. regular usage;

(2) Unless its use is authorized by the (2) Where substantial savings to the

solicitation, each solicitation shall reGovernment would accrue through over

quire that any contractor or subcontrachead cost sharing and receipt of rentals,

tor desiring to use Government produc

tion and research property in his (3) To avoid an inequity to the con- possession in the performance of the tractor who is required, at the Govern- proposed Government contract or subment's request, to retain the equipment contract shall request the contracting in place, often intermingled with con- officer having cognizance of such proptractor-owned plant equipment required erty to give his written concurrence in for the production of commercial orders.

such use. Such concurrence shall be given

whenver possible and shall contain any $ 18–13.402 Authorizing a contractor to use Government production and re

information required by $ 18–13.502 or search property without charge.

§ 18–13.503.

(c) If the contracting officer having (a) A contractor may use Government

cognizance of Government production production and research property with- and research property refuses to give the

concurrence called for by paragraph (b) (1) In the performance of

(2) of this section, the contractor may (i) Prime contracts which specifically report the matter to the contracting ofauthorize use without charge;

ficer, who may then request permission

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out charge:

of the contracting officer having cogni

USE OF GOVERNMENT FACILITIES ON A zance over such property to authorize

No-CHARGE BASIS (OCTOBER 1967) its use. The latter shall respond promptly The Contractor is authorized to use on a to this request. In the event of a dis- no-charge basis, in the performance of this agreement between the two contracting contract, the Government-owned facilities officers, they shall refer the matter to the provided to him under the facilities contract head of their respective installation as

identified below: promptly as may be practicable. If the (b) Where no-charge use of facilities latter are unable to reach agreement, is authorized for subcontract work which they shall refer the matter to their re- will support the related prime procurespective higher echelons of procurement ment contract, the names of subconauthority for resolution. Any intergov- tractors, with the respective facilities ernmental issue shall be referred to the contract numbers and items to be proDirector of Procurement, NASA Head- duced, shall be inserted in the related quarters for resolution.

procurement contract, or modification (d) Notwithstanding paragraph (a) of thereof, pursuant to § 18–13.402-53. this section, a contract may be modified to provide for the use of Government

$ 18–13.402-52 Related procurement production and research property on a

contracts requiring the provision of rent-free basis, if the contract is equi

additional facilities. tably adjusted to reflect the elimination (a) Prior to executing a related proof rent and any other amount attributa- curement contract in which it is agreed ble thereto.

that additional Government facilities $ 18–13.402-50 Authorization.

shall be provided, the contracting officer

shall determine whether the proposed For purposes of documentation and contractor has in existence a facilities administration, a copy of any authoriza- contract with NASA. If so, the contracttion to use Government provided pro- ing officer shall arrange with the conduction and research porperty shall be tracting officer administering the facilifurnished by the contracting officer ties contract to have the proposed granting the authorization to the con- additional facilities included under the tracting officer requesting the authority facilities contract and the related proto use the property. A record of contracts curement contract shall specify such arand subcontracts on which the property rangement. If the proposed contractor is authorized to be used shall be in- does not have a facilities contract with cluded in the file of the contract under NASA, the contracting officer shall either which the property is accountable. Docu- enter into a separate facilities contract mentation of any authorization to use or provide the required facilities under Government property in the performance the related procurement contract, subof a supply or service contract shall ac- ject to the limitations set forth in company each supply or service contract § 18–13.303–1. submitted to NASA Headquarters for (b) If a related procurement contract, review.

or a modification thereof, is negotiated § 18-13.402–51 Provisions of related

on the basis that additional facilities will procurement contracts requiring the

be provided to the contractor under a use of Government facilities in the separate facilities contract (either dipossession of a contractor.

rectly by the Government or by contracWhen a related rocurement contract,

tor acquisition at Government expense),

the following Facilities clause shall be or modification thereto is negotiated on

inserted in the schedule of such related the basis of the use of facilitise which have been previously provided (or are

procurement contract: currently being provided under an ex

FACILITIES (JULY 1968) isting contract) by NASA or another (a) The terms and conditions of the conGovernment agency to the prime con- tract are based on the providing to the Contractor or his subcontractors, the follow- tractor, under separate facilities contract, of ing procedures shall apply:

certain facilities which are described in (a) Facilities which are authorized for

Such facilities, as determined by the

Contracting Officer shall be either furnished use by a prime contractor shall be identi

to the Contractor directly by the Governfied by the facilities contract number.

ment, or the Contractor shall be authorized If use of the facilities is authorized on a

to acquire them at Government expense. The no-charge basis, the contract shall con- parties hereby agree to enter into such a tain the following clause:

separate facilities contract, or to supplement

thorized to use such facilities on a no-charge basis for the subcontract items listed below, and the subcontract shall so provide:


Contract Subcontract Subcontractor Number


an existing facilities contract to cover such additional facilities, as the case may be, at the earliest practicable date. Any separate facilities contract shall be made using such applicable contract form, if any, as is prescribed by the NASA Procurement Regulation in effect on the date such facilities contract is executed and shall provide that such facilities may be used rent-free in the performance of this contract.

(b) It is agreed that if such facilities are not provided at the time and to the extent as indicated in paragraph (a) above, an equitable adjustment shall, upon timely written request of the Contractor, be made in the terms and conditions of this contract to the extent required by reason of the Government's failure to provide such facilities.

(c) In the blank in paragraph (a) of the foregoing clause, specifically identify the facilities to be provided, either (1) by referencing the contractor's proposal or that portion thereof which describes the additional facilities to be provided, or (2) by referencing any other document which identifies and describes the facilities, or (3) by identifying and describing in the clause itself the facilities which have been agreed upon as hose to be provided. Where rent-free use will not be authorized, the clause shall be modified to delete the reference to such use. & 18-13.402-53 Facilities for subcon

tractors on a no-charge basis. If it is desired to permit a contractor to let certain of his subcontractors have the benefit of the use of Government facilities in the possession of such subcontractors on a no-charge basis, whether or not the prime contractor is to have the use of facilities on a no-charge basis, the Use of Government Facilities by Subcontractors clause set forth below shall be included in the related procurement contract: Provided, That (a) the price or the fee of the prime contract is negoti. ated on the specific understanding that the use of the facilities on a no-charge basis will be permitted in the performance of the specified subcontract items by the specified subcontractors to be set forth in paragraph (a) of the Use of Government Facilities by Subcontractors clause and (b) the subcontractor is not placed in a favored competitive position. USE OF GOVERNMENT FACILITIES BY SUBCON

TRACTORS (APRIL 1962) (2) The following subcontractors having Government-owned facilities provided under the Facilities contracts set forth below, in effect on the date of this contract, are au

(b) If the Contractor enters into other subcontracts with subcontractors who have Government-owned facilities provided to them under Facilities contracts which provide that no-charge use may be authorized, the Contracting Officer may authorize the use of such facilities on a no-charge basis: Provided :

(i) He determines that such use will not give the subcontractor a favored competitive position; and

(ii) This contract is amended to reflect adequate consideration to the Government for the use of such facilities on a no-charge basis. Such subcontracts shall specifically authorize the no-charge use, and require the written approval of the Contracting Officer. No modification to this contract will be required, as provided in (ii) above, if the Contracting Officer determines that an elimination of charge for use of such facilities will, of itself, result in an adequate decreased cost to the Government under this contract. (c) If

the Government-owned facilities. provided to the Contractor or any subcontractor hereunder on a no-charge basis are increased or decreased or do not remain available during the performance of this: contract, or if any change is made in the terms and conditions under which they are made available, such equitable adjustments as may be appropriate will be made in the terms of this contract, unless such increase or decrease was contemplated in the establishment of the price of this contract or a subcontract.

(d) The Contractor agrees that he will not directly or indirectly, through overhead charges or otherwise, include in the price of this contract, or seek reimbursement under this contract for, any rental charge paid by the Contractor for the use on other contracts of the facilities referred to herein. Any subcontract hereunder which authorizes the subcontractor to use Government facilities on a no-charge basis shall contain a provision to the same effect as this paragraph (d). § 18–13.402-54 Contract provisions

where facilities are provided under a contract other than a facilities con

tract. (a) Where Government-owned facilities are to be acquired or fabricated by a. contractor under a contract other than a facilities contract, the following clause, with the schedule terms called for therein, shall be included in the contract, in addition to the appropriate Government Property clause: FACILITIES ACQUIRED OR FABRICATED (MAY 1965)

Subject to the approval of the contracting officer, the contractor may acquire or fabricate the facilities listed in the schedule of the contract. Costs incurred therefor will be allowable costs, provided that the contractor shall have no obligation to acquire or fabricate facilities and the Government shall have no obligation to reimburse any amount for such facilities in excess of the total estimated facilities costs set forth in the Schedule, unless this contract is amended to increase such amount. The facilities acquired or fabricated shall be considered Government property and subject to the provisions of the Government Property clause of this contract.

(b) Where existing facilities are to be furnished under a contract containing the appropriate Government Property clause of Subpart 18–13.7, no separate clause covering such facilities generally is necessary. The items of facilities will be listed or specified in the schedule as Government-furnished property. However, if installation of such existing facilities to be furnished by the Government is to be performed by the contractor at Government expense, the contract schedule shall so state and set forth the total estimated cost therefor. § 18–13.403 Rental of Government pro

duction and research property. (a) When use of Government production and research property is authorized by the contracting officer having cognizance of the property, rent computed in accordance with § 18–13.404 shall be charged for such use except where use without charge is authorized under $ 18– 13.402. If this contracting officer refuses to grant such authorization with respect to work for the Government, the contracting officer having cognizance of the procurement may refer the matter to the higher echelons of authority referred to in § 18–13.402(c).

(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 § 18–13.301 (e)).

(c) Each contracting officer having cognizance of Government production and research property shall be responsible for the collection of rent thereon.

§ 18–13.404 Rental rates and policies

applicable to the use of Government

production and research property. (a) Except as provided in paragraph (b) of this section, the rent for all Government production and research property shall be computed in accordance with the “Use and Charges” clause set forth in § 18–7.702-12 for facilities. Rent for machine tools (Federal Supply Classes 3405, 3408, 3410, 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 Director of 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 paragraph (a) of this section shall not be applicable to:

(1) Wholly Government-owned plants operated by private contractors on a fee basis;

(2) 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: Provided, That the Office of Emergency Preparedness has approved the general program involving such equipment;

(3) Government production and research property left in place or installed on contractor-owned property for mobilization or future production purposes of NASA: Provided, That a rental charge computed in accordance with paragraph (a) of this section shall apply to so much of such property or its capacity as may be used or authorized for use; or

(4) Such other Government production and research property as may be otherwise excepted by the Office of Emergency Preparedness. [36 F.R. 25118, Dec. 29, 1971] § 18–13.405 Non-Government use of in

dustrial plant equipment (IPE). (a) The prior written approval of the contracting officer is required for any non-Government use of active Government-owned industrial plant equipment (see B.102–11). Before non-Government use exceeding 25 percent may be authorized, prior approval of the Director of Procurement shall be obtained. In addition, non-Government use of machine tools, and secondary metal-forming and cutting machines (Federal Supply Classes 3405, 3408, 3410, 3411 through 3419 and 3441 through 3449) in excess of 25 percent shall require the advance approval of the Office of Emergency Preparedness which shall be obtained through the Director of Procurement with the concurrence of the Director of Facilities. Requests requiring the approval of the Director of Procurement or the Office of Emergency Preparedness shall be submitted at least 6 weeks in advance of the projected use and shall include:

(1) The total number of active IPE items involved and total acquisition cost thereof; and

(2) An itemized listing of active equipment having an acquisition cost of $25,000 or more, showing for each such item the nomenclature, production equipment code, year of manufacture, and the acquisition cost.

(b) The percentage of Government and non-Government use shall be computed on the basis of time available for use. For this purpose the contractor's normal work schedule, as represented by scheduled production shift hours, shall be used. All active industrial plant equipment located at any single plant having a unit acquisition cost of less than $25,000 may be averaged over a quarterly period. Equipment having a unit acquisition cost of $25,000 or more shall be considered on an item by item basis.

(c) The approvals under paragraph (a) of this section may be granted only when it is in the interest of the Government (1) to keep the equipment in a high state of operational readiness through regular usage; (2) because substantial savings to the Government would accrue through overhead cost sharing and receipt of rental; or (3) 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 production. Approval for non-Government use shall be for a period of not more than 1 year. Approval for non-Government use in excess of 25 percent shall be for a period of not less than 3 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:

(1) 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 programs), and

(2) The policy set forth in § 18–13.501 is adhered to in that no competitive advantage will accrue to the contractor through such authorized use of Government property. (36 F.R. 6972, Apr. 13, 1971, as amended at 36 F.R. 25119, Dec. 29, 1971) § 18–13.406 Rent-free use of Govern.

ment production and research property on work for foreign govern

ments. Upon the request of a foreign government, or a contractor certifying that he is acting on behalf of a foreign government, Government production and research property located in the United States, its possessions, or Puerto Rico, may be authorized for use without charge on contracts of foreign government or subcontracts thereunder if:

(a) Such use is approved by the Director of Procurement with the concurrence of the Director, Office of Facilities, NASA Headquarters;

(b) Such use is legally authorized;

(c) The foreign government's placement of the contract directly with the contractor is consistent with the best interest of the United States;

(d) It appears that the foreign government will place the contract with the contractor whether or not such use is authorized, or that no competitive pricing advantage will accrue to the contractor by virtue of such use;

(e) The contractor agrees that no charge for the use of such property will be included in the price charged the foreign government under the contract; and

(f) Such use will not interfere with foreseeable requirements of the United States. § 18–13.407 Use of Government produc

tion and research property without

charge by nonprofit organizations. The contracting officer cognizant of Government production and research property in the possession of a nonprofit organization may approve the use of such property by such organization without

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