DISPOSITION OF PERSONAL PROPERTY IN POSSESSION OF CONTRACTORS which provide to the Government an option to purchase or other residual interests (including the right to use until expiration of the lease) will be reported to the Property Management Office of the Installation on Standard Form 120, "Report of Excess Personal Property". Normally the time required for acquisition studies required to select replacement equipment makes it possible to project the anticipated release date 180 days before the equipment is available for transfer. ADPE should be reported as soon as it is possible to project the release date. The following minimum reporting schedule shall, however, apply. (1) Government-owned ADPE will be reported upon receipt of notice of complete termination or when it is determined that the property will no longer be needed on the contract. The release date assigned will be the last day of the plant clearance period or 180 days after the property becomes inactive. In the event of changes in release date, revised reports will be submitted. (2) Leased ADPE, the total cost of which is charged to one or more cost-reimbursement type contracts, will be reported when it is determined that the property (or a major portion thereof) will no longer be needed on the contracts. In order to preclude unnecessary lease cost, the release date established shall not extend ADPE on rental beyond the date it can be released to the lessor. Prompt reporting of leased ADPE is necessary in order to afford an opportunity to reutilize the property and protect the Government's equity. (b) With respect to leased equipment, the total cost of which is charged to one or more cost-reimbursement type contracts, a quotation shall be requested from the lessor projecting the reduced price at which the equipment may be purchased based on accumulated rental credits through the anticipated release date. A copy of this quotation should be attached to the Standard Form 120, but submission of the Standard Form 120 should not be delayed pending receipt of this information. If it is not available at that time, it should be provided when received. (c) The following information will be reported on Standard Form 120: (ii) a separate attachment, showing the time in service for each com- (iii) a list of compilers and other software packages (such as executive routines), engineering drawings and maintenance manuals available with the equipment; and (iv) in the instances of a complete equipment configuration, information regarding power and air conditioning requirements. (d) The Property Management Office of the installation shall control ADPE reported excess. Shipments shall be made upon receipt of requests approved by the Property Management Office. METHODS OF DISPOSAL 24.206 Sale of Surplus Contractor Inventory. 24.206-1 General. (a) Surplus contractor inventory to be disposed of by sale will be reported to the appropriate General Services Administration regional office as required by Subchapter H, Part 101-45 of the Federal Property Management Regulation. Should the General Services Administration elect not to conduct the sale and provides authorization to the NASA installation to conduct the sale, it will be conducted, in accordance with the procedures provided in this Part, by the contractor having possession of the property. The contractor is required to use his best efforts to sell contractor inventory in the manner, at the times, to the extent, and at the prices approved by the plant clearance officer. The contractor is not required to extend credit to any purchaser. (b) Surplus contractor inventory included in the contractor's inventory schedules which has not been utilized or donated under 24.205 and 24.207 or retained at cost pursuant to 24.202, shall be sold in accordance with 24.206-2 at any time after notification by the plant clearance officer that screening has been accomplished. Any such purchase, retention, or sale shall be subject to the approval of the plant clearance officer. (See 24.211 as to review by the Property Disposal Review Boards.) (c) Description of Property. Description of property must be adquate for identification by prospective bidders. Accuracy is essential and commercial terminology desirable. The original manufacturer and brand name shall be included, if appropriate. When property is boxed or packaged, information as to type of packaging shall be included. (d) Condition. Condition shall be stated as "used" or "unused" and shall not be described as new. If unused property is still in manufacturer's original containers, a statement to that effect shall be included. Appropriate qualifying statements shall supplement the basic noun description, i.e., "well preserved," "some surface rust," "repairs required," etc. Condition codes shall not be used. Because of its non-specific meaning to the trade, the term "salvage" risks downgrading of the property in the bidder's viewpoint and shall not be used. (e) Lotting shall be in accordance with the following: (i) unused items shall be lotted by make or manufacturer, except when quantities or dollar values are small; (ii) commercially similar items shall be lotted together when practicable; (iii) used and unused items shall be lotted separately, unless the quantity, value, or nature is such that it is uneconomical to sell senarately; (iv) within the bounds of economical considerations, the size of lots shall be influenced by an effort to encourage bidding by small businesses or individuals; (v) no lot shall be so small that the administrative cost of selling will be disproportionate to the anticipated proceeds; DISPOSITION OF PERSONAL PROPERTY IN POSSESSION OF CONTRACTORS (vi) an alternate bid for groups of items or for the entire offering may be solicited by use of an additional item described as follows: This item consists of all property listed and described in Items to inclusive. Award under this item may be made only if the highest acceptable bid on this item is equal to, or greater than, the total of the highest acceptable bids on Items inclusive. (f) Basis of Sale shall be: to (i) Unit Price Basis. Items offered for sale shall require the bid price to be stated in terms of the quantity or weight generally applied by industry in the commercial sale of such items. (ii) Lot Price Basis. When a sales offering is made on a lot price basis, bids shall be requested only for the entire lot. Use of the lot price basis shall be held to a minimum, since it precludes adjustments. The lot price basis shall be used only when property cannot be sold by unit measure or the potential monetary recovery is small. (g) Format of Invitation. In large sales, a summary list of items offered shall be set forth and used as an item bid sheet, with detailed item descriptions on attached sheets. (h) Bidder's Lists. The plant clearance officer shall assure that commodity bidder's lists sufficient to obtain adequate competition in the sale of contractor inventory are maintained. The plant clearance officer may obtain additional listings, as required, from the appropriate General Services Administration regional office. Use of listings maintained by GSA is encouraged when extremely large quantities of property, special commodities, or unusual geographic location is involved. (i) Auction, Spot Bid, and Retail Sales. Auction, spot bid, and retail sales shall not be utilized for selling contractor inventory, unless approved on an individual case basis by the Director, Property and Supply Division, NASA Headquarters. 24.206-2 Competitive Sales. (a) General. Surplus contractor inventory shall be offered for sale on a competitive basis except as provided in Subchapter H, paragraph 101-45.304-2 of the Federal Property Management Regulation. To the extent feasible, subcontractors and suppliers should be solicited when additional competition is likely to result. The plant clearance officer shall provide the contractor with instructions relative to the method of soliciting bids and the basis for offering the property for sale (i.e., serviceable or scrap). The contractor's overall program, including all forms and procedures, shall be evaluated by the plant clearance officer and shall be subject to his surveillance. To the extent necessary, the plant clearance officer may reserve the right to approve individual sales offerings prior to distribution. (b) Solicitation of Bids. Contractors shall solicit bids by formal invitations and shall follow the formal bid procedures as provided below: (i) bids shall be solicited a minimum of 15 calendar days in advance of the opening of bids to allow bidders an adequate opportunity to inspect the property and prepare and formally submit bids; METHODS OF DISPOSAL (ii) invitations shall be circulated to a sufficient number of prospective bidders to assure wide competition, including the original suppliers and those prospective bidders designated by the plant clearance officer and the contractor; (iii) in addition to mailing or delivering a notice of the proposed sale to all prospective bidders, the contractor may supplement this sales method by (A) displaying a notice of the proposed sale in appropriate public places; (B) displaying a notice of the proposed sale in appropriate trade journals or magazines, or (C) publishing a notice of the proposed sale in a newspaper of general circulation in the locality in which the property is located, when the results of such paid commercial advertising is expected to justify the additional expenses involved. (iv) When the acquisition cost of property to be sold at one time, at one place, is $250,000 or more, notice of each such proposed sale shall be transmitted to the U.S. Department of Commerce, Room 1300, 433 West Van Buren Street, Chicago, Illinois 60607. The notice shall be sent at as early a date as possible in advance of the sale but at least 20 days prior to the date when the bids will be opened, or, in the case of spot bid or auction sale, when the sale will be conducted. Such notice shall be transmitted by fastest mail available and shall be in synopsis form suitable for printing direct from the text so transmitted without editing or condensing. Double space lines will be used to describe each sales action; and the length of the line should be approximately 65, but not to exceed 69 character spaces and will contain the following information in the order listed: the name and address of the contractor who will issue the invitation; the name or title, address, and telephone number of the official from whom copies of the sales offering and other information can be obtained; a description of the property to be sold; when deemed desirable, the total estimated acquisition cost; the number of the invitation or sale; the date of the sale or bid opening, the types of sale, i.e., sealed bid, spot bid, or auction; and the location(s) of the property. The utmost care should be exercised in describing the types of property to be sold in order to assure interest by the maximum number of potential buyers but, at the same time, condense the information so that minimum space in the Department of Commerce publication will be required for printing. Where the acquisition cost is less than $250,000, such notice may be transmitted, when considered desirable, in accordance with the produres prescribed above. (c) Formal Invitations. Sale by formal invitation shall include as a minimum general sale terms and conditions provided in 24.302-8(a), and when necessary, special conditions in 24.302-8(b). The plant clearance officer or his representative shall be present to witness bid openings. Within two working DISPOSITION OF PERSONAL PROPERTY IN POSSESSION OF CONTRACTORS days after bid opening, the contractor shall submit to the plant clearance officer two copies of an abstract of all bids, signed by the witnessing Government representative. All awards shall be subject to the approval of the plant clearance officer as indicated in (e) below. (d) Bid Reservations. All invitations for bid shall reserve the right to reject any or all bids and shall require payment of the full purchase price prior to delivery of the property to the purchaser. (e) Approval of Sale. Bids shall be evaluated by the plant clearance officer to establish that the sale price is fair and reasonable in the light of reasonable knowledge or test of the market, due regard being given to current prices for products for which quotations are published and to the circumstances, nature, condition, quantity, and location of the property. Award shall be approved to that responsible bidder whose bid is most advantageous to the Government, price and other factors considered. Award shall not be approved to any bidder who would not be eligible to enter into a sales contract with NASA in accordance with the provisions of the Joint Consolidated List of Debarred, Ineligible and Suspended Contractors (see Part 1, Subpart 6). If it is determined that an award to a contractor on a Joint Consolidated List would be in the best interest of the Government, the plant clearance officer shall request approval from the Director of Procurement, NASA Headquarters through the Director, Property and Supply Division. (f) Award by Contractor. The plant clearance officer shall notify the contractor of the bidder to whom an award shall be made (i) within five working days if Property Disposal Review Board approval is not required, and (ii) within two working days after receipt of the Board decision if Property Disposal Review Board approval is required in accordance with 24.211. The contractor shall make the award, collect the proceeds of sale, and release the property to the purchaser. The contractor shall provide the plant clearance officer with evidence of delivery reflecting actual quantities released to the purchaser. 24.206-3 Negotiated Sales. (See Subchapter H, paragraph 101-45.304-2 of the Federal Property Management Regulation.) 24.206-4 Proceeds of Sale. (a) When payments are due the contractor under the applicable contract, and unless otherwise provided in the contract, the proceeds of any sale, purchase, or retention shall be credited to the Government as part of the settlement agreement, or otherwise credited to the price or cost of the work covered by the contract, or applied in the manner directed by the contracting officer. The plant clearance officer will maintain an open suspense record until he has verified that credit has in fact been applied unless another Government representative has specifically assumed this responsibility. (b) Proceeds from contractor-conducted sales which have not been credited as provided in (a) above shall be collected by the contractor and remitted to the plant clearance officer. (c) All proceeds of sale remitted to the plant clearance officer shall be delivered to the NASA installation financial management or fiscal office. Transmittals shall identify the procurement contract by number and name |