§ 101-43.312 - Use of excess personal property on cost-reimbursement contracts.

(a) Excess personal property may be used to reduce the Government's contract costs and shall be considered for this purpose whenever possible. When preparing contract documents, Federal agencies shall ensure that appropriate provisions are included therein to accommodate the furnishing of excess personal property to cost-reimbursement contractors, as defined in § 101-43.001-6.

(b) Excess personal property may be transferred to a Federal agency for use by a cost-reimbursement contractor as Government-furnished property, provided that the contracting agency determines the transfer will result in a reduction in the cost to the Government or an enhancement of the product or benefit of the contract. All transfer orders submitted to GSA for excess personal property to be furnished to a cost-reimbursement contractor shall list the number and expiration date of the contract, must certify the cost reduction or product enhancement, and shall be executed by an authorized official of the contracting agency. If less than 60 calendar days remains before expiration of the contract, the transfer order will not be approved by GSA unless the contracting agency certifies that the contract will be extended or renewed or other written justification is provided.

(c) Certain Federal agencies have specific statutory authority to vest title to property under certain circumstances, but title to property furnished to a cost-reimbursement contractor normally remains vested in the Government. Contracts shall include adequate safeguards and assurances relative to use, maintenance, consumption, unauthorized use, and redelivery to Government custody of Government-furnished property.

(d) Property furnished to cost-reimbursement contractors is subject to the annual reporting requirements of § 101-43.4701(c).