(2) Subcontracts of any tier if the Contracting Officer having cognizance over the prime contract concerned has:

(i) Determined that the Government will receive adequate consideration, and

(ii) Authorized use without charge by:

(a) Including such authorization in the prime contract;

(b) Approving a subcontract specifically authorizing such use; or

(c) By otherwise approving such use in writing.

(b) A prime contractor may authorize subcontractors to use Government property in the subcontractor's possession, on a no-charge basis, when (1) the price or fee of the prime contract is negotiated with the specific understanding that the use of property by subcontractors on a no-charge basis will be permitted in the performance of specific subcontracts with specific subcontractors and (2) the "Use of Government Property by Subcontractors" clause, prescribed in § 1560.301(b)(5), is included in the prime contract Schedule.

[39 FR 4761, Feb. 7, 1974, as amended at 42 FR 33750, July 1, 1977]

§ 15-60.403 Rent.

(a) The following rental rates shall be used when rent is to be charged or an evaluation factor (equivalent to rent) is computed:

(1) For land and land preparation, buildings, building installations, and land installations, a fair and reasonable rental based on sound commercial practice; and facilities) not covered in paragraph (a)(1) of this section not less than the prevailing commercial rate for like property, if any, or in the absence of such rate, not less than two percent (2%) of the dollar value for electronic test equipment and automotive equipment; and not less than one percent (1%) of the dollar value per month for all other property and equipment.

Subpart 15-60.5 Competition

§ 15-60.500 Scope of subpart.

This subpart sets forth guidance designed to preclude one prospective

It is incumbent upon the Contracting Officer to insure that genuine competition prevails and that adequate consideration flows to the Government whenever and however Government property is to be provided a contractor for contract performance. Willingness and ability to provide all resources necessary for contract performance should be an important factor in evaluating competitive contractors.

§ 15-60.502 Solicitation documents.

Contracting Officers shall make certain that solicitation documents:

(a) Require prospective contractors to specify additional facilities and equipment which must be acquired for contract performance, the estimated cost of individual items, and whether acquisition of such property will be financed by the prospective contractor or whether the Government will be requested to provide the required items.

(b) Explain whether it is the Government's intention to provide property, when it is known prior to solicitation that contract performance will require additional facilities or equipment.

to:

(c) Require prospective contractors

(1) List items (including dollar value) of Government-owned property in their possession which they propose to use in performance of the prospective contract;

(2) Identify the contract or other instrument under which the property is accountable; and

(3) Present written permission to use such property in the performance of the prospective EPA contract from the Government Contracting Officer having cognizance of the property.

(d) Include a statement that the user will assume all costs related to making the property available for use (e.g., transportation, installation, rehabilitation, modification, etc.), unless, the Government is to assume such costs.

(e) Include a statement which explains the consideration to be given Government property during evaluation of bias and proposals. This is to insure that all prospective bidders and offerors understand that Government property will be an important consideration in evaluating their bids and proposals.

§ 15-60.503 Evaluation of bids and proposals.

The following policy shall be considered during evaluation of bids and proposals:

(a) In a competitive procurement, a prospective contractor provided Government property or authorized to use Government-owned property in his possession receives some degree of competitive advantage. When evaluating bids and proposals, such an advantage must be precluded through use of an equalizing factor in establishing the competitive range for negotiation and in arriving at the lowest bid. Any equitable equalizing factor may be used; e.g., rent equivalent, value of property, depreciation, etc.

(b) Government property to be furnished or acquired need not be assigned a weighted factor or criterion for evaluating bids and proposals. However, the evaluation narrative shall explain the importance that was placed upon Government property in rating and ranking bids and proposals.

(c) If a contractor is to be allowed to retain Government property at contract completion, the bid or proposal price shall be increased by an evaluation factor equivalent to:

(1) The cost to be reimbursed by the Government for property acquired at Government expense; and

(2) The current dollar value (cost less depreciation) of Government-furnished property.

Subpart 15-60.6—Administration of Government Property

§ 15-60.600 Scope of subpart.

This subpart sets forth policy and procedures governing administration of Government-furnished property

and property acquired by contractors at Government expense for performance of EPA contracts.

§ 15-60.601 General.

(a) Responsibility within EPA for administering Government property in a contractor's possession rests primarily with EPA Property Administrators and is defined in an "Agreement of Understanding Covering Contract Property Administration" executed by the Directors of the Contracts Management Division, PM-214, Facilities and Support Services Division, PM215, and Financial Management Division, PM-223.

(b) The contractor's responsibility regarding the management and use of Government property is delineated in an EPA publication entitled "Guide for Control of Government Property by Contractors," instructions from EPA Property Administrators, and as specified in the contract.

(c) The Contracting Officer shall furnish the Property Administrator a copy of each contract, contract modification, or other written authorization to a contractor which involves Government property in any manner. Also, the Contracting Officer shall furnish the Property Administrator a copy of all determinations and findings which support a decision to authorize permanent improvements to private property as contemplated in EPA Order 1960.1A.

§ 15-60.602 Property Administrator.

(a) The Property Administrator is the EPA "Accountable Officer" for Government property in a contractor's possession and maintains the official records of such property.

(b) EPA Property Administrators are appointed and assigned by the Director, Facilities and Support Services Division, PM-215.

(c) A Property Administrator shall be designated as Representative of the Contracting Officer for property administration for every cost-reimbursement type contract and for each fixedprice type contract under which Government property is involved. Contracting Officers shall designate the Property Administrator in the con

tract Schedule or by a letter of designation and furnish a copy to the Property Administrator.

(d) As the Representative of the Contracting Officer the Property Administrator performs all transactions and handles all matters concerning Government property in the contractor's possession. However, the Contracting Officer must execute sales contracts and determinations of liability for lost, damaged, or destroyed Government property and will resolve disputes with contractors that cannot be settled by the Property Administrator.

(e) The Property Administrator will review and determine the adequacy of contractor's property policy and procedures concerning:

(1) Receiving and inspection;

(2) Accounting, control, and reports; (3) Utilization, including reporting excess property;

(5) Scrap and salvage of material, parts, etc.; and

(6) Disposal, including preparation for shipment and shipping procedures. § 15-60.603 Insurance.

Consideration will be given to requiring a contractor to procure and maintain insurance against loss of or damage to Government property in his possession whenever less than 75 percent of the total use of such property is for Government work.

§ 15-60.604 Risk of loss or damage liability.

When justified by the circumstances of a particular procurement, the contract may require the contractor to assume greater risks than those enumerated in the applicable "Government Property" clause set forth in FPR Part 1-7. (See § 15-60.102.)

[39 FR 4761, Feb. 7, 1974, as amended at 42 FR 33750, July 1, 1977]

CHAPTERS 16-17 [RESERVED]