[Federal Register Volume 62, Number 105 (Monday, June 2, 1997)]
[Proposed Rules]
[Pages 30186-30219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14250]
[[Page 30185]]
_______________________________________________________________________
Part V
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Part 4, et al.
Federal Acquisition Regulation; Government Property; Proposed Rule
Federal Register / Vol. 62, No. 105 / Monday, June 2, 1997 / Proposed
Rules
[[Page 30186]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 7, 8, 15, 16, 17, 22, 27, 28, 31, 32, 35, 42, 43,
44, 45, 49, 51, 52, and 53 [FAR Case 95-013]
RIN 9000-AH60
Federal Acquisition Regulation; Government Property
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing to amend the Federal
Acquisition Regulation (FAR) to simplify procedures and eliminate
requirements related to the management and disposition of Government
property in the possession of contractors. This regulatory action was
not subject to Office of Management and Budget review under Executive
Order 12866, dated September 30, 1993. This is not a major rule under 5
U.S.C. 804.
DATES: Comments on the proposed rule should be submitted in writing to
the FAR Secretariat at the address shown below on or before August 1,
1997 to be considered in the formulation of the final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVR), 1800 F Street,
NW, Room 4035, Washington, DC 20405.
E-mail comments submitted over Internet should be addressed to:
farcase.95-013@gsa.gov. Please cite FAR case 95-013 in all
correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy (703) 695-1097/1098
(E-Mail: moyac@acq.osd.mil), or Ms. Linda Klein at (202) 501-3775 for
information about content or clarification. For information pertaining
to status or publication schedules, contact the FAR Secretariat, Room
4035, GS Building, Washington, DC 20405 on (202) 501-4755. Please cite
FAR case 95-013.
SUPPLEMENTARY INFORMATION:
A. Background
On September 16, 1994, the Director, Defense Procurement, published
in the Federal Register a notice of public hearings and advance notice
of rulemaking announcing an initiative to rewrite the Government
property rules in Part 45 of the Federal Acquisition Regulation (FAR)
and requesting public comments or suggestions. Approximately 500
comments covering a broad range of property related topics were
received from 22 entities. The Director, Defense Procurement, convened
an interagency team to assess the comments and suggestions, recommend
process improvements, identify overly burdensome Government
requirements, and simplify the Government property rules. The team
included representatives from the Departments of Defense, Energy, and
Transportation, the Environmental Protection Agency, the National
Institutes of Health, and the National Aeronautics and Space
Administration. Additional public participation in the rulemaking
process was obtained through a series of public meetings conducted
between November 1994 and October 1996. Each meeting was publicized in
the Federal Register and public suggestions or comments were invited.
The team's work products also were posted on the Internet
(www.acq.osd.mil/dp/mpi) to provide additional opportunities for
Government and public sector participation.
This proposed rule replaces FAR Part 45 and FAR 52.245 and makes
conforming changes to FAR Parts 4, 7, 8, 15, 16, 17, 22, 27, 28, 31,
32, 35, 42, 43, 44, 49, 51, 52, and 53. The significant changes to the
existing rule are--
1. Contractor requirements. Contractor requirements have been
simplified, removed from FAR Part 45, and consolidated in the
appropriate contract clauses at FAR 52.245.
2. Definitions. Definitions are consolidated in FAR 52.245-3,
Government Property Control (three unique definitions are used in FAR
52.245-5, Rental Charges for Commercial Use), and the number of
definitions is reduced.
The following definitions are not used in the proposed contract
clauses and are deleted:
Accessory item
Auxiliary item
Common item
Contractor acquired property
Contractor inventory
Custodial records
Discrepancies incident to shipment
Facilities
Facility contract
Government production and research property
Individual item record
Line item
Nonseverable and Utility distribution system
Plant clearance
Plant clearance period
Plant equipment
Public body
Reportable property
Reporting Activity
Salvage
Screening completion date
Serviceable or usable property
Stock record
Summary record
Surplus property
Surplus Release Date (SRD)
The terms ``Equipment,'' ``Low value property,'' ``Preventive
maintenance,'' and ``Sensitive property'' are used in the proposed
clauses and consequently defined. Although not used in a contract
clause, a definition of ``Unique Federal property'' is added to clarify
an entry on proposed SF 1422, ``U.S. Government Property in the Custody
of Contractors.'' Other definitions have been modified to improve
clarity and achieve consistency. The definition of ``termination
inventory'' is modified and moved to FAR Part 49.
3. Contract clauses. The number of property clauses is reduced from
19 to 7. Most ``facilities'' clauses are eliminated. Facilities
contracts are contracts for services (see FAR 37.101) and unique FAR
coverage is, generally, unnecessary. FAR Subpart 45.4 of the proposed
rule addresses the limited circumstances under which property
management contracts might be appropriate. The corresponding contract
clause is FAR 52.245-6.
4. Process based property control system. The proposed rule moves
toward a process-based, rather than a requirements-driven, system.
5. Tracking, reporting, and inventorying low value property.
Tracking, reporting, and inventorying property whose acquisition cost
is $1,500 or less is not required until contract completion or
termination. Contractors may report the loss, theft, or destruction of,
or damage to, such property if the property is necessary for continued
contract performance. Industry representatives estimated that 80
percent of all property items have acquisition costs less than $1,500.
Although some industry representatives expressed a preference for a
higher threshold, the Government does not have and was not presented
with any data to support an increased threshold. The collection of
stratified data to permit a reasonable reassessment of the proposed
threshold is one function of
[[Page 30187]]
the property report discussed in paragraph 7.
6. Recordkeeping. The number of records contractors must maintain
is reduced from 19 to 7, and the content of each record has been
simplified and revised to reflect commercial practice more closely.
7. Reports. The proposed rule includes a standard form for
reporting property in a contractor's custody. An agency may require the
use of equivalent forms when, in the agency's opinion, the standard
form does not obtain information of a type or in a format necessary for
the agency's financial or property management obligations.
8. Special test equipment pre-acquisition screening. The
requirement currently in FAR 52.245-18(b) to obtain the contracting
officer's approval prior to fabricating or acquiring special test
equipment is eliminated.
9. Title. The clauses at FAR 52.216-7, 52.232-16, and 52.232-32
have been modified to clarify that the Government obtains title to
items acquired or fabricated by contractors only when the items' costs
are allocable as direct costs to Government contracts.
10. Right to title. The proposed rule contains a ``Special Tooling
and Special Test Equipment--Right to Title'' clause that provides the
Government the right, under fixed-price contracts, to take title to
special tooling or special test equipment items that are not contract
deliverables if the costs of the tooling or test equipment have been
allocated as direct costs to a contract. The clause requires the
Government to exercise that right within specified time periods and
permits equitable price adjustments if a contractor is required to
store property subsequent to the Governments assumption of title. Most
of the recordkeeping requirements in the current ``Special tooling''
clause, FAR 52.245-17, are eliminated.
11. Inventory schedules/Scrap lists. The five inventory schedules
currently identified in FAR 45.606-5 are replaced by one inventory
disposal schedule. The requirement to screen scrap for re-utilization
outside the contracting agency is eliminated. Contractors that have
Government approved scrap procedures may report scrap on scrap lists in
lieu of inventory disposal schedules and dispose of the scrap without
Government approval if the Government fails to provide disposition
instructions within 60 days following receipt of an acceptable scrap
list. Contractors similarly may dispose of scrap reported on an
inventory disposal schedule if the Government fails to provide
disposition instructions within 120 days following receipt of an
acceptable inventory disposal schedule.
12. Screening for disposal. The screening process has been
simplified and screening times shortened. The screening of scrap is not
required. The screening period for standard items is reduced from 90 to
56 days, the limited screening category is eliminated, screening of
special tooling is reduced from 60 to 25 days, the screening of special
test equipment that contains general purpose components is reduced from
90 to 56 days, and the screening period for special test equipment that
does not contain general purpose components is reduced from 60 to 25
days.
13. Rental charges. ``Rental Charges for Commercial Use'' clause,
FAR 52.245-5, replaces the ``Use and Charges'' clause at FAR 52.245-9.
The new clause replicates commercial practice by permitting rental
charges to be based upon appraisals, charges rent only for the time
property is actually used for commercial purposes, and permits
negotiation of alternate means for determining a reasonable rental
charge. These changes should reduce contractor rental costs and
facilitate the use of Government property for commercial purposes.
B. Regulatory Flexibility Act
An Initial Regulatory Flexibility Analysis (IRFA) has been prepared
and demonstrates that the rule will not have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The IFRA is
summarized as follows:
Government contractors have identified the management and
disposal of Government property in their possession as a significant
cost driver. Title II of the Federal Property and Administrative
Services Act of 1949, Public Law 152, as amended requires, in part,
executive agencies to account for Government property, determine
when such property is excess, and to dispose of excess Government
property promptly. Generally, for Government property in the
possession of contractors, the Government relies on the contractors'
property management systems to keep the records and generate the
reports needed to assure the Government's compliance with statutory
requirements. It is estimated that approximately 4,450 small
businesses have Government property in their possession. This
proposed rule substantially decreases the impact of the current FAR
provisions by simplifying recordkeeping requirements, reducing the
number of records to be maintained, reducing the number of reports
to be submitted, eliminating inventory and tracking requirements for
Government property that has an acquisition cost of $1,500 or less,
and replacing five inventory schedules with one inventory disposal
schedule. The small business impact is estimated to be $14,036,842
or $3,154 per small business Government contractor. That amount is
not considered significant because the rule applies only to those
small businesses who request Government property to perform a
contract or create Government property during contract performance
and contract prices compensate such contractors for their Government
property management activities. The records and reports required by
the proposed rule have been reduced to the minimum necessary to
assure compliance with the Government's statutory accountability and
disposal requirements.
The IRFA has been submitted to the Chief Counsel for Advocacy of
the Small Business Administration. A copy of the IRFA may be obtained
from the FAR Secretariat. Comments are invited from small businesses
and other interested parties. Comments from small entities concerning
the affected FAR parts also will be considered in accordance with
Section 610 of the Act. Such comments must be submitted separately and
cite FAR Case 95-013 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (Pub. L. 104-13) applies
because the proposed rule imposes reporting or information collection
requirements, or collections of information from offerors, contractors
or members of the public which require the approval of the Office of
Management and Budget (OMB) under 44 U.S.C. 3501, et seq. A request for
review of the information collection requirements has been submitted to
the Office of Management and Budget under Section 3507(d) of the Act.
Review of the information collection requirements has been
requested as a new clearance, ``FAR Part 45, Government Property,''
which will replace the present FAR requirements currently approved by
the Office of Management and Budget (OMB) under OMB Control Number
9000-0075.
The information collection includes the requirements relating to
FAR Part 45 and 52.245.
a. FAR 52.245-3(f) and Alternate I, paragraph (f) to that clause,
require contractors to maintain records of Government property.
b. FAR 52.245-3(h) requires contractors to conduct property
inventories. The frequency and method used are negotiable.
c. FAR 52.245-1(f)(4) and Alternate I, paragraph (f)(7), FAR
52.245-4(f)(7), and FAR 52.245-6(i)(6) require contractors to notify
the Government promptly following the loss, theft, or destruction of,
or damage to, Government property.
d. FAR 52.245-1(f)(5) and Alternate I, paragraph (f)(8), FAR
52.245-4(f)(8), and
[[Page 30188]]
FAR 52.245-6(i)(7) require contractors to notify the Government upon
contract completion of low value property (<$1,500 per="" item)="" that="" has="" been="" lost,="" stolen,="" damaged,="" or="" destroyed.="" e.="" far="" 52.245-1(j)(3)="" and="" (j)(4),="" far="" 52.245-4(h)(1)(iii)="" and="" (h)(4),="" and="" far="" 52.245-6(j)="" and="" (j)(4)="" require="" contractors="" to="" report="" excess="" property="" on="" inventory="" disposal="" schedules.="" f.="" far="" 52.245-2(c)="" requires="" contractors="" that="" have="" fixed-price="" contracts="" to="" identify="" and="" report="" excess="" special="" tooling="" and="" special="" test="" equipment="" to="" which="" the="" government="" has="" a="" contractual="" right="" to="" take="" title.="" g.="" far="" 52.245-3(g)(1)="" requires="" contractors="" to="" submit="" an="" annual="" report,="" by="" contract,="" of="" government="" property="" in="" their="" possession.="" h.="" far="" 52.245-3(g)(2)="" and="" alternate="" i,="" paragraph="" (g)(1),="" require="" contractors="" to="" report="" the="" receipt="" of="" government="" property="" intended="" for="" other="" persons.="" the="" information="" will="" be="" used="" to="" control="" and="" account="" for="" government-="" owned="" property="" in="" the="" possession="" of="" contractors.="" annual="" reporting="" burden:="" public="" reporting="" burden="" for="" this="" collection="" of="" information="" is="" estimated="" to="" average="" .377="" hours="" per="" response,="" including="" the="" time="" for="" reviewing="" instruction,="" searching="" existing="" data="" sources,="" gathering="" and="" maintaining="" the="" data="" needed,="" and="" completing="" and="" reviewing="" the="" collection="" of="" information.="" the="" annual="" reporting="" burden="" is="" estimated="" as="" follows:="" respondents:="" 6,850;="" responses="" per="" respondent:="" 1,217;="" total="" annual="" responses:="" 8,339,472;="" preparation="" hours="" per="" responses:="" .377;="" and="" total="" response="" burden="" hours:="" 3,146,848.="" d.="" request="" for="" comments="" regarding="" paperwork="" burden="" members="" of="" the="" public="" are="" invited="" to="" comment="" on="" the="" recordkeeping="" and="" information="" collection="" requirements="" and="" estimates="" set="" forth="" above.="" please="" send="" comments="" to:="" office="" of="" information="" and="" regulatory="" affairs,="" office="" of="" management="" and="" budget,="" attention:="" mr.="" peter="" n.="" weiss,="" far="" desk="" officer,="" new="" executive="" office="" building,="" room="" 10102,="" 725="" 17th="" street,="" nw,="" washington,="" dc="" 20503.="" also="" send="" a="" copy="" of="" any="" comments="" to="" the="" far="" secretariat="" at="" the="" address="" shown="" under="" adddresses.="" please="" cite="" far="" case="" 95-013--government="" property,="" in="" all="" correspondence="" related="" to="" this="" estimate.="" list="" of="" subjects="" in="" 48="" cfr="" parts="" 4,="" 7,="" 8,="" 15,="" 16,="" 17,="" 22,="" 27,="" 28,="" 31,="" 32,="" 35,="" 42,="" 43,="" 44,="" 45,="" 49,="" 51,="" 52,="" and="" 53="" government="" procurement.="" dated:="" may="" 27,="" 1997.="" edward="" c.="" loeb,="" director,="" federal="" acquisition="" policy="" division.="" therefore,="" it="" is="" proposed="" that="" 48="" cfr="" parts="" 4,="" 7,="" 8,="" 15,="" 16,="" 17,="" 22,="" 27,="" 28,="" 31,="" 32,="" 35,="" 42,="" 43,="" 44,="" 45,="" 49,="" 51,="" 52,="" and="" 53="" be="" amended="" as="" set="" forth="" below:="" 1.="" the="" authority="" citation="" for="" 48="" cfr="" parts="" 4,="" 7,="" 8,="" 15,="" 16,="" 17,="" 22,="" 27,="" 28,="" 31,="" 32,="" 35,="" 42,="" 43,="" 44,="" 49,="" 51,="" 52,="" and="" 53="" continues="" to="" read="" as="" follows:="" authority:="" 40="" u.s.c.="" 486(c);="" 10="" u.s.c.="" chapter="" 137;="" and="" 42="" u.s.c.="" 2473(c).="" part="" 4--administrative="" matters="" 4.804-4="" [amended]="" 2.="" section="" 4.804-4="" is="" amended="" in="" the="" introductory="" text="" of="" paragraph="" (b)="" by="" removing="" the="" word="" ``facilities''="" and="" inserting="" ``property="" management''="" in="" its="" place.="" part="" 7--acquisition="" planning="" 3.="" section="" 7.105(b)(14)="" is="" revised="" to="" read="" as="" follows:="" 7.105="" contents="" of="" written="" acquisition="" plans.="" *="" *="" *="" *="" *="" (b)="" *="" *="" *="" (14)="" government="" furnished="" property.="" identify="" any="" property="" to="" be="" furnished="" to="" contractors="" and="" discuss="" any="" associated="" considerations,="" such="" as="" the="" property's="" availability="" and="" compliance="" with="" the="" requirements="" of="" 45.201.="" *="" *="" *="" *="" *="" 7.501="" [amended]="" 4.="" section="" 7.501="" is="" amended="" in="" the="" second="" sentence="" of="" paragraph="" (b)="" by="" removing="" ``facilities="" operations="" and="" maintenance''="" and="" inserting="" ``property="" management''="" in="" its="" place.="" part="" 8--required="" sources="" of="" supplies="" and="" services="" 5.="" section="" 8.101="" is="" revised="" to="" read="" as="" follows:="" 8.101="" definition.="" excess="" personal="" property="" means="" any="" personal="" property="" (see="" 52.245-3)="" under="" the="" control="" of="" a="" federal="" agency="" that="" the="" agency="" head="" or="" a="" designee="" determines="" is="" not="" required="" for="" its="" needs="" or="" for="" the="" discharge="" of="" its="" responsibilities.="" part="" 15--contracting="" by="" negotiation="" 6.="" section="" 15.608="" is="" amended="" by="" adding="" paragraph="" (a)(4)="" to="" read="" as="" follows:="" 15.608="" proposed="" evaluation.="" (a)="" *="" *="" *="" (4)="" government="" property="" adjustment.="" offerors="" who="" will="" use="" government="" property="" to="" perform="" a="" contract="" have="" a="" price="" advantage="" relative="" to="" competitors="" who="" will="" use="" their="" own="" property="" or="" will="" acquire="" or="" fabricate="" property="" to="" perform="" that="" contract.="" when="" evaluating="" offers,="" that="" advantage="" must="" be="" eliminated="" to="" the="" extent="" practicable.="" (i)="" adjust="" offers="" by="" applying="" a="" rental="" equivalent="" evaluation="" factor.="" the="" factor="" should="" be="" appropriate="" for="" the="" type="" and="" amount="" of="" property="" to="" be="" furnished="" to="" the="" contractor.="" to="" the="" extent="" practicable,="" use="" the="" rental="" guidelines="" in="" 52.245-5,="" ``rental="" charges="" for="" commercial="" use''="" clause="" when="" determining="" the="" evaluation="" factor.="" (ii)="" it="" is="" not="" necessary="" to="" calculate="" a="" government="" property="" adjustment="" when--="" (a)="" the="" solicitation="" requires="" the="" offerors="" to="" use="" specific="" government="" furnished="" property="" items="" during="" contract="" performance;="" (b)="" it="" is="" apparent="" that="" the="" difference="" between="" the="" offer(s)="" most="" advantageous="" to="" the="" government="" and="" the="" competing="" offer(s)="" is="" (are)="" so="" great="" that="" a="" rental="" adjustment="" will="" not="" affect="" source="" selection;="" or="" (c)="" the="" government="" property="" is="" offered="" on="" an="" ``as="" is''="" basis="" and="" the="" contract="" stipulates="" that="" the="" contractor's="" costs="" to="" transport="" the="" property="" and="" make="" it="" suitable="" for="" the="" contractor's="" intended="" use="" do="" not="" increase="" the="" contract="" price="" or="" fee.="" *="" *="" *="" *="" *="" part="" 16--types="" of="" contracts="" 16.307="" [amended]="" 7.="" section="" 16.307="" is="" amended--="" by="" adding="" a="" note="" at="" the="" end="" of="" the="" section="" to="" read="" ``note="" to="" section="" 16.307:="" this="" section="" does="" not="" apply="" to="" property="" management="" contracts="" (see="" 45.401-3).'';="" in="" the="" first="" sentence="" of="" paragraph="" (a)(1)="" by="" removing="" the="" parenthetical="" ``(other="" than="" a="" facilities="" contract)'';="" in="" paragraph="" (b)="" by="" removing="" the="" parenthetical="" ``(other="" than="" a="" facilities="" contract="" or="" a="" construction="" contract)'';="" in="" paragraph="" (d)="" by="" removing="" the="" parenthetical="" ``(other="" than="" a="" facilities="" contract)'';="" in="" paragraph="" (e)(1)="" by="" removing="" ``or="" a="" facilities="" contract''.="" in="" paragraph="" (f)(1)="" by="" removing="" the="" parenthetical="" ``(other="" than="" a="" facilities="" contract)'';="" by="" removing="" paragraph="" (g)="" and="" redesignating="" paragraph="" (i)="" as="" (g)="" and="" amending="" it="" by="" removing="" the="" last="" sentence;="" and="" by="" removing="" paragraph="" (h).="" [[page="" 30189]]="" part="" 17--special="" contracting="" methods="" 8.="" section="" 17.603="" is="" amended="" by="" revising="" paragraph="" (a)(5)="" to="" read="" as="" follows:="" 17.603="" limitations.="" (a)="" *="" *="" *="" (5)="" functions="" that="" can="" more="" properly="" be="" accomplished="" in="" accordance="" with="" subpart="" 45.2,="" furnishing="" government="" property.="" *="" *="" *="" *="" *="" part="" 22--application="" of="" labor="" laws="" to="" government="" acquisitions="" 9.="" section="" 22.407="" is="" amended="" by="" revising="" paragraph="" (d)="" to="" read="" as="" follows:="" 22.407="" contract="" clauses.="" *="" *="" *="" *="" *="" (d)="" the="" contracting="" officer="" shall="" insert="" the="" clause="" at="" 52.222-17,="" labor="" standards="" for="" construction="" work--facilities="" contracts,="" in="" solicitations="" and="" contracts="" for="" property="" management="" contracts="" (see="" subpart="" 45.4)="" that="" may="" require="" covered="" construction="" work="" (see="" 22.402(b))="" to="" be="" performed="" in="" the="" united="" states.="" part="" 27--patents,="" data,="" and="" copyrights="" 27.409="" [amended]="" 10.="" section="" 27.409="" is="" amended="" in="" the="" first="" sentence="" of="" paragraph="" (e)="" by="" removing="" the="" word="" ``facilities''="" and="" inserting="" ``property''="" in="" its="" place.="" part="" 28--bonds="" and="" insurance="" 11.="" section="" 28.303="" is="" revised="" to="" read="" as="" follows:="" 28.303="" insurance="" against="" loss="" of="" or="" damage="" to="" government="" property.="" when="" the="" government="" requires="" or="" approves="" insurance="" to="" cover="" loss,="" theft,="" or="" destruction="" of="" or="" damage="" to="" government="" property="" (see="" 45.104,="" risk="" of="" loss),="" it="" may="" be="" provided="" by="" specific="" insurance="" policies="" or="" by="" inclusion="" of="" the="" risks="" in="" the="" contractor's="" existing="" policies.="" the="" policies="" shall="" disclose="" the="" government's="" interest="" in="" the="" property.="" part="" 31--contract="" cost="" principles="" and="" procedures="" 31.106="" [removed="" and="" reserved]="" 12.="" section="" 31.106="" is="" removed="" and="" reserved.="" 31.205-40="" [amended]="" 13.="" section="" 31.205-40="" is="" amended="" in="" paragraph="" (a)="" by="" removing="" the="" citation="" ``45.101''="" and="" inserting="" ``52.245-3''="" in="" its="" place.="" part="" 32--contract="" financing="" 32.403="" [amended]="" 14.="" section="" 32.403="" is="" amended="" by="" removing="" and="" reserving="" paragraph="" (c).="" 32.407="" [amended]="" 15.="" section="" 32.407="" is="" amended="" by="" removing="" and="" reserving="" paragraph="" (c).="" 32.503-15="" [removed="" and="" reserved]="" 16.="" section="" 32.503-15="" is="" removed="" and="" reserved.="" 17.="" section="" 32.705-2="" is="" amended="" by="" revising="" paragraph="" (a);="" removing="" paragraph="" (b);="" and="" redesignating="" paragraph="" (c)="" as="" (b).="" the="" revised="" text="" reads="" as="" follows:="" 32.705-2="" clauses="" for="" limitation="" of="" cost="" or="" funds.="" (a)="" the="" contracting="" officer="" shall="" insert="" the="" clause="" at="" 52.232-20,="" limitation="" of="" cost,="" in="" solicitations="" and="" contracts="" (except="" property="" management="" contracts)="" if="" a="" fully="" funded="" cost-reimbursement="" contract="" is="" contemplated="" whether="" or="" not="" the="" contract="" provides="" for="" payment="" of="" a="" fee.="" *="" *="" *="" *="" *="" part="" 35--research="" and="" development="" contracting="" 18.="" section="" 35.014="" is="" revised="" to="" read="" as="" follows:="" 35.014="" title="" to="" tangible="" personal="" property.="" use="" the="" clause="" at="" 52.245-4="" with="" its="" alternate="" i="" when="" contracting="" for="" basic="" or="" applied="" scientific="" research="" on="" a="" cost-reimbursement="" basis="" and="" it="" is="" in="" the="" government's="" interest="" to="" provide="" nonprofit="" organizations="" whose="" primary="" purpose="" is="" the="" conduct="" of="" scientific="" research="" or="" nonprofit="" institutions="" of="" higher="" education="" title="" to="" equipment="" or="" other="" tangible="" personal="" property="" purchased="" for="" contract="" performance="" that="" has="" an="" acquisition="" cost="" of="" less="" than="" $5,000="" per="" property="" item.="" part="" 42--contract="" administration="" 19.="" section="" 42.302="" is="" amended="" by="" revising="" paragraphs="" (a)(27),="" (a)(28),="" and="" (a)(30)="" to="" read="" as="" follows:="" 42.302="" contract="" administration="" functions.="" (a)="" *="" *="" *="" (27)="" determine="" reasonable="" rentals="" for="" noninterference="" use="" of="" government="" property="" for="" commercial="" purposes="" (see="" 52.245-1,="" 52.245-4,="" 52.245-5,="" and="" 52.245-6).="" (28)="" perform="" necessary="" screening,="" redistribution,="" and="" disposal="" of="" government="" property.="" *="" *="" *="" *="" *="" (30)="" for="" property="" management="" contracts--="" (i)="" evaluate="" contractor="" requests="" for="" repair,="" or="" replacement="" of="" or="" changes="" to="" existing="" property="" and="" provide="" appropriate="" recommendations="" to="" the="" contracting="" officer;="" and="" (ii)="" ensure="" payment="" by="" the="" contractor="" of="" any="" rental="" due.="" *="" *="" *="" *="" *="" part="" 43--contract="" modifications="" 43.205="" [amended]="" 20.="" section="" 43.205="" is="" amended="" by="" removing="" paragraph="" (b)(5)="" and="" redesignating="" paragraph="" (b)(6)="" as="" (b)(5).="" part="" 44--subcontracting="" policies="" and="" procedures="" 44.101="" [amended]="" 21.="" section="" 44.101="" is="" amended="" by="" removing="" the="" definition="" ``facilities''.="" 22.="" section="" 44.201-2="" is="" amended="" by="" revising="" paragraph="" (a)="" to="" read="" as="" follows:="" 44.201-2="" cost-reimbursement="" and="" letter="" prime="" contracts.="" (a)="" consent="" is="" required="" under="" cost-reimbursement="" and="" letter="" prime="" contracts="" for="" subcontracts="" that="" have="" experimental,="" developmental,="" or="" research="" work="" as="" one="" of="" their="" purposes.="" *="" *="" *="" *="" *="" 23.="" section="" 44.202-2="" is="" amended="" by="" revising="" paragraphs="" (a)(2)="" and="" (a)(10)="" to="" read="" as="" follows:="" 44.202-2="" considerations.="" (a)="" *="" *="" *="" (2)="" is="" the="" subcontract="" for="" property="" that="" is="" available="" from="" government="" sources="" (see="" 45.201)?="" *="" *="" *="" *="" *="" (10)="" has="" adequate="" consideration="" been="" obtained="" for="" any="" proposed="" subcontract="" that="" will="" involve="" the="" use="" of="" government="" furnished="" property?="" *="" *="" *="" *="" *="" 24.="" part="" 45="" is="" revised="" to="" read="" as="" follows:="" part="" 45--government="" property="" subpart="" 45.0--scope="" and="" definitions="" sec.="" 45.000="" scope="" of="" part.="" 45.001="" definitions.="" subpart="" 45.1--general="" 45.101="" policy.="" 45.102="" contract="" clauses.="" 45.103="" contractor="" acquired="" or="" fabricated="" property.="" [[page="" 30190]]="" 45.104="" risk="" of="" loss.="" 45.105="" right="" to="" title,="" special="" tooling="" and="" special="" test="" equipment.="" subpart="" 45.2--furnishing="" government="" property="" 45.201="" furnishing="" property="" for="" performance="" of="" a="" government="" contract.="" 45.201-1="" criteria.="" 45.201-2="" additional="" restrictions.="" 45.201-3="" documentation="" requirements.="" 45.201-4="" competitive="" advantage.="" 45.201-5="" solicitation="" requirements.="" 45.201-6="" postaward="" requests="" for="" government="" property.="" 45.201-7="" repair="" or="" replacement="" of="" government="" property.="" 45.202="" property="" furnished="" for="" commercial="" purposes.="" subpart="" 45.3--government="" property="" management="" 45.301="" property="" control="" systems.="" 45.301-1="" preaward="" considerations.="" 45.301-2="" reviews="" and="" approvals.="" 45.302="" government="" property="" records.="" 45.303="" property="" accountability.="" 45.303-1="" accountability.="" 45.303-2="" transferring="" accountability.="" 45.304="" property="" disposal.="" 45.304-1="" government="" furnished="" property="" to="" be="" returned="" to="" the="" contracting="" activity.="" 45.304-2="" disposal="" priorities.="" 45.304-3="" inventory="" disposal="" schedules.="" 45.304-4="" scrap="" lists.="" 45.304-5="" screening.="" 45.304-6="" standard="" screening.="" 45.304-7="" special="" screening="" requirements.="" 45.304-8="" waiver="" of="" screening="" requirements.="" 45.304-9="" interagency="" property="" transfer="" costs.="" 45.304-10="" sale="" of="" surplus="" government="" property.="" 45.304-11="" proceeds="" from="" sales.="" 45.304-12="" u.s.="" government="" property="" in="" foreign="" countries.="" 45.304-13="" destruction="" or="" abandonment.="" subpart="" 45.4--property="" management="" contracts="" 45.401="" contracting="" for="" property="" management.="" 45.401-1="" general.="" 45.401-2="" contracts="" to="" preserve="" or="" maintain="" an="" essential="" industrial="" capability.="" 45.401-3="" consolidating="" property="" management.="" authority:="" 40="" u.s.c.="" 486(c);="" 10="" u.s.c.="" chapter="" 137;="" and="" 42="" u.s.c.="" 2473(c).="" subpart="" 45.0--scope="" and="" definitions="" 45.000="" scope="" of="" part.="" this="" part="" prescribes="" policies="" for="" authorizing="" contractors="" to="" acquire="" property="" for="" the="" government,="" furnishing="" government="" property="" to="" contractors,="" contractors'="" use="" and="" management="" of="" government="" property,="" and,="" except="" for="" real="" property,="" the="" disposal="" of="" government="" property.="" it="" does="" not="" apply="" to--="" (a)="" property="" leased="" under="" the="" provisions="" of="" 10="" u.s.c.="" 2667,="" ``leases:="" nonexcess="" property'';="" or="" (b)="" property="" to="" which="" the="" government="" has="" obtained="" title,="" a="" lien,="" or="" other="" security="" interest="" solely="" as="" a="" result="" of="" financing="" arrangements="" under="" fixed-price="" contracts.="" 45.001="" definitions.="" as="" used="" in="" this="" part--="" contractor's="" managerial="" personnel="" means="" the="" contractor's="" directors,="" officers,="" and="" any="" of="" the="" contractor's="" managers,="" superintendents,="" or="" equivalent="" representatives="" who="" have="" supervision="" or="" direction="" of="" all="" or="" substantially="" all="" of="" the="" contractor's--="" (1)="" business;="" or="" (2)="" operations="" at="" a="" site="" connected="" with="" performance="" of="" this="" contract.="" equipment="" means="" items="" whose="" use="" is="" not="" limited="" to,="" or="" with="" only="" minor="" modification="" would="" not="" be="" limited="" to,="" the="" development,="" production,="" or="" maintenance="" of="" a="" particular="" item="" or="" the="" performance="" of="" a="" particular="" service.="" the="" term="" includes,="" but="" is="" not="" limited="" to,="" automated="" data="" processing="" equipment,="" office="" equipment,="" construction="" equipment,="" hand="" tools,="" machine="" tools="" (other="" than="" special="" tooling),="" test="" equipment="" (other="" than="" special="" test="" equipment="" or="" components="" thereof),="" furniture,="" and="" vehicles.="" government="" property="" means="" property="" the="" government="" owns="" or="" leases.="" government--furnished="" property="" means="" property="" provided="" by="" the="" government="" to="" a="" contractor="" for="" performance="" of="" a="" contract.="" low="" value="" property="" means="" equipment,="" special="" tooling,="" or="" special="" test="" equipment="" that="" has="" an="" acquisition="" cost="" of="" $1500="" or="" less="" and="" is="" not="" sensitive="" property.="" material="" means="" property="" to="" be="" consumed="" or="" expended="" to="" perform="" a="" service="" or="" produce="" a="" deliverable="" end="" item="" and="" property="" incorporated="" into="" or="" attached="" to="" an="" end="" item.="" the="" term="" includes="" assemblies,="" components,="" parts,="" raw="" and="" processed="" materials,="" and="" supplies="" that="" may="" be="" consumed="" in="" normal="" use="" in="" performing="" a="" contract.="" it="" does="" not="" include="" equipment,="" real="" property,="" special="" test="" equipment,="" special="" tooling,="" or="" unique="" federal="" property.="" nonprofit="" organization="" means="" a="" business="" entity="" organized="" and="" operated="" exclusively="" for="" charitable,="" scientific,="" or="" educational="" purposes,="" the="" net="" earnings="" of="" which="" do="" not="" inure="" to="" the="" benefit="" of="" any="" private="" shareholder="" or="" individual,="" that="" is="" exempt="" from="" federal="" income="" taxation="" under="" section="" 501="" of="" the="" internal="" revenue="" code="" and="" does="" not="" conduct="" a="" substantial="" portion="" of="" its="" activities="" carrying="" on="" propaganda="" or="" otherwise="" attempting="" to="" influence="" legislation="" or="" participating="" in="" any="" political="" campaign="" on="" behalf="" of="" any="" candidate="" for="" public="" office.="" personal="" property="" means="" property="" of="" any="" kind="" or="" interest="" in="" it="" except="" real="" property,="" battleships,="" cruisers,="" aircraft="" carriers,="" destroyers,="" submarines,="" and="" records="" of="" the="" federal="" government.="" plant="" clearance="" officer="" means="" a="" person="" appointed="" to="" perform="" plant="" clearance="" functions.="" precious="" metals="" means="" silver,="" gold,="" platinum,="" palladium,="" iridium,="" osmium,="" rhodium,="" and="" ruthenium.="" preventive="" maintenance="" means="" regularly="" scheduled="" maintenance="" performed="" to="" sustain="" suitability="" for="" intended="" use="" and="" detect="" and="" correct="" minor="" deficiencies="" before="" they="" result="" in="" serious="" consequences.="" property="" means="" real="" and="" personal="" property.="" property="" administrator="" means="" a="" person="" appointed="" to="" perform="" government="" property="" administration.="" real="" property="" means="" land="" and="" rights="" in="" land,="" ground="" improvements,="" utility="" distribution="" systems,="" and="" buildings="" and="" other="" structures.="" it="" does="" not="" include="" foundations="" and="" other="" work="" necessary="" for="" installing="" special="" tooling,="" special="" test="" equipment,="" or="" equipment.="" rental="" period="" means="" the="" calendar="" period="" during="" which="" government="" property="" is="" made="" available="" for="" commercial="" purposes.="" rental="" time="" means="" the="" number="" of="" hours,="" to="" the="" nearest="" whole="" hour,="" rented="" property="" is="" actually="" used="" for="" commercial="" purposes.="" it="" includes="" time="" to="" set="" up="" the="" property="" for="" such="" purposes,="" perform="" required="" maintenance,="" and="" restore="" the="" property="" to="" its="" condition="" prior="" to="" rental="" (less="" normal="" wear="" and="" tear).="" scrap="" means="" personal="" property="" that="" has="" no="" value="" except="" its="" basic="" metallic,="" mineral,="" or="" organic="" content.="" sensitive="" property="" means="" property="" potentially="" dangerous="" to="" the="" public="" safety="" or="" security="" if="" stolen,="" lost,="" or="" misplaced,="" or="" that="" must="" be="" subject="" to="" exceptional="" physical="" security,="" protection,="" control,="" and="" accountability="" such="" as="" classified="" property,="" weapons,="" ammunition,="" explosives,="" controlled="" substances,="" radioactive="" materials,="" hazardous="" materials="" or="" wastes,="" or="" precious="" metals.="" special="" test="" equipment="" means="" a="" test="" unit="" or="" units="" designed,="" fabricated,="" or="" modified="" to="" accomplish="" special="" purpose="" testing,="" groupings="" of="" such="" items,="" general="" purpose="" items,="" or="" any="" combination="" thereof,="" that="" are="" interconnected="" and="" interdependent="" so="" as="" to="" become="" a="" new="" functional="" entity.="" special="" tooling="" means="" items,="" such="" as="" jigs,="" dies,="" fixtures,="" molds,="" patterns,="" taps,="" gauges,="" or="" other="" equipment="" and="" manufacturing="" aids,="" which="" are="" of="" such="" [[page="" 30191]]="" a="" specialized="" nature="" that="" without="" substantial="" modification="" or="" alteration="" their="" use="" is="" limited="" to="" the="" development,="" production,="" repair,="" or="" maintenance="" of="" particular="" supplies="" or="" components="" thereof,="" or="" to="" the="" performance="" of="" particular="" services.="" unique="" federal="" property="" means="" government-owned="" personal="" property,="" or="" components="" thereof,="" that="" is="" specially="" designed="" to="" perform="" or="" support="" the="" mission="" of="" one="" or="" more="" federal="" agencies="" and="" is="" not="" available="" to="" the="" public.="" work="" in="" process="" means="" bench="" stock="" materials,="" complete="" or="" incomplete="" fabricated="" parts,="" subassemblies,="" assemblies,="" and="" similar="" items="" that="" are="" created="" during="" production="" of="" deliverable="" end="" items="" or="" are="" required="" to="" construct="" special="" tooling="" or="" special="" test="" equipment="" needed="" to="" produce="" deliverable="" end="" items.="" subpart="" 45.1--general="" 45.101="" policy.="" (a)="" agencies="" shall="" not="" direct,="" require,="" or="" specify="" for="" contract="" performance="" the="" use="" of="" specific="" commercially="" available="" items="" or="" software="" that="" will="" become="" government="" property="" under="" a="" contract="" unless="" the="" contract's="" stated="" purpose="" is="" the="" acquisition="" of="" such="" items.="" (b)="" agencies="" shall="" not="" authorize="" contractors="" to="" acquire="" for="" the="" government--="" (1)="" property="" not="" required="" for="" performance="" of="" a="" contract="" or="" subcontract="" thereunder;="" (2)="" real="" property,="" alterations="" thereof,="" or="" improvements="" thereto,="" unless="" the="" contract's="" purpose="" is="" the="" maintenance="" of="" an="" essential="" industry="" capability="" or="" the="" performance="" of="" alterations="" or="" improvements="" to="" real="" property="" that="" are="" necessary="" to="" maintain="" an="" essential="" industrial="" capability;="" (3)="" commercially="" available="" items,="" equipment,="" or="" computer="" software="" unless="" the="" contract's="" stated="" purpose="" is="" the="" acquisition="" of="" such="" items="" (see="" 45.101(c)="" for="" nonprofit="" organizations).="" (c)="" under="" contracts="" for="" basic="" or="" applied="" scientific="" research,="" contracting="" officers="" may="" authorize="" nonprofit="" organizations="" whose="" primary="" purpose="" is="" the="" conduct="" of="" scientific="" research="" or="" nonprofit="" institutions="" of="" higher="" education="" to="" acquire="" tangible="" personal="" property="" for="" the="" government="" including="" commercially="" available="" items="" or="" equipment.="" (d)="" except="" as="" provided="" in="" subpart="" 45.2,="" agencies="" shall="" not="" furnish="" government="" property="" to="" contractors.="" (e)="" under="" fixed-price="" or="" labor-hour="" contracts,="" agencies="" shall="" not="" exercise="" the="" government's="" right="" to="" take="" title="" to="" special="" tooling="" or="" special="" test="" equipment="" unless="" the="" tooling="" or="" test="" equipment="" will="" be="" needed="" for="" follow-on="" competitive="" procurements,="" component="" break-out,="" or="" mobilization.="" 45.102="" contract="" clauses.="" (a)(1)="" use="" the="" clause="" at="" 52.245-1,="" government="" furnished="" property="" (fixed-price="" and="" labor-hour="" contracts),="" in="" solicitations="" and="" contracts="" for="" supplies,="" services,="" or="" research="" and="" development="" to="" be="" awarded="" on="" a="" fixed-price="" competitive="" basis="" or="" competitive="" labor-hour="" contracts.="" do="" not="" use="" the="" clause="" in="" contracts="" for="" commercial="" items="" or="" when="" government="" property="" will="" not="" be="" furnished="" for="" contract="" performance.="" (2)="" use="" the="" clause="" with="" its="" alternate="" i="" when="" the="" contract="" price="" will="" not="" be="" based="" upon="" adequate="" price="" competition,="" the="" price="" is="" set="" by="" law="" or="" regulation,="" or,="" when="" it="" is="" in="" the="" government's="" interests="" to="" do="" so,="" in="" fixed-price="" contracts="" for="" services="" to="" be="" performed="" primarily="" on="" real="" property="" owned="" or="" leased="" by="" the="" government="" (see="" 45.104(b)).="" (b)="" use="" the="" clause="" at="" 52.245-2,="" special="" tooling="" and="" special="" test="" equipment--right="" to="" title="" (fixed-price="" contracts),="" in="" fixed-price="" solicitations="" and="" contracts="" (other="" than="" sealed="" bids)="" for="" supplies,="" services,="" or="" research="" and="" development="" where="" the="" effort="" to="" be="" performed="" will="" require="" the="" contractor="" to="" acquire="" or="" fabricate="" special="" tooling="" or="" special="" test="" equipment.="" (c)="" use="" the="" clause="" at="" 52.245-3,="" government="" property="" control,="" in="" all="" solicitations="" and="" contracts="" that="" include="" the="" clause="" at="" 52.245-1,="" 52.245-4,="" or="" 52.245-6.="" use="" the="" clause="" at="" 52.245-3="" with="" its="" alternate="" i="" when="" the="" government="" will="" maintain="" the="" government's="" official="" property="" records="" (see="" 45.302(b)).="" (d)="" use="" the="" clause="" at="" 52.245-4,="" government="" property="" (cost-="" reimbursement="" and="" time="" and="" material="" contracts),="" in="" all="" cost-="" reimbursement="" or="" time-and-material="" contracts.="" use="" the="" clause="" with="" its="" alternate="" i="" in="" contracts="" for="" basic="" or="" applied="" scientific="" research="" to="" be="" conducted="" by="" nonprofit="" organizations="" whose="" primary="" purpose="" is="" the="" conduct="" of="" scientific="" research="" or="" nonprofit="" institutions="" of="" higher="" education="" (see="" 35.014).="" (e)="" use="" the="" clause="" at="" 52.245-5,="" rental="" charges="" for="" commercial="" use,="" in="" all="" solicitations="" and="" contracts="" that="" include="" the="" clauses="" at="" 52.245-="" 1,="" 52.245-4,="" or="" 52.245-6,="" except="" when="" contracting="" under="" the="" armament="" retooling="" and="" manufacturing="" support="" act="" of="" 1992.="" the="" clause="" is="" optional="" for="" such="" contracts.="" (f)="" the="" clause="" at="" 52.245-6,="" government="" property--property="" management="" contracts,="" may="" be="" used="" in="" lieu="" of="" the="" clauses="" at="" 52.245-1="" and="" 52.245-4="" when="" a="" contractor="" will="" be="" performing="" multiple="" government="" contracts="" at="" a="" single="" location,="" and="" it="" is="" in="" the="" government's="" interests="" to="" consolidate="" under="" one="" contract="" the="" management="" of="" and="" accountability="" for="" the="" government="" property="" at="" that="" location.="" (g)="" use="" the="" clause="" at="" 52.245-7,="" liability="" for="" government="" property--="" demolition="" services="" contracts,="" in="" addition="" to="" the="" clauses="" prescribed="" at="" 37.304="" in="" solicitations="" and="" contracts="" for="" dismantling,="" demolition,="" or="" removal="" of="" improvements.="" (h)="" a="" government="" property="" clause="" is="" not="" required="" in="" purchase="" orders="" for="" property="" repair="" when="" the="" total="" acquisition="" cost="" of="" the="" items="" to="" be="" repaired="" is="" less="" than="" $100,000="" and="" such="" items="" are="" the="" only="" government="" property="" furnished="" under="" the="" purchase="" order.="" (i)="" when="" contracting="" for="" services="" to="" be="" performed="" entirely="" on="" property="" owned="" or="" leased="" by="" the="" government="" and="" the="" contracting="" officer="" determines="" in="" writing="" that="" it="" is="" in="" the="" government's="" interests="" to="" have="" a="" contractor="" record,="" inventory,="" and="" immediately="" report="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" regardless="" of="" the="" property's="" value,="" the="" clauses="" at="" 52.245-1,="" 52.245-1="" with="" its="" alternate="" i,="" 52.245-3,="" 52.245-4,="" and="" 52.245-6="" may="" be="" modified="" to="" delete="" references="" to="" low="" value="" property.="" 45.103="" contractor="" acquired="" or="" fabricated="" property.="" (a)="" as="" defined="" in="" 52.245-3,="" the="" term="" ``equipment''="" describes="" items="" whose="" use="" is="" not="" limited="" to="" the="" development,="" production,="" or="" maintenance="" of="" a="" particular="" item="" or="" the="" performance="" of="" a="" particular="" service.="" a="" contractor's="" contention="" that="" such="" equipment="" was="" acquired="" to="" perform="" a="" specific="" contract="" and="" is="" not="" needed="" for="" any="" other="" purpose="" does="" not="" alter="" the="" fact="" that="" such="" items="" are="" general="" purpose="" items="" that="" might="" not="" qualify="" for="" treatment="" as="" direct="" costs="" under="" the="" contractor's="" cost="" accounting="" practices="" and="" far="" 31.202.="" (b)="" for="" purposes="" of="" the="" clause="" at="" 52.245-3,="" government="" property="" control,="" property="" acquired="" or="" fabricated="" by="" a="" contractor="" for="" performance="" of="" a="" government="" contract="" becomes="" government="" property="" under="" a="" fixed-price="" contract="" or="" labor-hour="" contract="" when="" the="" government="" accepts="" deliverable="" property="" or,="" as="" provided="" in="" the="" clause="" at="" 52.245-2,="" special="" tooling="" and="" special="" test="" equipment--right="" to="" title="" (fixed-price="" contracts),="" takes="" title="" to="" property="" not="" scheduled="" for="" delivery.="" under="" cost-reimbursement="" or="" time-and-material="" contracts,="" property="" acquired="" or="" fabricated="" by="" a="" contractor="" for="" [[page="" 30192]]="" performance="" of="" its="" contract="" becomes="" government="" property="" at="" the="" times="" specified="" in="" the="" clause="" at="" 52.216-7,="" allowable="" cost="" and="" payment.="" alternate="" i="" to="" the="" clause="" at="" 52.245-4,="" government="" property="" (cost-="" reimbursement="" and="" time-and-material="" contracts),="" and="" 35.014="" describe="" the="" circumstances="" under="" which="" title="" to="" equipment="" or="" other="" tangible="" personal="" property="" may="" be="" vested="" in="" nonprofit="" organizations="" whose="" primary="" purpose="" is="" the="" conduct="" of="" scientific="" research="" or="" nonprofit="" institutions="" of="" higher="" education="" when="" such="" organizations="" are="" performing="" government="" contracts="" for="" basic="" or="" applied="" scientific="" research.="" (c)="" property="" to="" which="" the="" government="" obtains="" or="" takes="" title="" at="" a="" contractor="" or="" subcontractor="" managed="" facility="" is="" considered="" property="" in="" the="" contractor's="" possession="" until="" the="" property="" is="" placed="" on="" board="" a="" carrier's="" conveyance="" (f.o.b.="" origin)="" or="" delivered="" at="" the="" specified="" f.o.b.="" destination="" point.="" the="" contractor="" is="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" that="" property="" in="" accordance="" with="" the="" clause="" at="" 52.245-1="" or="" 52.245-4.="" property="" administrators="" should="" verify="" that="" the="" contractor="" enters="" such="" property="" into="" its="" government="" property="" control="" system="" if="" required="" by="" the="" contract.="" (d)="" when="" property="" accepted="" by="" the="" government="" or="" property="" to="" which="" the="" government="" has="" taken="" title="" under="" the="" clause="" at="" 52.245-2="" will="" be="" furnished="" to="" the="" contractor="" for="" performance="" of="" the="" contract="" under="" which="" acceptance="" occurred="" or="" title="" was="" obtained,="" or="" will="" be="" furnished="" to="" a="" contractor="" for="" performance="" of="" another="" government="" contract,="" the="" receiving="" contract="" must="" be="" modified="" to="" identify="" the="" property="" as="" government="" furnished="" property.="" if="" the="" receiving="" contract="" does="" not="" contain="" the="" clause="" at="" 52.245-1="" or="" 52.245-4,="" the="" modification="" should="" add="" the="" appropriate="" property="" clause,="" other="" clauses="" prescribed="" for="" use="" with="" that="" clause,="" and,="" notwithstanding="" any="" other="" provision="" of="" the="" receiving="" contract,="" specify="" that="" the="" property="" is="" furnished="" in="" accordance="" with="" the="" terms="" of="" the="" clauses="" added.="" 45.104="" risk="" of="" loss.="" (a)="" the="" contractor="" is="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" under="" competitively="" awarded="" labor-hour="" contracts="" and="" competitively="" awarded="" fixed-price="" contracts.="" under="" other="" contract="" types,="" the="" contractor="" is="" liable="" for="" such="" loss,="" theft,="" destruction,="" or="" damage="" until="" it="" establishes="" a="" government="" property="" control="" system="" and="" the="" system="" is="" approved="" by="" a="" government="" property="" administrator.="" except="" as="" provided="" in="" paragraphs="" (f)(3)="" and="" (f)(4)="" of="" alternate="" i="" to="" 52.245-1,="" paragraphs="" (f)(2)="" and="" (f)(4)="" of="" the="" clause="" at="" 52.245-4,="" or="" paragraph="" (i)(2)="" or="" (i)(3)="" of="" the="" clause="" at="" 52.245-6,="" the="" government="" assumes="" such="" risks="" during="" any="" period="" in="" which="" the="" contractor="" maintains="" an="" approved="" system="" (see="" 52.245-3).="" (b)="" when="" contracting="" on="" a="" fixed-price="" competitive="" basis="" for="" services="" to="" be="" performed="" on="" real="" property="" owned="" or="" leased="" by="" the="" government,="" contracting="" officers="" may="" use="" alternate="" i="" to="" the="" clause="" at="" 52.245-1="" to="" limit="" a="" contractor's="" risks="" of="" damage="" to,="" or="" loss,="" theft,="" or="" destruction="" of,="" government="" furnished="" property,="" provided="" such="" limitation="" would="" reduce="" significantly="" the="" costs="" of="" contract="" performance.="" annotate="" the="" contract="" file="" with="" appropriate="" documentation.="" (c)="" contracting="" officers="" shall="" require="" contractors="" to="" assume="" the="" risks="" of,="" and="" reimburse="" the="" government="" for,="" damage="" to="" (except="" reasonable="" wear="" and="" tear)="" or="" loss,="" theft,="" or="" destruction="" of,="" government="" property="" that="" occurs="" while="" the="" property="" is="" being="" used="" for="" commercial="" purposes.="" if="" the="" damaged,="" lost,="" stolen,="" or="" destroyed="" property="" is="" required="" for="" continued="" performance="" of="" a="" government="" contract="" and="" cannot="" be="" repaired="" or="" replaced="" by="" the="" contractor="" without="" affecting="" scheduled="" deliveries,="" restitution="" should="" include="" schedule="" adjustments="" at="" no="" cost="" to="" the="" government.="" negotiate="" an="" equitable="" adjustment="" in="" price="" in="" lieu="" of="" repair="" or="" replacement="" when="" the="" property="" is="" not="" required="" for="" continued="" performance="" of="" a="" government="" contract.="" 45.105="" right="" to="" title,="" special="" tooling="" and="" special="" test="" equipment.="" (a)="" under="" the="" clause="" at="" 52.245-2,="" special="" tooling="" and="" special="" test="" equipment="" right="" to="" title="" (fixed-price="" contracts),="" the="" government="" has="" the="" right="" to="" take="" title="" to="" special="" tooling="" or="" special="" test="" equipment="" that="" is="" not="" deliverable="" under="" a="" contract="" if="" the="" tooling="" or="" test="" equipment="" costs="" were="" allocated="" to="" the="" contract="" as="" direct="" costs.="" the="" right="" must="" be="" exercised="" within="" 120="" days="" following="" the="" contractor's="" notice="" that="" special="" tooling="" or="" special="" test="" equipment="" items="" are="" no="" longer="" required="" for="" contract="" performance="" unless="" the="" contractor="" and="" the="" government="" have="" agreed="" to="" a="" different="" period.="" (b)="" the="" contractor="" is="" obligated="" to="" store="" the="" property="" at="" its="" expense="" during="" the="" notice="" period.="" storage="" subsequent="" to="" an="" election="" of="" title="" is="" at="" government="" expense.="" subpart="" 45.2--furnishing="" government="" property="" sec.="" 45.201="" furnishing="" property="" for="" performance="" of="" a="" government="" contract.="" 45.201-1="" general.="" subject="" to="" the="" additional="" restrictions="" and="" documentation="" requirements="" in="" 45.201-2="" and="" 45.201-3,="" government="" property="" other="" than="" commercial="" items="" (see="" 2.101)="" may="" be="" furnished="" for="" performance="" of="" a="" contract="" only="" when="" at="" least="" one="" of="" the="" criteria="" in="" paragraph="" (a)="" of="" this="" section="" is="" satisfied.="" government-owned="" commercial="" items="" may="" be="" furnished="" to="" contractors="" only="" under="" the="" circumstances="" described="" in="" paragraph="" (b)="" of="" this="" section.="" (a)="" criteria.="" (1)="" the="" government="" is="" the="" sole="" source="" of="" property="" required="" to="" perform="" a="" contract;="" (2)="" the="" property's="" use="" will="" result="" in="" substantial="" measurable="" cost="" savings="" to="" the="" government="" when="" compared="" to="" estimated="" costs="" of="" contract="" performance="" without="" such="" property="" (consider="" the="" government's="" costs="" to="" activate="" property="" or="" maintain="" property="" in="" an="" active="" status="" when="" determining="" cost="" savings);="" (3)="" the="" government="" must="" furnish="" the="" property="" to="" assure="" that="" items="" delivered="" under="" a="" contract="" are="" compatible="" with="" other="" government="" items;="" (4)="" the="" property="" must="" be="" furnished="" to="" accomplish="" repairs="" to,="" or="" maintenance="" or="" reconditioning="" of,="" government="" furnished="" property="" or="" items="" to="" be="" delivered="" under="" a="" contract="" and="" such="" repair,="" maintenance,="" or="" reconditioning="" is="" not="" the="" contractor's="" responsibility="" under="" the="" contract;="" (5)="" the="" property="" must="" be="" furnished="" to="" respond="" to="" an="" unusual="" and="" compelling="" urgency="" for="" supplies="" or="" services="" (see="" 6.302-2)="" or="" to="" support="" contingency="" contracting;="" (6)="" the="" government="" property="" will="" be="" used="" as="" a="" standard;="" (7)="" equipment="" in="" the="" government's="" possession="" prior="" to="" award="" of="" a="" contract="" to="" be="" performed="" on="" real="" property="" owned="" or="" leased="" by="" the="" government="" may="" be="" furnished="" for="" performance="" of="" that="" contract="" subject="" to="" the="" constraints="" in="" 45.201-1(b);="" (8)="" the="" property="" will="" be="" used="" on="" a="" contract="" for="" scientific="" research="" conducted="" by="" an="" institution="" of="" higher="" education="" or="" a="" nonprofit="" organization;="" or="" (9)="" government="" furnished="" equipment="" or="" real="" property="" is="" needed="" for="" the="" retention="" or="" operation="" of="" an="" essential,="" government-owned="" capability.="" (b)="" commercial="" items.="" government="" owned="" commercial="" items="" that="" are="" being="" furnished="" to="" contractors="" for="" performance="" of="" a="" government="" contract="" may="" be="" furnished="" for="" performance="" of="" follow-on="" [[page="" 30193]]="" contracts="" for="" the="" identical="" items="" or="" substantially="" similar="" services="" with="" the="" same="" or="" successor="" contractors="" until="" the="" commercial="" item="" is="" no="" longer="" suitable="" for="" intended="" use.="" repairs="" to="" such="" property="" shall="" be="" authorized="" only="" to="" the="" extent="" necessary="" to="" complete="" current="" contract="" performance.="" if="" the="" item="" cannot="" be="" repaired,="" it="" may="" be="" replaced="" with="" another="" commercial="" item="" from="" existing="" government-owned="" property.="" do="" not="" authorize="" a="" contractor="" to="" acquire="" a="" commercial="" item="" as="" a="" replacement="" for="" irreparable="" government="" furnished="" property="" if="" the="" replacement="" item="" will="" become="" government="" property="" under="" any="" government="" contract.="" for="" commercial="" computer="" software="" or="" commercial="" computer="" software="" documentation,="" the="" authority="" of="" this="" paragraph="" may="" be="" exercised="" only="" when="" the="" government="" has="" a="" license="" in="" the="" software="" or="" documentation="" that="" permits="" release="" or="" disclosure="" to,="" and="" use="" by,="" third="" parties="" and="" the="" software="" or="" documentation="" is="" required="" to="" operate,="" maintain,="" or="" install="" other="" government="" property="" furnished="" for="" performance="" of="" a="" government="" contract.="" 45.201-2="" additional="" restrictions.="" (a)="" material.="" (1)="" prior="" to="" furnishing="" material="" for="" which="" the="" government="" is="" the="" sole="" source,="" verify="" that="" only="" the="" type="" and="" quantity="" of="" material="" required="" for="" contract="" performance="" is="" furnished.="" such="" quantity="" may="" include="" reasonable="" amounts="" for="" repairs="" or="" corrections="" to="" work="" in="" process,="" scrap,="" or="" spoilage="" provided="" the="" government="" continues="" to="" be="" the="" only="" source="" for="" such="" material.="" (2)="" except="" as="" provided="" in="" 45.201-1(a)(2),="" (4),="" or="" (5),="" do="" not="" furnish="" to="" contractors="" material="" customarily="" offered="" for="" sale="" in="" the="" commercial="" marketplace.="" (b)="" equipment.="" government-owned="" equipment="" that="" is="" not="" a="" commercial="" item="" (see="" 2.201)="" may="" be="" furnished="" to="" contractors="" only="" as="" provided="" in="" 45.201-1(a)(4),="" (5),="" (7),="" (8),="" or="" (9).="" (c)="" noncommercial="" computer="" software="" or="" computer="" software="" documentation.="" do="" not="" furnish="" noncommercial="" computer="" software="" or="" noncommercial="" computer="" software="" documentation="" (see="" 52.227-14="" or,="" for="" dod,="" defense="" federal="" acquisition="" regulation="" supplement="" (dfars)="" 48="" cfr="" 252.227-7014)="" to="" contractors="" unless="" the="" government="" is="" the="" software="" or="" documentation="" licensor="" or,="" prior="" to="" furnishing="" the="" software="" or="" documentation,="" the="" government="" obtains="" a="" license="" in="" the="" software="" or="" documentation="" that="" permits="" release="" or="" disclosure="" to,="" or="" use="" by,="" third="" parties="" and="" the="" intended="" recipient="" has="" completed="" any="" use="" and="" nondisclosure="" agreement="" required="" by="" part="" 27="" or="" (dfars)="" 48="" cfr="" part="" 227.="" 45.201-3="" documentation="" requirements.="" decisions="" to="" furnish="" commercial="" items,="" real="" property,="" or="" equipment="" to="" contractors="" must="" be="" documented="" in="" the="" contract="" file.="" contracting="" officers="" may="" make="" decisions="" based="" upon="" the="" criteria="" in="" 45.201-1(a)(3)="" through="" (6)="" and="" (8).="" unless="" other="" approval="" levels="" are="" designated="" in="" agency="" supplements,="" approval="" is="" required="" by--="" (a)="" the="" contracting="" officer's="" first="" level="" supervisor="" when="" using="" the="" criterion="" in="" 45.201-1(a)(2);="" (b)="" the="" contracting="" officer's="" second="" level="" supervisor="" when="" using="" the="" criteria="" in="" 45.201-1(a)(1)="" or="" (7);="" or="" (c)="" the="" head="" of="" the="" contracting="" activity="" when="" using="" the="" criterion="" in="" 45.201-1(a)(9).="" 45.201-4="" competitive="" advantage.="" offerors="" who="" will="" use="" government="" property="" to="" perform="" a="" contract="" have="" a="" price="" advantage="" relative="" to="" competitors="" who="" will="" acquire,="" fabricate,="" or="" use="" their="" own="" property="" to="" perform="" that="" contract.="" when="" evaluating="" offers,="" that="" advantage="" must="" be="" eliminated="" to="" the="" extent="" practicable="" (see="" 15.608).="" 45.201-5="" solicitation="" and="" contract="" requirements.="" when="" government="" property="" will="" be="" made="" available="" for="" contract="" performance--="" (a)="" competitive="" solicitations="" shall--="" (1)="" list="" the="" available="" property="" by="" item="" name,="" national="" stock="" number="" (if="" the="" item="" has="" a="" national="" stock="" number),="" or="" other="" appropriate="" nomenclature;="" and,="" identify="" the="" quantity="" available;="" (2)="" include,="" or="" offer="" to="" provide,="" real="" property="" maps,="" drawings,="" plans,="" or="" similar="" information="" in="" sufficient="" detail="" to="" enable="" an="" offeror="" to="" prepare="" its="" offer;="" (3)="" separately="" identify="" property="" available="" on="" an="" ``as="" is''="" basis="" and="" require="" the="" successful="" offeror="" to="" pay="" the="" cost="" of="" transporting="" such="" property="" to="" its="" facility;="" (4)="" separately="" identify="" property="" the="" government="" must="" reactivate,="" rehabilitate,="" or="" convert;="" (5)="" identify="" the="" evaluation="" factors="" that="" will="" be="" applied="" to="" the="" price="" of="" offers="" that="" contemplate="" use="" of="" government="" furnished="" property.="" the="" factors="" may="" be="" specified="" as="" a="" dollar="" amount,="" a="" formula,="" or="" any="" combination="" thereof;="" (6)="" identify="" any="" special="" requirements="" for="" security,="" maintenance,="" liability,="" or="" property="" control;="" and="" (7)="" require="" all="" offerors="" to="" submit="" with="" their="" offers="" the="" following="" information--="" (i)="" a="" list="" or="" description="" of="" all="" government="" property="" the="" offeror="" or="" its="" subcontractors="" propose="" to="" use="" on="" a="" rent-free="" basis.="" the="" list="" shall="" include="" property="" offered="" for="" use="" in="" the="" solicitation="" and="" property="" already="" in="" possession="" of="" the="" offeror="" or="" its="" prospective="" subcontractors="" under="" other="" contracts;="" (ii)="" an="" identification="" of="" the="" contract="" or="" other="" instrument="" under="" which="" property="" already="" in="" the="" offeror's="" and="" its="" prospective="" subcontractors="" is="" accountable,="" and="" written="" permission="" from="" the="" cognizant="" contracting="" officer="" authorizing="" the="" property's="" use="" for="" performance="" of="" the="" proposed="" contract;="" (iii)="" the="" rental="" period,="" rental="" time,="" and="" time="" available="" for="" use="" (see="" 52.245-5)="" and="" offeror's="" estimated="" costs="" to="" acquire,="" fabricate,="" lease,="" or="" rent="" the="" property="" if="" it="" is="" not="" furnished="" by="" the="" government;="" and="" (iv)="" a="" statement="" as="" to="" whether="" the="" offeror="" has="" an="" approved="" property="" control="" system,="" the="" date="" the="" system="" was="" last="" reviewed,="" and="" the="" name="" and="" address="" of="" the="" government's="" property="" administrator="" who="" performed="" the="" last="" review.="" (b)="" contracts="" shall--="" (1)="" list="" and="" identify="" (nomenclature,="" quantity,="" serial="" number,="" or="" other="" appropriate="" identifier,="" or,="" for="" real="" property,="" maps,="" drawings,="" plans="" or="" similar="" information)="" the="" government="" property="" furnished="" for="" performance="" of="" the="" contract;="" (2)="" separately="" identify="" property="" furnished="" ``as="" is'';="" (3)="" identify="" any="" constraints="" on="" the="" period="" for,="" or="" amount="" of,="" use;="" (4)="" identify="" any="" special="" requirements="" for="" security,="" maintenance,="" liability,="" or="" property="" control="" applicable="" to="" a="" particular="" government="" furnished="" item;="" (5)="" identify="" any="" government="" furnished="" property="" that="" is="" to="" be="" returned="" directly="" to="" the="" contracting="" activity="" in="" lieu="" of="" initiating="" disposal="" action="" and="" specify="" the="" method="" and="" point="" of="" return;="" and="" (6)="" for="" fixed="" price="" construction="" contracts="" that="" contemplate="" furnishing="" property="" f.o.b.="" railroad="" cars="" or="" f.o.b.="" truck,="" specify="" the="" point="" of="" delivery="" and="" include="" appropriate="" terms="" and="" conditions="" if="" the="" government="" or="" another="" person="" will="" install,="" prepare,="" or="" test="" the="" property.="" 45.201-6="" postaward="" requests="" for="" government="" furnished="" property.="" except="" as="" provided="" in="" 45.201-7,="" do="" not="" furnish="" government="" property="" to="" contractors="" subsequent="" to="" contract="" award="" unless="" adequate="" consideration="" is="" received.="" if="" a="" contractor="" requests="" the="" use="" of="" property="" that="" is="" not="" accountable="" under="" your="" contract,="" do="" not="" authorize="" use="" until="" the="" contracting="" officer="" for="" the="" contract="" under="" which="" the="" property="" is="" accountable="" concurs="" with="" the="" proposed="" use.="" modify="" each="" contract="" for="" which="" use="" is="" authorized="" to="" identify="" the="" conditions="" [[page="" 30194]]="" for="" use="" and="" the="" applicable="" consideration.="" 45.201-7="" repair="" or="" replacement="" of="" government="" furnished="" property.="" (a)="" except="" for="" property="" furnished="" to="" a="" contractor="" on="" an="" ``as="" is''="" basis,="" contracting="" officers="" may="" elect="" to="" repair="" or="" replace,="" direct="" the="" contractor="" to="" repair,="" or="" direct="" the="" contractor="" to="" dispose="" of="" government="" furnished="" property="" that--="" (1)="" is="" received="" by="" the="" contractor="" in="" a="" condition="" not="" suitable="" for="" its="" intended="" use;="" (2)="" routine="" or="" preventative="" maintenance="" cannot="" maintain="" in="" a="" condition="" suitable="" for="" intended="" use;="" or="" (3)="" is="" lost,="" stolen,="" destroyed,="" or="" damaged="" and="" the="" government="" has="" assumed="" the="" risk="" of="" such="" loss,="" theft,="" destruction,="" or="" damage.="" (b)="" consult="" with="" appropriate="" technical,="" logistics,="" program="" office,="" and="" property="" specialists,="" to="" determine="" whether="" the="" government="" furnished="" property="" should="" be="" replaced,="" the="" appropriate="" method="" and="" type="" of="" replacement,="" or="" if="" the="" contractor="" should="" repair="" the="" property.="" if="" the="" government="" does="" not="" elect="" to="" repair="" or="" replace="" government="" furnished="" property="" that="" is="" needed="" for="" continued="" contract="" performance,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" under="" the="" clause="" at="" 52.245-1="" or="" 52.245-4.="" 45.202="" authorizing="" the="" use="" of="" government="" furnished="" property="" for="" commercial="" purposes.="" (a)="" this="" section="" does="" not="" apply="" to="" contracts="" subject="" to="" the="" armament="" retooling="" and="" manufacturing="" support="" act="" of="" 1992.="" (b)="" unless="" prohibited="" by="" law,="" contracting="" officers="" may="" authorize="" the="" contractor="" performing="" a="" contract="" under="" which="" government="" property="" is="" accountable="" to="" use="" that="" property="" for="" commercial="" purposes="" on="" a="" noninterference="" basis="" if="" the="" government="" receives="" an="" equitable="" rental="" for="" such="" use.="" the="" contractor="" shall="" be="" required="" to="" assume="" the="" risk="" of,="" and="" reimburse="" the="" government="" for,="" any="" damage="" to,="" or="" loss,="" theft,="" or="" destruction="" of="" the="" property="" except="" damage="" resulting="" from="" wear="" and="" tear="" reasonable="" for="" the="" period="" the="" property="" was="" authorized="" for="" commercial="" use="" and="" to="" indemnify="" the="" government="" against="" claims="" for="" injury="" to="" persons="" or="" damage="" to="" the="" contractor's="" or="" third="" parties="" property="" arising="" from="" the="" contractor's="" use="" or="" possession="" of="" the="" government="" property="" for="" commercial="" purposes.="" (c)="" authorization="" for="" commercial="" purposes="" must="" be="" reflected="" in="" a="" contract="" modification="" and="" specify--="" (1)="" the="" property="" is="" available="" ``as="" is''="" without="" any="" representation="" as="" to="" suitability="" for="" intended="" use;="" (2)="" the="" time="" period="" during="" which="" the="" property="" may="" be="" used;="" (3)="" any="" restrictions="" on,="" or="" conditions="" of,="" use;="" and="" (4)="" the="" rent="" or="" estimated="" rent="" the="" government="" will="" receive.="" (d)="" contracts="" that="" contain="" the="" clause="" at="" 52.245-9,="" use="" and="" charges,="" may="" be="" modified="" to="" replace="" that="" clause="" with="" the="" clause="" at="" 52.245-5,="" rental="" charges="" for="" commercial="" use,="" if="" adequate="" consideration="" is="" obtained.="" (e)="" the="" contracting="" officer="" shall="" not="" revoke="" an="" authorization="" to="" use="" government="" property="" for="" commercial="" purposes="" unless="" the="" contractor="" fails="" to="" comply="" with="" the="" requirements="" in="" 52.245-5="" or="" the="" government="" has="" a="" compelling="" need="" that="" precludes="" continued="" availability="" for="" commercial="" use.="" subpart="" 45.3--government="" property="" management="" 45.301="" property="" control="" systems.="" 45.301-1="" preaward="" considerations.="" (a)="" contracting="" officers="" should="" consider="" whether="" an="" offeror's="" property="" management="" capabilities="" might="" affect="" source="" selection="" and="" structure="" appropriate="" evaluation="" criteria.="" (b)="" when="" property="" management="" capabilities="" will="" be="" evaluated,="" the="" cognizant="" property="" administrators="" should="" verify="" whether="" offerors="" have="" approved="" property="" control="" systems="" and="" make="" recommendations="" regarding="" the="" adequacy="" of="" offerors="" plans="" to="" establish="" an="" acceptable="" system.="" 45.301-2="" property="" control="" system="" reviews="" and="" approvals.="" (a)="" general.="" (1)="" contractors="" are="" responsible="" for="" their="" subcontractors'="" compliance="" with="" the="" property="" control="" system="" requirements="" in="" 52.245-3.="" a="" contractor's="" system="" and="" processes="" must="" provide="" for="" the="" control="" of="" property="" in="" the="" possession="" of="" its="" subcontractors.="" (2)="" the="" periods="" for="" establishing="" a="" new="" system="" or="" submitting="" changes="" to="" an="" existing="" system="" should="" be="" extended="" only="" when="" the="" contractor="" demonstrates="" a="" reasonable="" need="" for="" an="" extension.="" when="" authorizing="" an="" extension,="" specify="" the="" new="" establishment="" or="" submission="" date(s).="" (3)="" the="" clause="" at="" 52.245-3="" generally="" prohibits="" contractor="" personnel="" who="" maintain="" property="" records="" or="" who="" have="" custody="" of="" property="" from="" performing="" physical="" inventories.="" property="" administrators="" may="" waive="" that="" prohibition="" if="" there="" is="" no="" information="" or="" prior="" contractor="" experience="" that="" suggests="" a="" waiver="" would="" adversely="" affect="" the="" government's="" property="" interests.="" (b)="" new="" systems="" or="" systems="" not="" previously="" reviewed="" by="" the="" government.="" property="" administrators="" shall="" review="" new="" property="" control="" systems="" or="" existing="" contractor="" systems="" that="" have="" not="" been="" reviewed="" by="" a="" government-employed="" property="" administrator="" as="" soon="" as="" practicable.="" (1)="" promptly="" refer="" to="" the="" contracting="" officer="" a="" contractor's="" failure="" to="" establish="" a="" property="" control="" system="" that="" satisfies="" the="" requirements="" in="" 52.245-3.="" (2)="" approve="" and="" not="" require="" changes="" to="" a="" contractor="" system="" or="" proposed="" system="" that="" satisfies="" all="" requirements="" in="" 52.245-3(b).="" (3)="" require="" contractors="" to="" change="" proposed="" property="" control="" systems="" that="" do="" not="" satisfy="" all="" requirements="" in="" 52.245-3(b)="" only="" to="" the="" extent="" necessary="" for="" compliance="" with="" those="" requirements.="" notify="" the="" contractor="" of="" the="" corrections="" required="" and="" specify="" the="" date(s)="" by="" which="" the="" corrections="" must="" be="" made.="" if="" a="" contractor="" fails="" to="" make="" required="" corrections="" within="" the="" time="" specified,="" issue="" the="" notice="" required="" by="" paragraph="" (f)(4)="" of="" alternate="" i="" to="" 52.245-1,="" (f)(4)="" of="" 52.245-4,="" or="" (i)(3)="" of="" 52.245-6,="" and="" simultaneously="" notify="" the="" contracting="" officer.="" (c)="" changes="" necessitated="" by="" contract="" award.="" the="" clause="" at="" 52.245-3="" requires="" a="" contractor="" that="" has="" a="" previously="" approved="" property="" control="" system="" to="" submit="" to="" the="" government's="" property="" administrator="" within="" 90="" days="" following="" contract="" award="" changes="" to="" its="" property="" control="" system="" necessitated="" by="" award="" of="" a="" new="" contract.="" (1)="" property="" administrators="" shall="" review="" contractor-proposed="" changes="" promptly="" following="" receipt="" to="" assure="" compliance="" with="" the="" contract's="" property="" control="" system="" requirements.="" validate="" the="" systems'="" approval="" if="" the="" contractor="" proposed="" changes="" are="" sufficient="" to="" assure="" compliance="" with="" 52.245-3(b).="" require="" other="" changes="" only="" if="" necessary="" for="" compliance.="" notify="" the="" contractor="" of="" the="" corrections="" required,="" and="" specify="" the="" date(s)="" by="" which="" the="" corrections="" must="" be="" made.="" (2)="" if="" the="" contractor="" fails="" to="" make="" the="" required="" corrections="" within="" the="" time="" specified,="" issue="" the="" notice="" required="" by="" paragraph="" (f)(4)="" of="" alternate="" i="" to="" 52.245-1,="" (f)(4)="" of="" 52.245-4,="" or="" (i)(3)="" of="" 52.245-6,="" and="" advise="" the="" contractor="" that="" its="" failure="" to="" correct="" its="" system="" or="" to="" have="" a="" subcontractor="" system="" corrected="" within="" the="" time="" specified="" might="" result="" in="" the="" contractor's="" assumption="" of="" liability="" for="" any="" damage="" to,="" or="" loss,="" theft,="" or="" destruction="" of,="" government="" property="" that="" the="" government="" would="" otherwise="" be="" liable="" for="" under="" those="" clauses.="" [[page="" 30195]]="" simultaneously="" notify="" the="" contracting="" officer.="" (d)="" corrections="" following="" property="" control="" system="" reviews.="" when="" a="" property="" control="" system="" review="" discloses="" that="" a="" previously="" approved="" system="" no="" longer="" satisfies="" any="" requirement="" of="" 52.245-3(b),="" provide="" a="" correction="" notice="" to="" the="" contractor.="" specify="" the="" corrections="" required="" to="" make="" the="" contractor's="" or="" a="" subcontractor's="" system="" compliant="" and="" specify="" the="" date="" for="" completing="" corrective="" action.="" if="" the="" contract="" includes="" the="" clause="" at="" 52.245-1="" with="" its="" alternate="" i,="" 52.245-4,="" or="" 52.245-6,="" advise="" the="" contractor="" that="" its="" failure="" to="" correct="" its="" system="" or="" to="" have="" a="" subcontractor="" system="" corrected="" within="" the="" time="" specified="" might="" result="" in="" the="" contractor's="" assumption="" of="" liability="" for="" any="" damage="" to,="" or="" loss,="" theft,="" or="" destruction="" of,="" government="" property="" that="" the="" government="" would="" otherwise="" be="" liable="" for="" under="" those="" clauses.="" (e)="" withdrawing="" system="" approval.="" the="" clause="" at="" 52.245-3="" requires="" the="" administrative="" contracting="" officer's="" concurrence="" to="" withdraw="" approval="" of="" an="" approved="" property="" control="" system.="" generally,="" approval="" should="" be="" withdrawn="" when="" a="" contractor="" fails="" to="" maintain="" a="" government="" property="" control="" system="" that="" satisfies="" the="" requirements.="" 45.302="" government="" property="" records="" and="" reports.="" (a)="" generally,="" it="" is="" in="" the="" government's="" interests="" to="" have="" the="" contractor="" generate="" records="" and="" reports="" of="" government="" property="" using="" the="" same="" practices="" the="" contractor="" uses="" for="" its="" own="" property.="" if="" the="" contractor's="" practices="" generate="" the="" property="" records,="" reports,="" and="" supporting="" information="" required="" by="" 52.245-3(e)="" and="" (f),="" do="" not="" require="" the="" contractor="" to="" modify="" its="" practices.="" when="" changes="" are="" necessary,="" require="" the="" contractor="" to="" make="" only="" the="" changes="" necessary="" to="" assure="" compliance="" with="" 52.245-3(e).="" do="" not="" require="" contractors="" to="" use="" specific="" media="" for="" their="" records.="" (b)="" the="" property="" records="" maintained="" by="" a="" contractor="" are="" the="" government's="" official="" property="" records.="" a="" contracting="" office="" may="" elect="" to="" establish="" and="" maintain="" the="" government's="" property="" records="" and="" generate="" required="" property="" reports="" when="" the="" contracting="" office="" retains="" contract="" administration="" functions="" and="" the="" contracting="" officer="" considers="" government="" record="" keeping="" and="" reports="" generation="" to="" be="" in="" the="" government's="" interests.="" circumstances="" under="" which="" such="" record="" keeping="" and="" reporting="" might="" be="" warranted="" are="" contracts="" with="" performance="" periods="" less="" than="" 6="" months="" or="" when="" government="" property="" will="" be="" furnished="" for="" performance="" of="" a="" contract="" to="" manage="" or="" operate="" for="" the="" government,="" or="" perform="" services="" entirely="" at,="" activities="" such="" as="" installations,="" bases,="" or="" portions="" thereof,="" warehouses,="" libraries,="" stock="" rooms,="" mailrooms,="" or="" computer="" centers="" located="" entirely="" at="" real="" property="" owned="" or="" leased="" by="" the="" government.="" (c)="" the="" contracting="" office="" shall="" process="" property="" reports="" in="" accordance="" with="" agency="" procedures.="" 45.303="" property="" accountability.="" 45.303-1="" accountability.="" (a)="" government="" furnished="" property="" is="" accountable="" generally="" under="" the="" contract="" for="" which="" it="" was="" furnished="" (see="" 45.401-3).="" (b)="" contractor="" acquired="" or="" fabricated="" property="" to="" which="" the="" government="" has="" title="" under="" the="" clause="" at="" 52.245-2="" or="" 52.216-7="" is="" accountable="" under="" the="" contract="" for="" which="" the="" property="" was="" acquired="" or="" fabricated="" until="" the="" contracting="" officer="" directs="" a="" transfer="" of="" accountability,="" the="" property="" is="" placed="" aboard="" a="" carrier's="" conveyance="" (f.o.b.="" origin),="" or="" delivered="" at="" the="" specified="" f.o.b.="" destination="" point.="" (c)="" when="" government="" property="" accountable="" under="" a="" contract,="" but="" not="" deliverable="" to="" the="" government="" under="" that="" contract,="" is="" no="" longer="" needed="" for="" performance="" of="" the="" contract,="" the="" property="" should="" be="" entered="" into="" the="" disposal="" process="" (see="" 45.304)="" except="" when="" the="" property="" is--="" (1)="" government="" furnished="" property="" identified="" in="" the="" contract="" for="" return="" directly="" to="" the="" contracting="" activity;="" (2)="" government="" furnished="" property="" specifically="" and="" currently="" needed="" for="" the="" performance="" of="" other="" government="" contracts;="" (3)="" property="" to="" which="" the="" government="" has="" title="" that="" is="" needed="" to="" preserve="" or="" maintain="" an="" essential="" industrial="" capability;="" or="" (4)="" contractor="" acquired="" or="" fabricated="" property="" to="" which="" the="" government="" has="" title="" that="" will="" be="" furnished="" to="" a="" contractor="" as="" government="" furnished="" property="" for="" performance="" of="" a="" government="" contract="" other="" than="" the="" contract="" under="" which="" the="" property="" was="" acquired="" or="" fabricated.="" 45.303-2="" transferring="" accountability.="" property="" accountability="" may="" be="" transferred="" to="" other="" contracts="" only="" under="" the="" circumstances="" identified="" in="" 45.303-1(c).="" (a)="" price="" adjustment.="" when="" a="" property="" item's="" accountability="" is="" transferred="" to="" a="" contract="" for="" performance="" of="" that="" contract,="" the="" price="" or="" estimated="" cost="" and="" fee="" of="" the="" receiving="" contract="" should="" be="" equitably="" reduced="" if="" the="" receiving="" contract's="" current="" price="" or="" estimated="" cost="" and="" fee="" was="" established="" without="" a="" requirement="" for="" the="" government="" to="" furnish="" the="" property="" item="" as="" government="" furnished="" property="" for="" that="" contract.="" (b)="" special="" tooling="" or="" special="" test="" equipment.="" accountability="" for="" a="" special="" tooling="" or="" special="" test="" equipment="" item="" to="" which="" the="" government="" has="" obtained="" title="" under="" the="" clause="" at="" 52.245-2="" or="" 52.216-7,="" may="" be="" transferred="" to="" another="" contract="" for="" performance="" of="" that="" contract="" provided="" that="" the="" property="" is="" identified="" as="" property="" furnished="" ``as="" is''="" and="" the="" receiving="" contract's="" price="" or="" estimated="" cost="" and="" fee="" is="" adjusted="" in="" accordance="" with="" 45.303-2(a)="" and="" property="" records="" are="" adjusted="" in="" accordance="" with="" 45.303-2(d).="" accountability="" instructions="" should="" be="" included="" in="" the="" assumption="" of="" title="" notice="" required="" by="" 52.245-2.="" (c)="" contractor="" acquired="" or="" fabricated="" property="" (other="" than="" special="" tooling="" or="" special="" test="" equipment).="" accountability="" for="" property="" to="" which="" the="" government="" has="" obtained="" title="" under="" the="" clause="" at="" 52.216-7="" may="" be="" transferred="" to="" another="" contract="" when="" the="" property="" is="" no="" longer="" needed="" for="" performance="" of="" the="" contract="" under="" which="" the="" property="" was="" acquired="" or="" fabricated="" provided="" the="" receiving="" contract's="" price="" or="" estimated="" cost="" and="" fee="" is="" adjusted="" in="" accordance="" with="" paragraph="" (a)="" of="" this="" section="" and="" property="" records="" are="" adjusted="" in="" accordance="" with="" paragraph="" (d)="" of="" this="" section.="" (d)="" property="" records.="" all="" property="" accountability="" transfers="" must="" be="" reflected="" in="" the="" property="" control="" records="" for="" the="" contract="" from="" which="" accountability="" is="" transferred="" (the="" losing="" contract)="" and="" the="" contract="" to="" which="" accountability="" is="" transferred="" (the="" gaining="" contract).="" when="" a="" government="" furnished="" property="" item's="" accountability="" is="" transferred,="" the="" respective="" contracting="" officers="" must="" modify="" the="" list="" of="" government="" furnished="" property="" items="" contained="" in="" the="" losing="" and="" gaining="" contracts.="" 45.304="" property="" disposal.="" 45.304-1="" government="" furnished="" property="" to="" be="" returned="" to="" the="" contracting="" activity.="" when="" a="" contract="" requires="" the="" contractor="" to="" return="" government="" furnished="" property="" directly="" to="" the="" contracting="" activity,="" the="" government's="" property="" administrator="" should="" determine="" the="" property's="" condition="" as="" near="" to="" the="" return="" date="" as="" practicable="" and="" promptly="" notify="" the="" contracting="" officer="" if="" the="" property="" is="" not="" suitable="" for="" its="" intended="" use.="" the="" contracting="" officer="" promptly="" shall="" direct="" the="" contractor="" to="" take="" any="" necessary="" corrective="" action="" or,="" if="" corrective="" action="" is="" not="" practical,="" [[page="" 30196]]="" negotiate="" an="" equitable="" adjustment="" and="" direct="" the="" contractor="" to="" add="" the="" property="" to="" an="" inventory="" disposal="" schedule,="" and="" promptly="" advise="" the="" government's="" property="" administrator="" of="" the="" action="" directed.="" 45.304-2="" disposal="" priorities.="" the="" clause="" at="" 52.245-4="" requires="" contractors="" to="" make="" reasonable="" efforts="" to="" return="" contractor="" acquired="" or="" fabricated="" government="" property="" that="" is="" no="" longer="" needed="" for="" contract="" performance="" to="" the="" appropriate="" supplier="" or="" to="" use="" the="" property="" in="" performance="" of="" other="" contracts="" before="" including="" the="" property="" in="" an="" inventory="" disposal="" schedule.="" plant="" clearance="" officers="" shall="" initiate="" action="" to="" dispose="" of="" scheduled="" property="" using="" the="" highest="" priority="" method="" appropriate="" for="" the="" property.="" authorized="" methods,="" listed="" in="" descending="" order="" from="" highest="" to="" lowest="" priority,="" are--="" (a)="" re-use="" within="" the="" government.="" (b)="" transfer="" of="" educationally="" useful="" federal="" equipment="" to="" schools="" and="" nonprofit="" organizations="" (see="" executive="" order="" 12999).="" (c)="" donation="" to="" other="" eligible="" donees.="" (d)="" sale.="" (e)="" donation="" to="" public="" bodies="" in="" lieu="" of="" abandonment.="" (f)="" abandonment="" or="" destruction.="" 45.304-3="" inventory="" disposal="" schedules.="" (a)="" the="" plant="" clearance="" officer="" should="" review,="" accept,="" return="" for="" correction,="" or="" reject="" the="" contractor's="" inventory="" disposal="" schedules="" within="" 10="" days="" following="" receipt.="" plant="" clearance="" officers="" may="" reject="" a="" schedule="" entirely="" or="" in="" part,="" or="" require="" correction="" of="" the="" information="" contained="" in="" the="" schedule.="" do="" not="" reject="" a="" schedule="" if--="" (1)="" the="" property's="" location,="" quantity="" and="" condition="" are="" correctly="" identified;="" (2)="" the="" property="" is="" accountable="" under="" the="" contract="" for="" which="" the="" schedule="" is="" submitted="" or,="" if="" submission="" follows="" a="" termination="" action,="" the="" property's="" costs="" are="" allocable="" to="" the="" contract="" as="" direct="" costs;="" and="" (3)="" the="" contractor,="" when="" the="" contract="" contains="" the="" clause="" at="" 52.245-4,="" has="" completed="" the="" actions="" required="" by="" 52.245-4(h)(1)(i)="" and="" (ii).="" (b)="" accepted="" schedules="" shall="" be="" verified="" within="" 20="" days="" following="" receipt.="" plant="" clearance="" officers="" shall="" require="" the="" contractor="" to="" correct="" any="" discrepancies="" found="" during="" verification.="" (c)="" scrap="" identified="" on="" an="" inventory="" disposal="" schedule="" may="" be="" disposed="" of="" upon="" verification="" of="" the="" schedule.="" screening="" is="" not="" required.="" classified="" items="" may="" be="" disposed="" of="" following="" agency="" screening="" (see="" 45.304-6).="" (d)="" contractors="" must="" obtain="" the="" plant="" clearance="" officer's="" approval="" to="" remove="" a="" government="" property="" item="" from="" an="" inventory="" disposal="" schedule.="" removal="" should="" be="" approved="" when="" the="" contractor="" has="" found="" a="" buyer="" for="" a="" contractor="" acquired="" or="" fabricated="" item="" at="" full="" acquisition="" cost,="" the="" contractor="" has="" found="" a="" use="" for="" such="" property="" on="" another="" government="" contract,="" or="" the="" contractor="" has="" justified="" continued="" use="" of="" a="" government="" furnished="" property="" item.="" consult="" with="" appropriate="" program="" and="" technical="" personnel="" to="" determine="" whether="" the="" contractor's="" rationale="" for="" retaining="" a="" government="" furnished="" property="" item="" is="" valid.="" if="" the="" screening="" process="" (45.304-5)="" has="" not="" begun,="" correct="" the="" schedule="" or="" return="" the="" schedule="" to="" the="" contractor="" for="" correction.="" if="" screening="" has="" begun,="" promptly="" notify="" the="" activity="" performing="" the="" screening="" and="" identify="" the="" items="" that="" should="" be="" removed="" from="" the="" screening="" process.="" 45.304-4="" scrap="" lists.="" (a)="" contractors="" that="" have="" government-approved="" scrap="" procedures="" may="" submit="" scrap="" lists="" in="" lieu="" of="" inventory="" disposal="" schedules="" to="" identify="" property="" the="" contractor="" recommends="" disposing="" of="" as="" scrap.="" review="" scrap="" lists="" within="" 10="" days="" following="" receipt.="" generally,="" the="" plant="" clearance="" officer="" should="" verify="" and="" accept="" scrap="" lists="" that="" are="" consistent="" with="" a="" contractor's="" government="" approved="" scrap="" procedures,="" correctly="" identify="" the="" contracts="" under="" which="" the="" property="" is="" accountable,="" and="" correctly="" identify="" the="" property's="" quantity="" and="" condition.="" reject="" or="" require="" correction="" of="" scrap="" lists="" that="" contain="" property="" that="" must="" be="" demilitarized="" prior="" to="" disposal,="" classified="" items,="" scrap="" generated="" from="" classified="" items,="" scrap="" that="" contains="" hazardous="" materials="" or="" precious="" metals,="" or="" items="" that="" are="" dangerous="" to="" the="" public="" health,="" safety,="" or="" welfare.="" require="" contractors="" to="" submit="" inventory="" disposal="" schedules="" for="" such="" items.="" (b)="" scrap="" identified="" on="" a="" scrap="" list="" may="" be="" disposed="" of="" promptly="" following="" the="" plant="" clearance="" officer's="" verification="" of="" the="" list.="" provide="" disposition="" instructions="" to="" the="" contractor="" within="" 60="" days="" following="" receipt="" of="" an="" acceptable="" scrap="" list.="" if="" disposition="" instructions="" are="" not="" provided="" within="" that="" period,="" the="" clauses="" at="" 52.245-1,="" 52.245-4,="" and="" 52.245-6="" permit="" a="" contractor="" to="" dispose="" of="" scrap="" identified="" on="" a="" scrap="" list.="" 45.304-5="" screening.="" (a)="" except="" as="" provided="" in="" 45.304-3(c)="" and="" 45.304-4(b),="" government="" property="" that="" is="" no="" longer="" required="" for="" performance="" of="" a="" particular="" contract="" shall="" not="" be="" disposed="" of="" until="" the="" agency="" owning="" the="" property="" has="" determined="" that="" there="" is="" no="" other="" reasonably="" foreseeable="" use="" for="" the="" property="" within="" the="" agency,="" a="" school="" or="" community="" based="" educational="" organization="" has="" not="" expressed="" an="" interest="" in="" an="" item="" of="" educationally="" useful="" federal="" equipment,="" and="" the="" general="" services="" administration="" (gsa)="" has="" determined="" that="" no="" other="" federal="" agency="" has="" a="" use="" for="" the="" property.="" (b)="" screening="" periods="" for="" property="" listed="" on="" an="" inventory="" disposal="" schedule="" begin="" upon="" the="" plant="" clearance="" officer's="" acceptance="" of="" the="" schedule.="" the="" plant="" clearance="" officer="" shall="" determine="" the="" appropriate="" screening="" method="" for="" excess="" property="" (see="" 45.304-6="" for="" standard="" screening="" and="" 45.304-7="" for="" special="" screening="" requirements),="" initiate="" screening,="" and="" assure="" accomplishment="" of="" transfer="" and="" donation.="" plant="" clearance="" officers="" shall="" not="" extend="" the="" times="" for="" agency="" screening="" without="" the="" prior="" approval="" of="" the="" gsa.="" 45.304-6="" standard="" screening.="" the="" standard="" screening="" period="" is="" 56="" days.="" (a)="" 1st="" through="" 20th="" day--screening="" by="" the="" contracting="" agency.="" the="" contracting="" agency="" has="" 20="" days="" to="" screen="" excess="" property="" for="" other="" use="" within="" the="" agency.="" plant="" clearance="" officers="" shall="" delete="" from="" the="" disposal="" schedules="" any="" items="" for="" which="" other="" intraagency="" use="" is="" identified,="" prepare="" revised="" schedules,="" and,="" no="" later="" than="" the="" 21st="" day,="" submit="" four="" copies="" of="" the="" revised="" schedules="" and="" standard="" form="" (sf)="" 120,="" report="" of="" excess="" personal="" property,="" or="" an="" electronic="" equivalent="" to="" the="" gsa.="" enter="" the="" date="" of="" the="" 56th="" day="" as="" the="" surplus="" release="" date="" and="" screening="" completion="" date.="" (b)="" 21st="" through="" 41st="" day--screening="" by="" all="" federal="" agencies.="" (1)="" gsa="" will="" honor="" requests="" for="" transfers="" of="" property="" on="" a="" ``first-come="" first-served''="" basis="" through="" the="" 41st="" day.="" the="" gsa="" regional="" office="" shall="" promptly="" transmit="" to="" the="" plant="" clearance="" officer="" the="" approved="" orders="" and="" shipping="" instructions="" for="" property="" to="" be="" transferred.="" (2)="" if="" the="" plant="" clearance="" officer="" receives="" a="" request="" to="" transfer="" a="" property="" item,="" he="" or="" she="" shall="" promptly="" request="" gsa="" approval="" to="" withdraw="" the="" item="" from="" the="" inventory="" disposal="" schedule.="" (c)="" 42nd="" through="" 56th="" day--gsa="" screening="" for="" possible="" donation.="" during="" this="" period,="" gsa="" shall="" screen="" property="" not="" identified="" for="" federal="" re-utilization="" for="" possible="" donation="" to="" eligible="" donees.="" 45.304-7="" special="" screening="" requirements.="" (a)="" special="" tooling="" and="" special="" test="" equipment="" that="" does="" not="" contain="" general="" purpose="" components.="" screen="" these="" items="" for="" re-="" utilization="" within="" the="" agency.="" except="" for="" the="" department="" of="" [[page="" 30197]]="" defense,="" if="" the="" agency="" has="" no="" further="" use="" for="" the="" tooling="" or="" test="" equipment,="" forward="" the="" inventory="" disposal="" schedule="" to="" the="" gsa="" regional="" office="" that="" serves="" the="" region="" in="" which="" the="" property="" is="" located.="" (b)="" special="" test="" equipment="" with="" general="" purpose="" components.="" (1)="" the="" clauses="" at="" 52.245-1,="" 52.245-4,="" and="" 52.245-6="" permit="" a="" contractor="" to="" identify="" special="" test="" equipment,="" or="" general="" purpose="" components="" thereof,="" the="" contractor="" can="" use="" in="" performance="" of="" other="" government="" contracts="" or="" to="" identify="" such="" equipment="" or="" components="" it="" wants="" to="" acquire="" from="" the="" government="" for="" other="" purposes.="" (2)="" complete="" the="" agency="" screening="" required="" by="" 45.304-6(a).="" if="" the="" agency="" has="" no="" further="" need="" for="" the="" property="" and="" the="" contractor="" has="" not="" expressed="" an="" interest="" in="" using="" or="" acquiring="" the="" property="" by="" annotating="" the="" inventory="" disposal="" schedule,="" forward="" the="" inventory="" disposal="" schedule="" to="" the="" gsa="" regional="" office="" that="" serves="" the="" region="" in="" which="" the="" property="" is="" located.="" if="" the="" contractor="" has="" expressed="" an="" interest="" in="" using="" the="" property="" on="" another="" government="" contract,="" contact="" the="" appropriate="" contracting="" officer="" for="" that="" contract.="" if="" he="" or="" she="" concurs="" with="" the="" proposed="" use,="" transfer="" the="" property's="" accountability="" to="" that="" contract.="" deny="" the="" contractor's="" request="" if="" the="" contracting="" officer="" does="" not="" concur="" with="" the="" proposed="" use="" and="" resume="" the="" screening="" process.="" if="" the="" contractor="" has="" expressed="" an="" interest="" in="" acquiring="" the="" property,="" and="" no="" other="" party="" has="" expressed="" an="" interest="" during="" agency="" or="" gsa="" screening,="" see="" 45.304-10.="" (c)="" printing="" equipment.="" report="" all="" excess="" printing="" equipment="" to="" the="" public="" printer,="" government="" printing="" office,="" north="" capitol="" and="" h="" streets,="" nw,="" washington,="" dc="" 20401,="" after="" screening="" within="" the="" agency="" (see="" 44="" u.s.c.="" 312).="" if="" the="" public="" printer="" has="" no="" requirement="" for="" the="" equipment,="" submit="" the="" report="" to="" the="" general="" services="" administration="" for="" further="" use="" and="" donation="" screening.="" (d)="" automatic="" data="" processing="" equipment="" (adpe).="" schools="" and="" community="" based="" educational="" organizations="" shall="" have="" priority="" for="" adpe="" that="" is="" educationally="" useful.="" dispose="" of="" adpe="" that="" will="" not="" be="" transferred="" to="" a="" school="" or="" community="" based="" educational="" organization="" in="" accordance="" with="" agency="" procedures.="" (e)="" non-nuclear="" hazardous="" materials.="" process="" these="" items="" in="" accordance="" with="" agency="" procedures.="" (f)="" nuclear="" materials.="" (1)="" the="" possession,="" use,="" and="" transfer="" of="" certain="" nuclear="" materials="" are="" subject="" to="" the="" regulatory="" controls="" of="" the="" nuclear="" regulatory="" commission="" (nrc).="" the="" materials="" are="" defined="" as--="" (i)="" by-product="" material--any="" radioactive="" material="" (except="" special="" nuclear="" material)="" yielded="" in="" or="" made="" radioactive="" by="" exposure="" to="" the="" radiation="" incident="" to="" producing="" or="" using="" special="" nuclear="" material.="" (ii)="" source="" material--uranium="" or="" thorium,="" or="" any="" combination="" thereof,="" in="" any="" physical="" or="" chemical="" form;="" or="" ores="" which="" contain="" by="" weight="" one-twentieth="" of="" 1="" percent="" (0.05="" percent)="" or="" more="" of="" uranium,="" thorium,="" or="" any="" combination="" thereof.="" source="" material="" does="" not="" include="" special="" nuclear="" material.="" (iii)="" special="" nuclear="" material--plutonium,="" uranium="" 233,="" uranium="" enriched="" in="" the="" isotope="" 233="" or="" in="" the="" isotope="" 235,="" and="" any="" other="" material="" that="" the="" nrc="" determines="" to="" be="" special="" nuclear="" material="" (but="" not="" including="" source="" material);="" or="" any="" material="" artificially="" enriched="" by="" any="" nuclear="" material.="" (2)="" contracting="" activities="" shall="" screen="" listings="" of="" excess="" nuclear="" material="" in="" the="" categories="" described="" in="" paragraph="" (b)(1)="" of="" this="" section.="" if="" there="" are="" no="" other="" agency="" requirements="" for="" the="" material,="" the="" material="" shall="" be="" disposed="" of="" in="" accordance="" with="" the="" nrc="" or="" applicable="" state="" licenses,="" and="" applicable="" federal="" and="" agency="" regulations.="" 45.304-8="" waiver="" of="" screening="" requirements.="" agency="" heads="" or="" their="" designees="" may="" waive="" agency="" screening="" requirements="" when="" it="" is="" clearly="" in="" the="" government's="" interests="" to="" do="" so.="" when="" circumstances="" suggest="" a="" waiver="" of="" gsa="" screening="" requirements="" would="" be="" in="" the="" government's="" interests,="" submit="" the="" agency's="" justification="" for="" the="" waiver="" to="" the="" administrator,="" general="" services="" administration,="" at="" least="" 10="" days="" prior="" to="" implementing="" the="" waiver.="" the="" waiver="" shall="" be="" effective="" unless="" the="" gsa="" takes="" exception="" to="" the="" waiver="" request="" within="" the="" 10-day="" period.="" notify="" the="" contract="" administration="" office="" when="" implementing="" a="" waiver.="" 45.304-9="" interagency="" property="" transfer="" costs.="" agencies="" whose="" property="" is="" transferred="" to="" other="" agencies="" shall="" not="" be="" reimbursed="" for="" the="" property="" in="" any="" manner="" unless="" the="" circumstances="" of="" 41="" cfr="" 101-43.309-3="" apply.="" the="" agency="" receiving="" the="" property="" shall="" pay="" any="" transportation="" costs="" that="" are="" not="" the="" contractor's="" responsibility="" and="" any="" costs="" to="" pack,="" crate,="" or="" otherwise="" prepare="" the="" property="" for="" shipment.="" the="" contract="" administration="" office="" shall="" process="" appropriate="" contract="" modifications.="" to="" accelerate="" plant="" clearance,="" the="" receiving="" agency="" shall="" promptly="" furnish="" funding="" data="" and="" transfer="" or="" shipping="" documents="" to="" the="" contract="" administration="" office.="" 45.304-10="" sale="" of="" surplus="" government="" property.="" policy="" and="" procedures="" for="" such="" sales,="" except="" sales="" of="" department="" of="" defense="" property,="" are="" contained="" in="" the="" federal="" property="" management="" regulations="" (fpmr)="" 41="" cfr="" part="" 101-45.="" 45.304-11="" proceeds="" from="" sales.="" proceeds="" of="" any="" sale="" are="" to="" be="" credited="" to="" the="" treasury="" of="" the="" united="" states="" as="" miscellaneous="" receipts,="" except="" where="" the="" contract="" or="" any="" subcontract="" thereunder="" authorizes="" the="" proceeds="" to="" be="" credited="" to="" the="" price="" or="" cost="" of="" the="" work="" (40="" u.s.c.="" 485(a)="" and="" (e)).="" 45.304-12="" u.s.="" government="" property="" in="" foreign="" countries.="" sell="" or="" dispose="" of="" such="" property="" in="" accordance="" with="" agency="" procedures="" (see="" 40="" u.s.c.="" 511-514).="" 45.304-13="" destruction="" or="" abandonment.="" (a)="" surplus="" property="" may="" be="" destroyed="" or="" abandoned="" only="" after="" a="" reasonable="" effort="" has="" been="" made="" to="" dispose="" of="" it="" by="" other="" authorized="" methods.="" before="" authorizing="" destruction="" or="" abandonment,="" the="" plant="" clearance="" officer="" shall="" determine="" in="" writing="" that--="" (1)="" the="" property="" has="" no="" commercial="" value="" and="" no="" value="" to="" the="" government;="" or="" (2)="" the="" estimated="" cost="" to="" sell="" the="" property="" is="" greater="" than="" the="" probable="" sale="" proceeds;="" and="" (3)="" the="" property="" does="" not="" constitute="" a="" danger="" to="" public="" health,="" safety,="" or="" welfare.="" (b)="" surplus="" property="" for="" which="" a="" determination="" has="" been="" made="" under="" 45.304-13="" may="" be="" donated="" to="" public="" bodies="" in="" lieu="" of="" abandonment="" or="" destruction.="" all="" costs="" incident="" to="" donation="" shall="" be="" borne="" by="" the="" donee.="" (c)="" agencies="" shall="" not="" abandon="" hazardous="" government="" property="" on="" a="" contractor's="" premises="" without="" the="" contractor's="" written="" consent.="" subpart="" 45.4--property="" management="" contracts="" 45.401="" contracting="" for="" property="" management.="" 45.401-1="" general.="" (a)="" contracts="" for="" the="" storage="" of="" government="" property,="" the="" operation="" or="" management="" of="" real="" property="" owned="" or="" leased="" by="" the="" government,="" the="" operation="" or="" management="" of="" a="" government="" activity="" for="" the="" government="" (e.g.,="" warehouses,="" libraries,="" stock="" rooms,="" computer="" centers,="" etc.,="" that="" are="" located="" on="" real="" property="" owned="" or="" leased="" by="" the="" government)="" or="" [[page="" 30198]]="" the="" preservation="" of="" an="" essential="" industrial="" capability,="" are="" contracts="" for="" services.="" (b)="" follow="" the="" guidelines="" in="" parts="" 37="" and="" 45="" to="" acquire="" such="" services.="" except="" as="" provided="" in="" 45.401-3,="" in="" addition="" to="" the="" clauses="" prescribed="" for="" use="" with="" part="" 37,="" include="" either="" 52.245-1="" or="" 52.245-4="" and="" 52.245-3="" in="" solicitations="" and="" contracts="" for="" such="" services.="" see="" 45.102="" for="" applicability="" criteria="" and="" other="" provisions="" or="" clauses="" that="" might="" be="" required.="" as="" required="" by="" 52.245-1="" or="" 52.245-4,="" all="" government="" property="" to="" be="" furnished="" for="" performance="" of="" such="" contracts="" must="" be="" identified="" in="" the="" contract.="" see="" 45.201="" for="" restrictions="" applicable="" to="" furnishing="" certain="" types="" of="" property.="" the="" contract="" must="" identify="" any="" constraints="" on="" the="" property's="" use,="" special="" handling="" or="" maintenance="" requirements,="" and="" applicable="" security="" considerations.="" see="" 45.401-3="" for="" property="" management="" contracts.="" (c)="" when="" a="" contractor="" will="" be="" required="" to="" maintain="" the="" government's="" property,="" solicitations="" shall="" require="" offerors="" to="" propose="" maintenance="" plans.="" contracting="" officers="" should="" consult="" with="" cognizant="" property="" administrators="" to="" assure="" that="" proposed="" maintenance="" plans="" are="" acceptable="" and="" conduct="" negotiations="" with="" offerors="" in="" the="" competitive="" range="" when="" necessary.="" at="" the="" minimum,="" the="" maintenance="" to="" be="" performed="" must="" be="" sufficient="" to="" assure="" the="" property's="" suitability="" for="" intended="" use="" or,="" under="" property="" management="" contracts,="" assure="" that="" property="" used="" by="" the="" contractor="" is="" returned="" to="" the="" government="" in="" the="" same="" or="" better="" condition="" than="" the="" property's="" condition="" prior="" to="" contractor="" use,="" less="" normal="" wear="" and="" tear.="" include="" an="" offeror's="" acceptable="" plan,="" or="" negotiated="" modification="" thereof,="" in="" the="" contract="" performance="" requirements.="" 45.401-2="" contracts="" to="" preserve="" or="" maintain="" an="" essential="" industrial="" capability.="" follow="" the="" guidelines="" in="" 45.401-1.="" if="" the="" contractor="" is="" authorized="" to="" use="" property="" that="" is="" part="" of="" an="" essential="" industrial="" capability="" for="" performance="" of--="" (a)="" a="" government="" contract="" at="" another="" location,="" transfer="" the="" property's="" accountability="" to="" that="" contract.="" (b)="" a="" nonfederal="" contract,="" charge="" an="" appropriate="" rent.="" 45.401-3="" property="" management="" contracts.="" (a)="" contracting="" officers="" may="" consider="" awarding="" a="" contract="" to="" consolidate="" management="" of="" and="" accountability="" for="" government-owned="" or="" -="" leased="" real="" or="" personal="" property="" at="" a="" specified="" location="" provided="" the="" potential="" property="" management="" contractor="" also="" is="" performing="" simultaneously="" multiple="" government="" supply="" or="" service="" contracts="" at="" the="" specified="" location.="" the="" term="" ``specified="" location''="" includes="" government-owned="" contractor="" operated="" activities="" and="" essential="" industrial="" facilities="" maintained="" or="" operated="" by="" a="" contractor="" for="" the="" government.="" generally,="" the="" contractor="" performs="" the="" property="" management="" services="" required="" by="" the="" clauses="" at="" 52.245-3="" and="" 52.245-6="" at="" no="" direct="" cost="" to="" the="" government.="" in="" consideration="" of="" that="" performance,="" the="" contractor="" is="" authorized="" to="" use,="" on="" a="" rent-free="" basis="" and="" without="" further="" approval,="" the="" property="" accountable="" under="" the="" property="" management="" contract="" in="" performance="" of="" the="" contracting="" agency's="" contracts="" and="" may="" use="" such="" property="" in="" performance="" of="" other="" government="" contracts="" if="" authorized="" by="" the="" contracting="" officer.="" during="" such="" use,="" the="" property="" remains="" accountable="" under="" the="" property="" management="" contract.="" (b)="" a="" property="" management="" contract="" must="" clearly="" identify="" the="" property="" accountable="" under="" the="" contract,="" the="" specific="" location="" at="" which="" the="" contractor="" is="" authorized="" to="" use="" the="" property,="" and="" include="" the="" clauses="" at="" 52.245-6="" (in="" lieu="" of="" the="" clauses="" at="" 52.245-1="" or="" 52.245-4),="" 52.245-3,="" and="" any="" applicable="" clauses="" prescribed="" for="" use="" when="" contracting="" under="" part="" 37.="" (c)="" charge="" an="" appropriate="" rental="" using="" the="" guidelines="" in="" 52.245-5="" when="" property="" accountable="" under="" property="" management="" contracts="" is="" authorized="" for="" commercial="" use.="" part="" 49--termination="" of="" contracts="" 25.="" section="" 49.001="" is="" amended="" by="" revising="" the="" definition="" ``termination="" inventory''="" to="" read="" as="" follows:="" 49.001="" definitions.="" *="" *="" *="" *="" *="" termination="" inventory="" includes="" parts,="" work="" in="" process,="" completed="" work,="" supplies,="" other="" material="" produced="" or="" acquired="" for="" the="" work="" terminated,="" completed="" or="" partially="" completed="" plans,="" drawings,="" or="" information,="" property="" that="" would="" have="" been="" delivered="" to="" the="" government="" if="" the="" contract="" had="" been="" completed,="" and="" government="" furnished="" property.="" *="" *="" *="" *="" *="" 49.105="" [amended]="" 26.="" section="" 49.105="" is="" amended="" in="" the="" introductory="" text="" of="" paragraph="" (b)(4)="" by="" removing="" ``(see="" subpart="" 45.6)''.="" 27.="" section="" 49.108-3="" is="" amended="" by="" revising="" paragraph="" (b)(1)="" to="" read="" as="" follows:="" 49.108-3="" settlement="" procedure.="" *="" *="" *="" *="" *="" (b)="" *="" *="" *="" (1)="" all="" subcontractor="" termination="" inventory="" be="" disposed="" of="" and="" accounted="" for="" in="" accordance="" with="" part="" 45="" or,="" for="" contracts="" awarded="" on="" or="" after="" (tbd),="" the="" disposal="" procedures="" in="" 52.245-4;="" and="" *="" *="" *="" *="" *="" 28.="" section="" 49.108-4="" is="" amended="" by="" revising="" paragraphs="" (a)(1)(ii)="" and="" (b)="" to="" read="" as="" follows:="" 49.108-4="" authorization="" for="" subcontract="" settlements="" without="" approval="" or="" ratification.="" (ii)="" any="" termination="" inventory="" included="" in="" determining="" the="" amount="" of="" the="" settlement="" will="" be="" disposed="" of="" as="" directed="" by="" the="" prime="" contractor,="" except="" that="" the="" disposition="" of="" the="" inventory="" shall="" not="" be="" subject="" to:="" (a)="" review="" by="" the="" tco="" under="" 49.108-3(c),="" or="" (b)="" the="" screening="" requirements="" in="" 45.304;="" and="" *="" *="" *="" *="" *="" (b)="" section="" 45.304="" shall="" apply="" to="" disposal="" of="" completed="" end="" items="" allocable="" to="" the="" terminated="" subcontract.="" however,="" these="" items="" may="" be="" disposed="" of="" without="" review="" by="" the="" tco="" under="" 49.108-3,="" and="" without="" screening="" under="" 45.304,="" if="" the="" total="" amount="" (at="" the="" subcontract="" price)="" when="" added="" to="" the="" amount="" of="" the="" settlement="" does="" not="" exceed="" the="" amount="" authorized="" under="" this="" subsection.="" *="" *="" *="" *="" *="" 49.202="" [amended]="" 29.="" section="" 49.202="" is="" amended="" in="" paragraph="" (b)(3)(iii)="" by="" removing="" the="" word="" ``facilities''="" and="" inserting="" ``property''="" in="" its="" place.="" 49.204="" [amended]="" 30.="" section="" 49.204="" is="" amended="" in="" paragraph="" (a)="" by="" removing="" the="" words="" ``materials="" sold="" that="" have''="" and="" inserting="" in="" their="" place="" ``property="" sold="" that="" has''.="" 31.="" section="" 49.206-3="" is="" revised="" to="" read="" as="" follows:="" 49.206-3="" submission="" of="" inventory="" schedules.="" subject="" to="" the="" terms="" of="" the="" termination="" clause,="" and="" whenever="" termination="" inventory="" is="" involved,="" the="" contractor="" shall="" submit="" complete="" inventory="" disposal="" schedules,="" to="" the="" tco,="" reflecting="" inventory="" that="" is="" allocable="" to="" the="" terminated="" portion="" of="" the="" contract.="" the="" inventory="" disposal="" schedules="" shall="" be="" submitted="" within="" 20="" days="" from="" the="" effective="" date="" of="" termination="" unless="" otherwise="" extended="" by="" the="" tco="" based="" on="" a="" written="" justification="" to="" support="" the="" extension.="" the="" inventory="" schedules="" shall="" be="" prepared="" on="" standard="" form="" 1428="" (see="" 45.302).="" [[page="" 30199]]="" 32.="" section="" 49.303-2="" is="" revised="" to="" read="" as="" follows:="" 49.303-2="" submission="" of="" inventory="" schedules.="" subject="" to="" the="" terms="" of="" the="" termination="" clause,="" and="" whenever="" termination="" inventory="" is="" involved,="" the="" contractor="" shall="" submit="" complete="" inventory="" disposal="" schedules,="" to="" the="" tco,="" reflecting="" inventory="" that="" is="" allocable="" to="" the="" terminated="" portion="" of="" the="" contract.="" the="" inventory="" schedules="" shall="" be="" submitted="" within="" 120="" days="" from="" the="" effective="" date="" of="" termination="" unless="" otherwise="" extended="" by="" the="" tco="" based="" on="" a="" written="" justification="" to="" support="" the="" extension.="" the="" inventory="" disposal="" schedules="" shall="" be="" prepared="" on="" standard="" form="" 1428="" (see="" 45.302).="" 33.="" section="" 49.505="" is="" amended="" by="" revising="" paragraphs="" (a)="" and="" (c),="" and="" the="" last="" sentence="" of="" paragraph="" (d)="" to="" read="" as="" follows:="" 49.505="" other="" termination="" clauses.="" (a)="" property="" management.="" the="" contracting="" officer="" shall="" insert="" the="" clause="" at="" 52.249-11,="" termination="" of="" use--property="" management="" contracts,="" in="" property="" management="" contracts.="" *="" *="" *="" *="" *="" (c)="" failure="" to="" perform.="" the="" contracting="" officer="" shall="" insert="" the="" clause="" at="" 52.249-13,="" failure="" to="" perform,="" in="" property="" management="" contracts,="" except="" such="" contracts="" with="" nonprofit="" educational="" institutions.="" (d)="" *="" *="" *="" the="" contracting="" officer="" shall="" also="" insert="" the="" clause="" in="" time-and-material="" contracts,="" labor-hour="" contracts,="" and="" property="" management="" contracts.="" *="" *="" *="" *="" *="" 34.="" section="" 49.602-2="" is="" revised="" to="" read="" as="" follows:="" 49.602-2="" inventory="" forms.="" standard="" forms="" 1428,="" inventory="" disposal="" schedule,="" and="" 1429,="" inventory="" disposal="" schedule--continuation="" sheet,="" shall="" be="" used="" to="" support="" settlement="" proposals="" submitted="" on="" the="" forms="" specified="" in="" 49.602-1(a),="" (b),="" and="" (c)="" (see="" 45.302).="" part="" 51--use="" of="" government="" sources="" by="" contractors="" 35.="" section="" 51.106="" is="" revised="" to="" read="" as="" follows:="" 51.106="" title.="" (a)="" title="" to="" all="" property="" acquired="" by="" the="" contractor="" under="" the="" contracting="" officer's="" authorization="" shall="" vest="" in="" the="" parties="" as="" provided="" in="" the="" contract.="" (b)="" when="" contracting="" with="" educational="" institutions="" and="" the="" government="" property="" clause="" at="" 52.245-4,="" alternate="" i="" is="" used,="" agencies="" may="" provide="" higher="" thresholds,="" if="" appropriate.="" 36.="" section="" 51.107="" is="" revised="" to="" read="" as="" follows:="" 51.107="" contract="" clause.="" the="" contracting="" officer="" shall="" insert="" the="" clause="" at="" 52.251-1,="" government="" supply="" sources,="" in="" solicitations="" and="" contracts="" when="" the="" contracting="" officer="" may="" authorize="" the="" contractor="" to="" acquire="" supplies="" from="" a="" government="" supply="" source.="" 51.200="" [amended]="" 37.="" section="" 51.200="" is="" amended="" at="" the="" end="" of="" the="" second="" sentence="" by="" removing="" ``(see="" 45.304).''="" part="" 52--solicitation="" provisions="" and="" contract="" clauses="" 38.="" section="" 52.216-7="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause;="" in="" paragraph="" (b)(3)="" by="" revising="" ``paragraph="" (g)''="" and="" ``paragraph="" (d)''="" to="" read="" ``paragraph="" (h)''="" and="" ``paragraph="" (e)'',="" respectively;="" redesignating="" paragraphs="" (c)="" through="" (h)="" as="" (d)="" through="" (i)="" respectively;="" adding="" a="" new="" paragraph="" (c);="" and="" in="" newly="" designated="" paragraph="" (i)(1)="" by="" revising="" ``paragraph="" (d)(4)''="" to="" read="" ``paragraph="" (e)(4)''.="" the="" revised="" text="" reads="" as="" follows:="" 52.216-7="" allowable="" cost="" and="" payment.="" *="" *="" *="" *="" *="" allowable="" cost="" and="" payment="" (date)="" *="" *="" *="" *="" *="" (c)="" title.="" (1)="" title="" to="" property="" acquired="" or="" produced="" by="" the="" contractor="" for="" performance="" of="" this="" contract,="" the="" costs="" of="" which="" are="" allocable="" to="" this="" contract="" as="" direct="" costs,="" shall="" vest="" in="" the="" government.="" for="" property="" acquired="" or="" produced="" prior="" to="" execution="" of="" this="" contract,="" vestiture="" occurs="" upon="" execution="" of="" the="" contract.="" otherwise,="" vestiture="" occurs="" when="" the="" property="" is="" or="" should="" have="" been="" allocable="" or="" properly="" chargeable="" to="" this="" contract="" under="" sound="" and="" generally="" accepted="" accounting="" principles="" and="" practices.="" (2)="" property="" to="" which="" the="" government="" has="" obtained="" title="" solely="" under="" this="" clause="" is="" not="" ``government="" furnished="" property.''="" *="" *="" *="" *="" *="" 52.216-11="" [amended]="" 39.="" section="" 52.216-11="" is="" amended="" in="" the="" first="" sentence="" of="" the="" introductory="" paragraph="" of="" the="" section="" by="" removing="" ``or="" a="" facilities="" contract.''="" 52.216-12="" [amended]="" 40.="" section="" 52.216-12="" is="" amended="" in="" the="" first="" sentence="" of="" the="" introductory="" paragraph="" of="" the="" section="" by="" removing="" ``(other="" than="" a="" facilities="" contract)''.="" 52.216-13="" and="" 52.216-14="" [removed="" and="" reserved]="" 41.="" sections="" 52.216-13="" and="" 52.216-14="" are="" removed="" and="" reserved.="" 52.222-17="" labor="" standards="" for="" construction="" work-property="" management="" contracts.="" 42.="" section="" 52.222-17="" section="" and="" clause="" headings="" are="" revised="" to="" read="" as="" set="" forth="" above;="" and="" the="" date="" of="" the="" clause="" is="" revised.="" 43.="" section="" 52.232-16="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause="" and="" paragraphs="" (d),="" (e),="" and="" (h)="" of="" the="" clause="" to="" read="" as="" follows:="" 52.232-16="" progress="" payments.="" *="" *="" *="" *="" *="" progress="" payments="" (date)="" *="" *="" *="" *="" *="" (d)="" title.="" (1)="" title="" to="" property="" acquired="" or="" produced="" by="" the="" contractor="" for="" performance="" of="" this="" contract,="" the="" costs="" of="" which="" are="" allocable="" to="" this="" contract="" as="" direct="" costs,="" shall="" vest="" in="" the="" government.="" for="" property="" acquired="" or="" produced="" prior="" to="" execution="" of="" this="" contract,="" vestiture="" occurs="" upon="" execution="" of="" the="" contract.="" otherwise,="" vestiture="" occurs="" when="" the="" property="" is="" or="" should="" have="" been="" allocable="" or="" properly="" chargeable="" to="" this="" contract="" under="" sound="" and="" generally="" accepted="" accounting="" principles="" and="" practices.="" except="" as="" provided="" in="" 52.245-2,="" upon="" liquidation="" of="" all="" progress="" payments,="" the="" contractor="" shall="" have="" title="" to="" property="" acquired="" or="" fabricated="" for="" this="" contract="" that="" is="" not="" required="" to="" be="" delivered="" to="" the="" government="" (2)="" property="" to="" which="" the="" government="" has="" obtained="" title="" solely="" under="" this="" clause="" is="" not="" ``government="" furnished="" property.''="" (3)="" except="" for="" government="" furnished="" property,="" the="" contractor="" may="" sell="" scrap="" resulting="" from="" performance="" of="" this="" contract="" without="" requesting="" the="" contracting="" officer's="" approval.="" the="" proceeds="" shall="" be="" credited="" against="" the="" costs="" of="" performance.="" (4)="" the="" contractor="" shall="" not="" acquire="" for="" its="" own="" use="" property="" to="" which="" title="" is="" vested="" in="" the="" government="" under="" this="" clause="" or,="" except="" as="" provided="" in="" paragraph="" (3)="" of="" this="" clause,="" dispose="" of="" such="" property="" unless="" authorized="" to="" do="" so="" by="" the="" contracting="" officer.="" the="" contractor="" shall="" (i)="" exclude="" the="" allocable="" costs="" of="" the="" property="" from="" the="" costs="" of="" contract="" performance,="" and="" (ii)="" repay="" to="" the="" government="" any="" amount="" of="" unliquidated="" progress="" payments="" allocable="" to="" the="" property.="" (e)="" risk="" of="" loss.="" the="" contractor="" is="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" property="" acquired="" or="" produced="" for="" performance="" of="" this="" contract="" unless="" the="" government="" has="" expressly="" assumed="" such="" risks,="" taken="" title="" to="" the="" property="" under="" 52.245-2,="" or="" accepted="" the="" property.="" the="" contractor="" shall="" repay="" the="" government="" an="" amount="" equal="" to="" the="" unliquidated="" progress="" payments="" that="" are="" based="" on="" costs="" allocable="" to="" property="" that="" is="" damaged,="" lost,="" stolen,="" or="" destroyed.="" *="" *="" *="" *="" *="" (h)="" special="" terms="" regarding="" default.="" if="" this="" contract="" is="" terminated="" under="" the="" default="" clause--="" (1)="" the="" contractor="" shall,="" on="" demand,="" repay="" to="" the="" government="" the="" amount="" of="" unliquidated="" progress="" payments.="" (2)="" upon="" full="" liquidation="" of="" progress="" payments,="" the="" contractor="" shall="" have="" title="" to="" [[page="" 30200]]="" all="" property="" acquired="" or="" fabricated="" for="" performance="" of="" this="" contract="" except="" such="" property="" required="" to="" be="" delivered="" to="" the="" government="" under="" the="" default="" clause="" or="" property="" to="" which="" the="" government="" has="" taken="" title="" under="" 52.245-2.="" *="" *="" *="" *="" *="" 52.232-21="" [removed="" and="" reserved]="" 44.="" section="" 52.232-21="" is="" removed="" and="" reserved.="" 45.="" section="" 52.232-32="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause="" and="" paragraphs="" (f),="" (g),="" and="" (j)="" to="" read="" as="" follows:="" 52.232-32="" performance-based="" payments.="" *="" *="" *="" *="" *="" performance-based="" payments="" (date)="" (f)="" title.="" (1)="" title="" to="" property="" acquired="" or="" produced="" by="" the="" contractor="" for="" performance="" of="" this="" contract,="" the="" costs="" of="" which="" are="" allocable="" to="" this="" contract="" as="" direct="" costs,="" shall="" vest="" in="" the="" government.="" for="" property="" acquired="" or="" produced="" prior="" to="" execution="" of="" this="" contract,="" vestiture="" occurs="" upon="" execution="" of="" the="" contract.="" otherwise,="" vestiture="" occurs="" when="" the="" property="" is="" or="" should="" have="" been="" allocable="" or="" properly="" chargeable="" to="" this="" contract="" under="" sound="" and="" generally="" accepted="" accounting="" principles="" and="" practices.="" except="" as="" provided="" in="" 52.245-2,="" upon="" liquidation="" of="" all="" progress="" payments="" the="" contractor="" shall="" have="" title="" to="" property="" acquired="" or="" fabricated="" for="" this="" contract="" that="" is="" not="" required="" to="" be="" delivered="" to="" the="" government.="" (2)="" property="" to="" which="" the="" government="" has="" obtained="" title="" solely="" under="" this="" clause="" is="" not="" ``government="" furnished="" property.''="" (3)="" except="" for="" government="" furnished="" property,="" the="" contractor="" may="" sell="" scrap="" resulting="" from="" performance="" of="" this="" contract="" without="" requesting="" the="" contracting="" officer's="" approval.="" the="" proceeds="" shall="" be="" credited="" against="" the="" costs="" of="" performance.="" (4)="" the="" contractor="" shall="" not="" acquire="" for="" its="" own="" use="" property="" to="" which="" title="" is="" vested="" in="" the="" government="" under="" this="" clause="" or,="" except="" as="" provided="" in="" paragraph="" (3)="" of="" this="" clause,="" dispose="" of="" such="" property="" unless="" authorized="" to="" do="" so="" by="" the="" contracting="" officer.="" the="" contractor="" shall="" (i)="" exclude="" the="" allocable="" costs="" of="" the="" property="" from="" the="" costs="" of="" contract="" performance,="" and="" (ii)="" repay="" to="" the="" government="" any="" amount="" of="" unliquidated="" progress="" payments="" allocable="" to="" the="" property.="" (g)="" risk="" of="" loss.="" the="" contractor="" is="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" property="" acquired="" or="" produced="" for="" performance="" of="" this="" contract="" unless="" the="" government="" has="" expressly="" assumed="" such="" risks,="" taken="" title="" to="" the="" property="" under="" 52.245-2,="" or="" accepted="" the="" property.="" the="" contractor="" shall="" repay="" the="" government="" an="" amount="" equal="" to="" the="" unliquidated="" progress="" payments="" that="" are="" based="" on="" costs="" allocable="" to="" property="" that="" is="" damaged,="" lost,="" stolen,="" or="" destroyed.="" *="" *="" *="" *="" *="" (j)="" special="" terms="" regarding="" default.="" if="" this="" contract="" is="" terminated="" under="" the="" default="" clause--="" (1)="" the="" contractor="" shall,="" on="" demand,="" repay="" to="" the="" government="" the="" amount="" of="" unliquidated="" progress="" payments.="" (2)="" upon="" full="" liquidation="" of="" progress="" payments,="" the="" contractor="" shall="" have="" title="" to="" all="" property="" acquired="" or="" fabricated="" for="" performance="" of="" this="" contract="" except="" such="" property="" required="" to="" be="" delivered="" to="" the="" government="" under="" the="" default="" clause="" or="" property="" to="" which="" the="" government="" has="" taken="" title="" under="" 52.245-2.="" *="" *="" *="" *="" *="" 52.243-2="" [amended]="" 46.="" section="" 52.243-2="" is="" amended="" by="" removing="" alternate="" iv="" and="" renumbering="" alternate="" v="" as="" alternate="" iv="" of="" the="" clause.="" 47.="" section="" 52.243-4="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause="" and="" paragraph="" (a)(3)="" of="" the="" clause="" to="" read="" as="" follows:="" 52.243-4="" changes.="" *="" *="" *="" *="" *="" changes="" (date)="" (a)="" *="" *="" *="" (3)="" in="" the="" government="" property="" or="" services="" furnished="" for="" contract="" performance;="" or="" *="" *="" *="" *="" *="" 52.244-2="" [amended]="" 47-a.="" section="" 52.244-2="" is="" amended="" by="" removing="" paragraph="" (a)(4)="" of="" the="" clause.="" 48.="" sections="" 52.245-1="" through="" 52.245-7="" are="" revised="" to="" read="" as="" follows:="" 52.245-1="" government="" furnished="" property="" (fixed-price="" and="" labor-hour="" contracts).="" as="" prescribed="" in="" 45.102(a),="" insert="" the="" following="" clause:="" government="" furnished="" property="" (fixed-price="" and="" labor-hour="" contracts)="" (date)="" (a)="" definitions.="" the="" ``government="" property="" control''="" clause="" of="" this="" contract,="" 52.245-3,="" defines="" certain="" terms="" used="" in="" section="" 52.245.="" when="" a="" term="" defined="" in="" 52.245-3="" is="" used="" in="" this="" clause,="" it="" has="" the="" same="" meaning="" as="" when="" used="" in="" 52.245-3.="" (b)="" property="" furnished="" for="" performance="" of="" this="" contract.="" (1)="" the="" government="" furnished="" property="" identified="" in="" this="" contract="" may="" be="" used="" for="" performance="" of="" the="" contract="" on="" a="" rent-free="" basis.="" the="" contractor="" shall="" not="" use="" such="" property="" on="" any="" other="" government="" contracts="" or="" for="" commercial="" purposes="" without="" the="" contracting="" officer's="" prior="" approval.="" unless="" otherwise="" permitted="" by="" law,="" commercial="" use="" shall="" be="" on="" a="" rental="" basis.="" the="" terms="" and="" conditions="" of="" the="" ``rental="" charges="" for="" commercial="" use''="" clause="" of="" this="" contract="" shall="" apply="" to="" each="" rental.="" (2)="" the="" contractor="" shall="" not="" improve="" or="" make="" structural="" alterations="" to="" real="" property="" owned="" or="" leased="" by="" the="" government="" and="" made="" available="" for="" performance="" of="" this="" contract="" unless="" expressly="" authorized="" to="" do="" so="" in="" writing="" by="" the="" contracting="" officer.="" title="" to="" such="" improvements="" or="" alterations="" shall="" vest="" in="" the="" government="" if="" the="" property="" is="" accountable="" under="" this="" contract="" or="" will="" be="" determined="" by="" the="" terms="" of="" the="" contract="" under="" which="" the="" real="" property="" is="" accountable.="" (3)="" the="" government="" retains="" title="" to="" government="" furnished="" property="" including="" government="" furnished="" property="" that="" is="" incorporated="" into="" or="" attached="" to="" any="" property="" it="" does="" not="" own.="" government="" furnished="" property="" does="" not="" become="" a="" fixture="" or="" lose="" its="" identity="" as="" personal="" property="" by="" being="" attached="" to="" real="" property.="" (4)="" the="" government="" shall,="" when="" requested="" by="" the="" contractor,="" provide="" information="" reasonably="" required="" for="" the="" property's="" intended="" use="" to="" the="" extent="" the="" government="" has="" the="" right="" to="" release="" or="" disclose="" the="" information.="" (5)="" if="" the="" contractor="" commingles="" contractor="" acquired="" or="" fabricated="" material="" with="" government="" furnished="" material,="" the="" provisions="" of="" paragraph="" (c)="" of="" this="" clause="" regarding="" suitability="" for="" intended="" use="" shall="" not="" apply="" to="" the="" commingled="" government="" furnished="" material.="" notwithstanding="" any="" other="" provision="" of="" this="" contract,="" the="" contractor="" shall="" be="" responsible="" for="" any="" failure="" to="" comply="" with="" contract="" requirements="" attributable="" to="" material="" that="" was="" commingled.="" (c)="" suitability="" for="" intended="" use.="" the="" contract="" delivery="" or="" performance="" dates="" are="" based="" upon="" the="" expectation="" that="" government="" furnished="" property="" will="" be="" suitable="" for="" its="" intended="" use,="" except="" property="" furnished="" ``as="" is''="" (see="" paragraph="" (d)),="" and="" delivered="" to="" the="" contractor="" at="" the="" times="" stated="" in="" the="" contract="" or,="" if="" not="" so="" stated,="" in="" sufficient="" time="" to="" enable="" the="" contractor="" to="" meet="" the="" contract's="" delivery="" or="" performance="" dates.="" (1)="" the="" contractor="" shall="" notify="" the="" contracting="" officer="" promptly="" following="" receipt="" of="" government="" furnished="" property="" that="" is="" not="" suitable="" for="" its="" intended="" use="" and="" take="" corrective="" action="" or="" dispose="" of="" the="" property="" as="" directed="" by="" the="" contracting="" officer.="" the="" contract="" shall="" be="" equitably="" adjusted="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" (2)="" the="" contractor="" may="" request="" an="" equitable="" adjustment="" in="" price,="" schedule,="" or="" both="" when="" government="" furnished="" property="" is="" not="" delivered="" to="" the="" contractor="" by="" the="" required="" time="" and="" such="" untimely="" delivery="" has="" affected="" contract="" performance.="" any="" adjustment="" shall="" be="" made="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" (d)="" property="" furnished="" as="" is.="" (1)="" offerors="" and="" the="" contractor="" are="" responsible="" for="" assuring="" that="" government="" property="" made="" available="" on="" an="" ``as="" is''="" basis="" is="" suitable="" for="" the="" offerors'="" or="" contractor's="" purposes.="" such="" property="" is="" furnished="" f.o.b.="" at="" the="" location="" specified="" in="" the="" solicitation="" or="" contract.="" the="" cost="" of="" transporting,="" installing,="" modifying,="" repairing,="" or="" otherwise="" making="" such="" property="" suitable="" for="" the="" contractor's="" intended="" use="" shall="" be="" at="" the="" contractor's="" expense.="" modifications="" to="" property="" furnished="" ``as="" is''="" require="" the="" contracting="" officer's="" prior="" written="" approval.="" (2)="" special="" tooling="" or="" special="" test="" equipment="" is="" furnished="" ``as="" is''="" for="" performance="" of="" this="" contract="" if="" the="" contractor="" acquired="" or="" fabricated="" and="" the="" government="" took="" title="" to="" such="" tooling="" or="" test="" equipment="" under="" this="" or="" a="" prior="" contract.="" (3)="" the="" government="" makes="" no="" warranty="" whatsoever="" with="" respect="" to="" property="" furnished="" ``as="" is''="" except="" that="" the="" property="" will="" be="" in="" the="" same="" condition="" when="" placed="" [[page="" 30201]]="" at="" the="" specified="" f.o.b.="" location="" as="" when="" inspected="" by="" the="" contractor="" or,="" if="" not="" inspected="" by="" the="" contractor,="" as="" of="" the="" last="" date="" identified="" in="" the="" solicitation="" or="" contract="" for="" contractor="" inspection.="" the="" contractor="" is="" responsible="" for="" verifying="" that="" the="" property's="" condition="" has="" not="" changed="" during="" that="" period.="" if="" the="" contractor="" determines="" the="" property's="" condition="" has="" changed="" and="" such="" change="" will="" adversely="" affect="" the="" contractor,="" the="" contractor="" shall="" immediately="" notify="" the="" contracting="" officer="" and="" identify="" the="" changed="" condition.="" if="" the="" contracting="" officer="" concurs="" that="" the="" property's="" condition="" has="" changed,="" he="" or="" she="" may="" restore="" the="" property="" or="" substitute="" other="" government="" property="" at="" no="" change="" in="" contract="" price="" (or="" target="" price="" or="" ceiling="" amount);="" permit="" the="" contractor="" to="" restore="" the="" property="" subject="" to="" an="" equitable="" adjustment;="" or,="" decline="" to="" provide="" the="" property="" subject="" to="" an="" equitable="" adjustment="" in="" price,="" schedule,="" or="" both.="" the="" foregoing="" provisions="" for="" adjustment="" are="" the="" exclusive="" remedies="" available="" to="" the="" contractor.="" the="" government="" has="" no="" liability="" for="" changes="" in="" the="" property's="" condition="" discovered="" after="" removal="" from="" the="" specified="" f.o.b.="" location.="" (4)="" repairs="" to="" or="" modifications="" of="" property="" furnished="" ``as="" is''="" do="" not="" affect="" the="" government's="" title="" to="" such="" property.="" (e)="" changes="" in="" government="" furnished="" property.="" (1)="" the="" contracting="" officer="" may="" increase,="" decrease,="" or="" substitute="" other="" government="" property="" for="" the="" property="" furnished="" or="" to="" be="" furnished="" for="" performance="" of="" this="" contract="" or="" require="" use="" of="" government="" furnished="" property="" in="" lieu="" of="" contractor="" property.="" (2)="" except="" as="" provided="" in="" paragraph="" (e)(4),="" any="" increase="" in="" the="" amount="" of="" property="" furnished="" for="" performance="" of="" this="" contract="" shall="" result="" in="" an="" equitable="" reduction="" in="" contract="" price="" and="" appropriate="" adjustment="" of="" the="" contract="" delivery="" or="" performance="" dates.="" (3)="" the="" contractor="" may="" request="" an="" equitable="" adjustment="" in="" contract="" price="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause="" for="" a="" decrease="" in="" or="" substitution="" for="" the="" property="" identified="" in="" the="" contract="" or="" withdrawal="" of="" authority="" to="" use="" property="" accountable="" under="" another="" contract="" in="" performance="" of="" this="" contract,="" provided="" such="" decrease,="" substitution,="" or="" withdrawal="" increases="" the="" costs="" of="" contract="" performance.="" (4)="" if="" the="" contracting="" officer="" directs="" the="" contractor="" to="" use="" government="" furnished="" property="" in="" lieu="" of="" contractor="" property="" in="" performance="" of="" this="" contract,="" any="" adjustment="" to="" the="" contract="" price="" or="" terms="" resulting="" from="" such="" direction="" shall="" be="" made="" in="" accordance="" with="" the="" ``changes''="" clause="" of="" this="" contract.="" (f)="" risk="" of="" loss.="" (1)="" except="" as="" provided="" in="" paragraph="" (f)(3),="" the="" contractor="" is="" liable="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property="" accountable="" under="" this="" contract.="" (2)="" contractor="" responsible="" repairs="" to,="" or="" replacements="" of,="" government="" furnished="" property="" shall="" be="" accomplished="" at="" no="" change="" in="" contract="" price="" (or="" target="" price="" or="" ceiling="" amount).="" (3)="" the="" contractor="" is="" not="" liable="" for--="" (i)="" government="" furnished="" property="" properly="" consumed="" in="" performing="" this="" contract;="" or="" (ii)="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property="" when="" the="" contractor="" is="" providing="" services="" performed="" entirely="" on="" real="" property="" owned="" or="" leased="" by="" the="" government="" and="" the="" contractor="" does="" not="" control="" the="" use="" of,="" or="" access="" to,="" the="" government="" furnished="" property.="" (4)="" except="" as="" provided="" in="" paragraph="" (f)(5)="" of="" this="" clause,="" the="" contractor="" shall="" notify="" the="" government's="" property="" administrator="" in="" writing="" promptly="" following="" the="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property.="" such="" notice="" shall="" identify--="" (i)="" lost,="" stolen,="" destroyed,="" or="" damaged="" government="" property="" by="" description,="" contract="" number,="" national="" stock="" number="" (if="" known),="" and="" either="" part="" number="" or="" identification="" number;="" (ii)="" the="" date="" a="" loss="" or="" theft="" was="" discovered="" or="" damage="" or="" destruction="" occurred="" and,="" if="" known,="" the="" circumstances;="" (iii)="" each="" property="" item's="" acquisition="" cost;="" (iv)="" the="" contracts="" affected;="" (v)="" all="" known="" interests="" in="" commingled="" property="" of="" which="" the="" government="" property="" is="" a="" part;="" and="" (vi)="" the="" insurance,="" if="" any,="" covering="" any="" part="" of="" or="" interest="" in="" such="" commingled="" property.="" (5)="" the="" contractor="" is="" not="" required="" to="" provide="" notice="" of="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" low="" value="" property="" which="" the="" contractor="" does="" not="" need="" for="" continued="" performance="" of="" this="" contract="" until="" contract="" completion="" or="" termination.="" such="" notice="" shall="" include="" the="" contract="" number="" and="" each="" such="" property="" item's="" acquisition="" cost,="" description,="" national="" stock="" number="" (if="" known),="" and="" either="" its="" part="" number="" or="" identification="" number.="" (6)="" the="" contractor="" shall="" take="" all="" reasonable="" action="" to="" protect="" damaged="" government="" furnished="" property="" from="" further="" damage="" and="" to="" physically="" separate="" such="" property="" from="" all="" other="" property.="" (7)="" the="" contracting="" officer="" may="" replace,="" direct="" the="" contractor="" to="" repair="" or="" replace,="" or="" direct="" the="" contractor="" to="" take="" other="" appropriate="" action="" regarding="" lost,="" stolen,="" damaged,="" or="" destroyed="" government="" furnished="" property="" for="" which="" the="" government="" has="" specifically="" assumed="" such="" risks="" in="" this="" contract.="" when="" lost,="" damaged,="" stolen,="" or="" destroyed="" government="" furnished="" property="" is="" replaced="" by="" the="" government="" or="" the="" contractor,="" the="" replacement="" property="" shall="" be="" entered="" into="" the="" property="" control="" system="" as="" a="" government="" furnished="" property="" item.="" any="" equitable="" adjustment="" incident="" to="" such="" direction="" shall="" be="" determined="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" (g)="" equitable="" adjustments.="" (1)="" equitable="" adjustments="" shall="" be="" the="" contractor's="" exclusive="" remedy="" for="" government="" actions="" under="" this="" clause="" and="" shall="" be="" made="" in="" accordance="" with="" the="" procedures="" of="" the="" changes="" clause.="" the="" government="" shall="" not="" be="" liable="" to="" suit="" for="" breach="" of="" contract="" for--="" (i)="" any="" delay="" in="" delivery="" of="" government="" furnished="" property;="" (ii)="" delivery="" of="" government="" furnished="" property="" in="" a="" condition="" not="" suitable="" for="" its="" intended="" use;="" (iii)="" an="" increase="" or="" decrease="" in,="" or="" substitution="" of,="" government="" furnished="" property;="" or="" (iv)="" failure="" to="" repair="" or="" replace="" government="" furnished="" property="" when="" the="" government="" is="" responsible="" for="" repair="" or="" replacement.="" (2)="" an="" equitable="" adjustment="" for="" government="" furnished="" property="" that="" is="" not="" in="" a="" condition="" suitable="" for="" intended="" use="" or="" the="" withdrawal="" or="" substitution="" of="" government="" furnished="" property="" may="" include="" an="" amount="" for="" the="" restoration="" and="" rehabilitation="" of="" the="" contractor's="" premises="" caused="" by="" such="" condition,="" withdrawal,="" or="" substitution.="" (h)="" maintenance="" responsibilities.="" (1)="" the="" contractor="" is="" responsible="" for="" the="" maintenance="" of="" government="" furnished="" property="" accountable="" under="" this="" contract,="" including="" such="" property="" stored="" at="" a="" contractor-managed="" site.="" the="" contractor="" shall="" perform="" all="" maintenance,="" including="" preventive="" maintenance,="" necessary="" to="" assure="" that="" government="" furnished="" property="" remains="" suitable="" for="" its="" intended="" use="" unless="" the="" contracting="" officer="" specifically="" relieves="" the="" contractor="" of="" its="" maintenance="" responsibility="" for="" a="" particular="" item="" or="" class="" of="" items.="" if="" routine="" and="" preventive="" maintenance="" are="" not="" sufficient="" to="" sustain="" a="" property="" item's="" suitability="" for="" intended="" use,="" the="" contractor="" shall="" notify="" the="" contracting="" officer="" promptly="" and="" request="" direction="" regarding="" repair="" or="" replacement.="" (2)="" the="" contractor="" shall="" notify="" promptly="" the="" government's="" property="" administrator="" of="" the="" need="" for="" any="" replacement="" of,="" or="" major="" repair="" or="" rehabilitation="" to,="" government="" furnished="" property="" discovered="" during="" its="" maintenance="" activities="" and="" shall="" not="" effect="" such="" repair,="" replacement,="" or="" rehabilitation="" unless="" authorized="" to="" do="" so="" by="" the="" contracting="" officer.="" (i)="" return="" of="" government="" furnished="" property.="" if="" this="" contract="" requires="" government="" furnished="" property="" to="" be="" returned="" directly="" to="" the="" government="" and="" not="" entered="" into="" the="" property="" disposal="" process--="" (1)="" the="" contractor="" shall="" notify="" the="" contract="" administration="" office="" of="" its="" intent="" to="" return="" such="" property="" at="" least="" 10="" working="" days="" prior="" to="" return.="" notices="" shall="" identify="" the="" contracts="" under="" which="" the="" items="" are="" accountable="" and="" provide="" each="" item's="" name,="" description,="" and="" national="" stock="" number,="" if="" known,="" or="" part="" number="" or="" identification="" number.="" (2)="" the="" property="" shall="" be="" returned="" to="" the="" government="" in="" a="" condition="" suitable="" for="" its="" intended="" use="" except--="" (i)="" lost,="" stolen,="" or="" destroyed="" property="" that="" the="" government="" has="" determined="" will="" not="" be="" replaced;="" (ii)="" damaged="" property="" that="" the="" government="" has="" determined="" will="" not="" be="" repaired;="" (iii)="" property="" consumed="" in="" performance="" of="" this="" contract;="" (iv)="" property="" attached="" to,="" incorporated="" into,="" or="" delivered="" with,="" a="" deliverable="" end="" item;="" or="" (v)="" property="" furnished="" as="" is="" shall="" be="" returned="" in="" equal="" or="" better="" condition="" than="" when="" furnished="" to="" the="" contractor.="" (j)="" disposal="" of="" government="" furnished="" property--(1)="" inventory="" disposal="" schedules.="" except="" as="" provided="" in="" paragraph="" (i)="" or="" (j)(2),="" the="" contractor="" shall="" identify="" government="" furnished="" property="" no="" longer="" required="" for="" performance="" of="" this="" contract="" using="" standard="" form="" 1428,="" inventory="" disposal="" schedule.="" unless="" the="" plant="" clearance="" officer="" has="" agreed="" to="" a="" different="" submission="" basis,="" or="" the="" contract="" requires="" inventory="" disposal="" [[page="" 30202]]="" schedules="" to="" be="" submitted="" electronically,="" the="" contractor="" shall="" prepare="" separate="" inventory="" disposal="" schedules="" for:="" special="" test="" equipment="" with="" general="" purpose="" components;="" special="" test="" equipment="" that="" does="" not="" contain="" general="" purpose="" components;="" printing="" equipment;="" automatic="" data="" processing="" equipment;="" nonnuclear="" hazardous="" materials;="" and,="" nuclear="" materials.="" property="" with="" the="" same="" description,="" condition="" code,="" and="" reporting="" location="" may="" be="" grouped="" in="" a="" single="" line="" item.="" special="" test="" equipment="" shall="" be="" described="" in="" sufficient="" detail="" to="" permit="" an="" understanding="" of="" the="" special="" test="" equipment's="" intended="" use.="" the="" contractor="" may="" annotate="" the="" schedule="" to="" identify="" test="" equipment="" the="" contractor="" wishes="" to="" purchase="" from="" the="" government="" or="" general="" purpose="" components="" thereof="" the="" contractor="" wishes="" to="" purchase="" or="" use="" in="" the="" performance="" of="" other="" government="" contracts.="" (2)="" scrap="" lists.="" contractors="" that="" have="" government="" approved="" scrap="" procedures="" may="" prepare="" scrap="" lists="" (provided="" such="" lists="" are="" consistent="" with="" the="" approved="" scrap="" procedures)="" in="" lieu="" of="" inventory="" disposal="" schedules="" except="" for="" scrap="" that--="" (i)="" requires="" demilitarization;="" (ii)="" is="" a="" classified="" item;="" (iii)="" is="" generated="" from="" classified="" items;="" (iv)="" contains="" hazardous="" materials;="" or="" (v)="" is="" dangerous="" to="" the="" public="" health,="" safety,="" or="" welfare.="" (3)="" corrections.="" if="" the="" plant="" clearance="" officer="" finds="" that="" property="" identified="" on="" an="" inventory="" disposal="" schedule="" or="" scrap="" list="" is="" not="" accountable="" under="" this="" contract="" or="" is="" not="" in="" the="" quantity="" or="" condition="" indicated="" on="" the="" inventory="" disposal="" schedule="" or="" scrap="" list,="" he="" or="" she="" may="" require="" the="" contractor="" to="" correct="" the="" inventory="" disposal="" schedule="" or="" scrap="" list,="" may="" reject="" such="" schedules="" or="" lists="" at="" any="" time,="" or="" may="" require="" submission="" of="" an="" inventory="" control="" schedule="" in="" lieu="" of="" a="" scrap="" list.="" (4)="" submission="" requirements.="" inventory="" disposal="" schedules="" or="" scrap="" lists="" shall="" be="" submitted="" to="" the="" plant="" clearance="" officer="" for="" approval="" no="" later="" than--="" (i)="" thirty="" (30)="" days="" following="" the="" contractor's="" determination="" that="" a="" government="" furnished="" property="" item="" is="" no="" longer="" required="" for="" performance="" of="" the="" contract;="" (ii)="" sixty="" (60)="" days="" following="" completion="" of="" contract="" deliveries="" or="" performance="" or="" such="" longer="" period="" as="" may="" be="" approved="" by="" the="" plant="" clearance="" officer;="" or="" (iii)="" one="" hundred="" twenty="" (120)="" days="" following="" contract="" termination="" in="" whole="" or="" in="" part="" or="" such="" longer="" period="" as="" may="" be="" approved="" by="" the="" contracting="" officer.="" (5)="" inventory="" schedule="" adjustments.="" the="" contractor="" shall="" provide="" the="" plant="" clearance="" officer="" at="" least="" 10="" working="" days'="" advance="" written="" notice="" of="" its="" intent="" to="" remove="" a="" government="" furnished="" property="" item,="" including="" an="" item="" identified="" as="" scrap,="" from="" an="" approved="" inventory="" disposal="" schedule.="" unless="" the="" plant="" clearance="" officer="" objects="" to="" the="" intended="" schedule="" adjustment="" within="" the="" notice="" period,="" the="" contractor="" may="" make="" the="" adjustment="" upon="" expiration="" of="" the="" notice="" period.="" (6)="" storage.="" the="" contractor="" shall="" store="" the="" government="" furnished="" property="" identified="" in="" an="" inventory="" disposal="" schedule="" pending="" receipt="" of="" disposal="" instructions.="" if="" the="" government="" fails="" to="" provide="" disposal="" instructions="" within="" 120="" days="" following="" receipt="" of="" an="" acceptable="" inventory="" disposal="" schedule,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" for="" costs="" incurred="" to="" store="" such="" property="" on="" or="" after="" the="" 121st="" day="" following="" receipt="" of="" an="" acceptable="" schedule.="" (7)="" disposal.="" except="" as="" provided="" in="" paragraph="" (j)(7)(i),="" government="" furnished="" property="" shall="" not="" be="" disposed="" of="" until="" the="" contractor="" has="" been="" authorized="" to="" do="" so="" by="" the="" plant="" clearance="" officer.="" (i)="" if="" the="" government="" does="" not="" provide="" disposition="" instructions="" to="" the="" contractor="" within="" 60="" days="" following="" receipt="" of="" an="" acceptable="" scrap="" list,="" the="" contractor="" may="" dispose="" of="" the="" listed="" scrap.="" (ii)="" the="" contractor="" shall="" prepare="" for="" shipment,="" deliver="" f.o.b.="" origin,="" or="" dispose="" of="" government="" furnished="" property="" as="" directed="" by="" the="" plant="" clearance="" officer.="" the="" contractor="" shall="" remove="" and="" destroy="" any="" markings="" identifying="" the="" property="" as="" government="" property="" when="" the="" plant="" clearance="" officer="" directs="" disposal="" by="" sale="" or="" donation,="" notifies="" the="" contractor="" that="" the="" government="" has="" abandoned="" the="" property,="" or="" directs="" the="" contractor="" to="" scrap="" the="" property.="" (iii)="" the="" net="" proceeds="" from="" a="" disposal="" action="" of="" scrapped="" government="" furnished="" property="" shall="" be="" credited="" to="" the="" contract="" under="" which="" the="" government="" furnished="" property="" was="" accountable="" or,="" when="" scrapped="" government="" furnished="" property="" is="" not="" segregable="" from="" other="" scrap,="" to="" an="" appropriate="" overhead="" account.="" the="" contractor="" shall="" credit="" the="" net="" proceeds="" of="" other="" disposal="" actions="" in="" accordance="" with="" instructions="" provided="" by="" the="" plant="" clearance="" officer.="" (iv)="" the="" contracting="" officer="" may="" require="" the="" contractor="" to="" demilitarize="" the="" property="" prior="" to="" shipment="" or="" disposal.="" any="" adjustment="" in="" contract="" price="" incident="" to="" the="" contracting="" officer's="" direction="" to="" demilitarize="" government="" furnished="" property="" shall="" be="" made="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" (8)="" contractor="" removal="" of="" property.="" the="" contractor="" must="" obtain="" the="" plant="" clearance="" officer's="" approval="" to="" remove="" government="" furnished="" property="" from="" its="" premises="" prior="" to="" receipt="" of="" final="" disposition="" instructions.="" if="" approval="" is="" granted,="" the="" contractor="" shall="" transport="" and="" store="" the="" property="" at="" contractor="" expense.="" the="" storage="" facility="" must="" be="" appropriate="" for="" assuring="" the="" property's="" physical="" safety="" and="" suitability="" for="" use.="" approval="" does="" not="" relieve="" the="" contractor="" of="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" such="" property.="" (9)="" subcontractor="" inventory="" disposal="" schedules.="" when="" the="" contractor="" permits="" a="" subcontractor="" or="" supplier="" to="" use="" at="" a="" subcontractor="" or="" supplier="" managed="" site="" government="" property="" furnished="" to="" the="" contractor="" for="" performance="" of="" this="" contract,="" the="" contractor="" shall="" require="" the="" subcontractor="" or="" supplier="" to="" submit="" inventory="" disposal="" schedules="" or="" scrap="" lists="" to="" the="" contractor="" in="" sufficient="" time="" for="" the="" contractor="" to="" comply="" with="" the="" requirements="" of="" paragraph="" (j)(4)="" of="" this="" clause.="" (k)="" abandonment="" and="" restoration="" of="" contractor's="" premises.="" (1)="" the="" government="" shall="" not="" abandon="" government="" furnished="" property="" that="" is="" or="" contains="" a="" hazardous="" material="" at="" a="" contractor-="" owned="" location="" without="" the="" contractor's="" written="" concurrence.="" the="" contractor="" may="" request="" an="" equitable="" adjustment="" in="" contract="" price,="" target="" price="" or="" ceiling="" amount="" incident="" to="" such="" agreement.="" (2)="" the="" government,="" upon="" notice="" to="" the="" contractor,="" may="" abandon="" any="" nonhazardous="" government="" property="" in="" place="" at="" which="" time="" all="" obligations="" of="" the="" government="" regarding="" such="" abandoned="" property="" shall="" cease.="" the="" government="" has="" no="" obligation="" to="" restore="" or="" rehabilitate="" the="" contractor's="" premises="" under="" any="" circumstances="" and,="" except="" as="" provided="" in="" paragraphs="" (g)(2)="" and="" (k)(1),="" has="" no="" liability="" for="" such="" restoration="" or="" rehabilitation.="" (l)="" overseas="" contracts.="" in="" a="" contract="" performed="" outside="" the="" united="" states="" of="" america,="" its="" territories,="" or="" possessions,="" the="" words="" ``government''="" and="" ``government="" furnished''="" (wherever="" they="" appear="" in="" this="" clause)="" shall="" be="" construed="" as="" ``united="" states="" government''="" and="" ``united="" states="" government="" furnished,''="" respectively.="" (end="" of="" clause)="" alternate="" i="" (date).="" as="" prescribed="" in="" 45.102(a),="" substitute="" the="" following="" paragraph="" (f)="" for="" paragraph="" (f)="" of="" the="" basic="" clause:="" (f)="" limited="" risk="" of="" loss.="" (1)="" the="" contractor's="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property="" accountable="" under="" this="" contract="" shall="" be="" limited="" if="" the="" contractor="" maintains="" a="" property="" control="" system="" that="" satisfies="" the="" requirements="" of="" the="" government="" property="" control="" clause="" of="" this="" contract="" (hereinafter="" referred="" to="" as="" an="" approved="" system).="" (2)="" when="" the="" contractor="" maintains="" an="" approved="" system,="" the="" contractor="" shall="" not="" be="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" accountable="" under="" this="" contract="" except="" loss,="" theft,="" destruction,="" or="" damage="" for="" which="" the="" contractor="" is="" expressly="" responsible="" under="" the="" terms="" of="" this="" contract="" or="" loss,="" theft,="" destruction,="" or="" damage="" that="" results="" from--="" (i)="" a="" risk="" expressly="" required="" to="" be="" insured="" under="" this="" contract="" but="" only="" to="" the="" extent="" of="" the="" insurance="" required="" to="" be="" purchased="" and="" maintained,="" or="" to="" the="" extent="" of="" insurance="" actually="" purchased="" and="" maintained,="" whichever="" is="" greater;="" (ii)="" a="" risk="" that="" is="" in="" fact="" covered="" by="" insurance="" or="" for="" which="" the="" contractor="" is="" otherwise="" reimbursed,="" but="" only="" to="" the="" extent="" of="" such="" insurance="" or="" reimbursement;="" or="" (iii)="" willful="" misconduct="" or="" lack="" of="" good="" faith="" on="" the="" part="" of="" the="" contractor's="" managerial="" personnel.="" (3)="" following="" notice="" from="" the="" government's="" property="" administrator="" to="" one="" of="" the="" contractor's="" managerial="" personnel="" that="" the="" contractor's="" or="" a="" subcontractor's="" property="" control="" system="" is="" not="" in="" compliance="" with="" the="" requirements="" of="" the="" government="" property="" control="" clause="" of="" this="" contract,="" the="" contractor's="" failure="" to="" correct="" its="" system="" or="" to="" have="" a="" subcontractor's="" system="" corrected="" within="" the="" dates="" specified="" by="" the="" government's="" property="" administrator,="" or="" such="" other="" mutually="" agreed="" dates,="" shall="" be="" considered="" willful="" misconduct="" or="" lack="" of="" good="" faith="" on="" the="" part="" of="" the="" contractor's="" managerial="" personnel.="" the="" contractor="" shall="" [[page="" 30203]]="" be="" liable="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" the="" government="" furnished="" property="" accountable="" under="" this="" contract="" except="" such="" loss,="" theft,="" destruction,="" or="" damage="" that="" the="" contractor="" can="" establish="" by="" clear="" and="" convincing="" evidence--="" (i)="" did="" not="" result="" from="" the="" contractor's="" failure="" to="" maintain="" an="" approved="" system;="" or="" (ii)="" occurred="" while="" an="" approved="" system="" was="" maintained="" by="" the="" contractor.="" (4)="" except="" as="" provided="" in="" (f)(3)(i)="" and="" (f)(3)(ii),="" the="" contractor="" shall="" be="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property="" accountable="" under="" this="" contract="" immediately="" upon="" notice="" by="" certified="" mail="" that="" the="" government="" has="" withdrawn="" approval="" of="" the="" contractor's="" government="" property="" control="" system.="" (5)="" the="" contractor="" is="" not="" liable="" for="" government="" property="" properly="" consumed="" in="" performing="" this="" contract.="" the="" contractor="" shall="" have="" no="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to="" government="" property="" furnished="" for="" performance="" of="" services="" entirely="" on="" real="" property="" owned="" or="" leased="" by="" the="" government="" when="" the="" contractor="" does="" not="" control="" the="" use="" of,="" or="" access="" to,="" such="" property.="" (6)="" the="" contractor's="" transfer="" of="" government="" furnished="" property="" to="" the="" possession="" and="" control="" of="" a="" subcontractor,="" does="" not="" affect="" the="" contractor's="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" that="" property.="" (7)="" except="" as="" provided="" in="" paragraph="" (f)(8)="" of="" this="" clause,="" the="" contractor="" shall="" notify="" the="" government's="" property="" administrator="" in="" writing="" promptly="" following="" the="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property.="" such="" notice="" shall="" identify--="" (i)="" lost,="" stolen,="" destroyed,="" or="" damaged="" government="" property="" by="" description,="" contract="" number,="" national="" stock="" number="" (if="" known),="" and="" either="" part="" number="" or="" identification="" number;="" (ii)="" the="" date="" a="" loss="" or="" theft="" was="" discovered="" or="" damage="" or="" destruction="" occurred="" and,="" if="" known,="" the="" circumstances;="" (iii)="" each="" property="" item's="" acquisition="" cost;="" (iv)="" the="" contracts="" affected;="" (v)="" all="" known="" interests="" in="" commingled="" property="" of="" which="" the="" government="" furnished="" property="" is="" a="" part;="" and="" (vi)="" the="" insurance,="" if="" any,="" covering="" any="" part="" of="" or="" interest="" in="" such="" commingled="" property.="" (8)="" the="" contractor="" is="" not="" required="" to="" provide="" notice="" of="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" low="" value="" property="" which="" the="" contractor="" does="" not="" need="" for="" continued="" performance="" of="" this="" contract="" until="" contract="" completion="" or="" termination.="" such="" notice="" shall="" include="" the="" information="" required="" by="" paragraph="" (f)(7)="" of="" this="" clause.="" (9)="" the="" contractor="" shall="" take="" all="" reasonable="" action="" to="" protect="" damaged="" government="" furnished="" property="" from="" further="" damage="" and="" to="" physically="" separate="" such="" property="" from="" all="" other="" property.="" (10)="" the="" contractor="" shall="" repair,="" renovate,="" or="" take="" such="" other="" action="" with="" respect="" to="" lost,="" stolen,="" damaged,="" or="" destroyed="" government="" furnished="" property="" as="" the="" contracting="" officer="" directs="" and="" adjust="" the="" property="" records="" accordingly.="" when="" such="" repair,="" renovation,="" or="" action="" is="" not="" the="" contractor's="" responsibility="" under="" this="" contract,="" the="" contractor="" shall="" be="" entitled="" to="" an="" equitable="" price="" adjustment,="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" contractor="" responsible="" repairs="" to,="" or="" replacements="" of,="" government="" furnished="" property="" shall="" be="" accomplished="" at="" no="" change="" in="" contract="" price.="" (11)="" the="" contractor="" shall="" not="" include="" in="" any="" price="" to="" the="" government,="" any="" charge="" or="" reserve="" for="" insurance="" (including="" any="" self-="" insurance="" fund="" or="" reserve)="" covering="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property="" except="" to="" the="" extent="" the="" government="" might="" have="" expressly="" required="" the="" contractor="" to="" carry="" such="" insurance="" under="" another="" provision="" of="" this="" contract.="" (12)="" if="" the="" contractor="" is="" reimbursed="" or="" otherwise="" compensated="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property,="" the="" contractor="" shall="" use="" the="" proceeds="" to="" repair,="" renovate,="" or="" replace="" such="" property="" or="" equitably="" reimburse="" the="" government,="" as="" directed="" by="" the="" contracting="" officer="" and="" adjust="" the="" property="" records="" accordingly.="" (13)="" the="" contractor="" shall="" do="" nothing="" to="" prejudice="" the="" government's="" rights="" to="" recover="" against="" third="" parties="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property.="" when="" requested="" by="" the="" contracting="" officer,="" the="" contractor="" shall,="" at="" government="" expense,="" furnish="" to="" the="" government="" all="" reasonable="" assistance="" and="" cooperation="" (including="" the="" prosecution="" of="" suit="" and="" the="" execution="" of="" instruments="" of="" assignment="" in="" favor="" of="" the="" government)="" in="" obtaining="" recovery.="" 52.245-2="" special="" tooling="" and="" special="" test="" equipment--right="" to="" title="" (fixed-price="" contracts).="" as="" prescribed="" in="" 45.102(b),="" insert="" the="" following="" clause:="" special="" tooling="" and="" special="" test="" equipment--right="" to="" title="" (fixed-price="" contracts)="" (date)="" (a)="" definitions.="" the="" ``government="" property="" control''="" clause="" of="" this="" contract,="" 52.245-3,="" defines="" certain="" terms="" used="" in="" section="" 52.245.="" when="" a="" term="" defined="" in="" 52.245-3="" is="" used="" in="" this="" clause,="" it="" has="" the="" same="" meaning="" as="" when="" used="" in="" 52.245-3.="" (b)="" right="" to="" title.="" the="" government="" has="" the="" right="" to="" take="" title="" to="" special="" tooling="" or="" special="" test="" equipment="" items="" that="" are="" not="" required="" to="" be="" delivered="" under="" this="" contract="" if="" the="" costs="" of="" such="" items="" are="" allocable="" to="" this="" contract="" as="" direct="" costs.="" that="" right="" ends="" upon="" expiration="" of="" the="" time="" period,="" in="" paragraph="" (e)="" of="" this="" clause.="" except="" as="" provided="" in="" paragraph="" (f),="" the="" government="" obtains="" title="" under="" this="" clause="" at="" no="" change="" in="" contract="" price,="" target="" price,="" or="" ceiling="" amount.="" (c)="" reports.="" (1)="" the="" contractor="" shall="" submit="" to="" the="" contracting="" officer="" a="" report="" identifying="" special="" tooling="" and="" special="" test="" equipment="" to="" which="" the="" government="" has="" the="" right="" to="" obtain="" title="" under="" paragraph="" (b)="" of="" this="" clause="" as="" soon="" as="" practicable="" during="" contract="" performance="" but="" not="" later="" than="" the="" earlier="" of--="" (i)="" 90="" days="" prior="" to="" completion="" of="" scheduled="" deliveries="" (other="" than="" technical="" data)="" under="" this="" contract;="" (ii)="" 30="" days="" following="" the="" contractor's="" determination="" that="" a="" right="" to="" title="" tooling="" or="" test="" equipment="" item="" is="" no="" longer="" required="" for="" contract="" performance.="" (2)="" the="" reports="" shall="" identify,="" for="" each="" such="" tooling="" or="" test="" equipment="" item="" or="" groups="" of="" identical="" items,="" the="" items="" or="" group's--="" (i)="" nomenclature;="" (ii)="" quantity;="" (iii)="" acquisition="" cost;="" (iv)="" contract="" number;="" (v)="" part="" number(s)="" made="" or="" tested;="" and="" (vi)="" identification="" number.="" (d)="" storage.="" the="" contractor="" shall="" store="" at="" its="" expense="" special="" tooling="" or="" special="" test="" equipment="" identified="" in="" a="" report="" required="" by="" paragraph="" (c)="" of="" this="" clause="" until="" the="" government="" notifies="" the="" contractor="" that="" it="" has="" taken="" title="" to="" a="" special="" tooling="" or="" test="" equipment="" item="" or="" until="" expiration="" of="" the="" government="" notice="" period.="" items="" shall="" be="" stored="" in="" a="" manner="" sufficient="" to="" preserve="" capability="" and="" provide="" protection="" from="" damage.="" if="" the="" government="" requires="" items="" to="" be="" stored="" subsequent="" to="" the="" government's="" assumption="" of="" title,="" the="" contractor="" might="" be="" entitled="" to="" a="" price="" adjustment="" as="" provided="" in="" paragraph="" (f)="" of="" this="" clause.="" (e)="" assumption="" of="" title.="" (1)="" the="" government="" must="" notify="" the="" contractor="" that="" it="" is="" taking="" title="" to="" a="" special="" tooling="" or="" special="" test="" equipment="" item="" or="" items="" within="" 120="" days,="" or="" such="" other="" period="" mutually="" agreed="" upon,="" following="" receipt="" of="" a="" special="" tooling/special="" test="" equipment="" report="" or="" other="" written="" notice="" from="" the="" contractor="" identifying="" special="" tooling="" or="" special="" test="" equipment="" items="" that="" are="" no="" longer="" required="" for="" performance="" of="" this="" contract.="" (2)="" the="" government's="" notice="" may="" be="" written="" or="" electronic,="" shall="" identify="" the="" special="" tooling="" or="" special="" test="" equipment="" item(s),="" and="" may,="" in="" any="" combination--="" (i)="" provide="" packing,="" packaging,="" marking,="" and="" shipping="" instructions;="" (ii)="" direct="" the="" contractor="" to="" prepare="" the="" property="" for="" storage="" at="" the="" contractor's="" facility="" or="" a="" government="" facility;="" or="" (iii)="" provide="" instructions="" when="" accountability="" is="" to="" be="" transferred="" to="" another="" contract.="" (3)="" the="" contractor's="" storage="" obligations="" are="" not="" diminished="" if="" the="" government="" notice="" period,="" or="" any="" extension="" thereof,="" extends="" beyond="" the="" date="" contract="" deliveries="" are="" completed.="" (f)="" price="" adjustment.="" the="" contract="" price="" may="" be="" equitably="" adjusted="" for="" costs="" incurred="" by="" the="" contractor="" to="" store,="" prepare="" for="" storage,="" package,="" pack,="" or="" mark="" for="" shipment,="" the="" special="" tooling="" or="" special="" test="" equipment="" to="" which="" the="" government="" has="" taken="" title.="" any="" adjustment="" in="" contract="" price="" shall="" be="" made="" in="" accordance="" with="" the="" procedures="" of="" the="" ``changes''="" clause="" of="" this="" contract="" and="" only="" to="" the="" extent="" the="" contracting="" officer's="" actions="" under="" paragraph="" (e)="" of="" this="" clause="" required="" the="" contractor="" to="" incur="" costs="" that="" it="" would="" not="" have="" incurred="" under="" customary="" commercial="" practices.="" (g)="" risk="" of="" loss.="" the="" contractor="" is="" responsible="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" special="" tooling="" or="" special="" test="" equipment="" to="" which="" the="" government="" has="" taken="" title="" under="" this="" clause="" during="" the="" period="" commencing="" upon="" the="" government's="" [[page="" 30204]]="" delivery="" of="" the="" notice="" required="" by="" paragraph="" (e)="" of="" this="" clause="" and="" ending="" upon="" placement="" aboard="" a="" carrier's="" conveyance="" (f.o.b.="" origin)="" or="" delivery="" at="" the="" specified="" f.o.b.="" destination="" point.="" (h)="" flow="" down.="" the="" contractor="" shall="" insert="" this="" or="" a="" substantially="" similar="" clause="" in="" all="" contracts="" and="" similar="" instruments="" with="" its="" first-tier="" subcontractors="" or="" suppliers,="" other="" than="" subcontractors="" or="" suppliers="" of="" commercial="" items,="" that="" will="" fabricate="" or="" acquire="" special="" tooling="" or="" special="" test="" equipment="" for="" performance="" of="" this="" contract.="" (end="" of="" clause)="" 52.245-3="" government="" property="" control.="" as="" prescribed="" in="" 45.102(c),="" insert="" the="" following="" clause:="" government="" property="" control="" (date)="" (a)="" definitions.="" as="" used="" in="" this="" clause--="" contractor's="" managerial="" personnel="" means="" the="" contractor's="" directors,="" officers,="" and="" any="" of="" the="" contractor's="" managers,="" superintendents,="" or="" equivalent="" representatives="" who="" have="" supervision="" or="" direction="" of="" all="" or="" substantially="" all="" of="" the="" contractor's--="" (1)="" business;="" or="" (2)="" operations="" at="" a="" site="" connected="" with="" performance="" of="" this="" contract.="" equipment="" means="" items="" whose="" use="" is="" not="" limited="" to,="" or="" with="" only="" minor="" modification="" would="" not="" be="" limited="" to,="" the="" development,="" production,="" or="" maintenance="" of="" a="" particular="" item="" or="" the="" performance="" of="" a="" particular="" service.="" the="" term="" includes,="" but="" is="" not="" limited="" to,="" automated="" data="" processing="" equipment,="" office="" equipment,="" construction="" equipment,="" hand="" tools,="" machine="" tools="" (other="" than="" special="" tooling),="" test="" equipment="" (other="" than="" special="" test="" equipment="" or="" components="" thereof),="" furniture,="" and="" vehicles.="" government="" property="" means="" property="" the="" government="" owns="" or="" leases.="" government-furnished="" property="" means="" property="" provided="" by="" the="" government="" to="" a="" contractor="" for="" performance="" of="" a="" contract.="" low-value="" property="" means="" equipment,="" special="" tooling,="" or="" special="" test="" equipment="" that="" has="" an="" acquisition="" cost="" of="" $1500="" or="" less="" and="" is="" not="" sensitive="" property.="" material="" means="" property="" to="" be="" consumed="" or="" expended="" to="" perform="" a="" service="" or="" produce="" a="" deliverable="" end="" item="" and="" property="" incorporated="" into="" or="" attached="" to="" an="" end="" item.="" the="" term="" includes="" assemblies,="" components,="" parts,="" raw="" and="" processed="" materials,="" and="" supplies="" that="" may="" be="" consumed="" in="" normal="" use="" in="" performing="" a="" contract.="" it="" does="" not="" include="" equipment,="" real="" property,="" special="" test="" equipment,="" special="" tooling,="" or="" unique="" federal="" property.="" nonprofit="" organization="" means="" a="" business="" entity="" organized="" and="" operated="" exclusively="" for="" charitable,="" scientific,="" or="" educational="" purposes,="" the="" net="" earnings="" of="" which="" do="" not="" inure="" to="" the="" benefit="" of="" any="" private="" shareholder="" or="" individual,="" that="" is="" exempt="" from="" federal="" income="" taxation="" under="" section="" 501="" of="" the="" internal="" revenue="" code="" and="" does="" not="" conduct="" a="" substantial="" portion="" of="" its="" activities="" carrying="" on="" propaganda="" or="" otherwise="" attempting="" to="" influence="" legislation="" or="" participating="" in="" any="" political="" campaign="" on="" behalf="" of="" any="" candidate="" for="" public="" office.="" personal="" property="" means="" property="" of="" any="" kind="" or="" interest="" in="" it="" except="" real="" property,="" battleships,="" cruisers,="" aircraft="" carriers,="" destroyers,="" submarines,="" and="" records="" of="" the="" federal="" government.="" plant="" clearance="" officer="" means="" a="" person="" appointed="" to="" perform="" plant="" clearance="" functions.="" precious="" metals="" means="" silver,="" gold,="" platinum,="" palladium,="" iridium,="" osmium,="" rhodium,="" and="" ruthenium.="" preventive="" maintenance="" means="" regularly="" scheduled="" maintenance="" performed="" to="" sustain="" suitability="" for="" intended="" use="" and="" detect="" and="" correct="" minor="" deficiencies="" before="" they="" result="" in="" serious="" consequences.="" property="" means="" real="" and="" personal="" property.="" property="" administrator="" means="" a="" person="" appointed="" to="" perform="" government="" property="" administration.="" real="" property="" means="" land="" and="" rights="" in="" land,="" ground="" improvements,="" utility="" distribution="" systems,="" and="" buildings="" and="" other="" structures.="" it="" does="" not="" include="" foundations="" and="" other="" work="" necessary="" for="" installing="" special="" tooling,="" special="" test="" equipment,="" or="" equipment.="" scrap="" means="" personal="" property="" that="" has="" no="" value="" except="" its="" basic="" metallic,="" mineral,="" or="" organic="" content.="" sensitive="" property="" means="" property="" potentially="" dangerous="" to="" the="" public="" safety="" or="" security="" if="" stolen,="" lost,="" or="" misplaced,="" or="" that="" must="" be="" subject="" to="" exceptional="" physical="" security,="" protection,="" control,="" and="" accountability="" such="" as="" classified="" property,="" weapons,="" ammunition,="" explosives,="" controlled="" substances,="" radioactive="" materials,="" hazardous="" materials="" or="" wastes,="" or="" precious="" metals.="" special="" test="" equipment="" means="" a="" test="" unit="" or="" units="" designed,="" fabricated,="" or="" modified="" to="" accomplish="" special="" purpose="" testing,="" groupings="" of="" such="" items,="" general="" purpose="" items,="" or="" any="" combination="" thereof,="" that="" are="" interconnected="" and="" interdependent="" so="" as="" to="" become="" a="" new="" functional="" entity.="" special="" tooling="" means="" items,="" such="" as="" jigs,="" dies,="" fixtures,="" molds,="" patterns,="" taps,="" gauges,="" or="" other="" equipment="" and="" manufacturing="" aids,="" which="" are="" of="" such="" a="" specialized="" nature="" that="" without="" substantial="" modification="" or="" alteration="" their="" use="" is="" limited="" to="" the="" development,="" production,="" repair,="" or="" maintenance="" of="" particular="" supplies="" or="" components="" thereof,="" or="" to="" the="" performance="" of="" particular="" services.="" unique="" federal="" property="" means="" government-owned="" personal="" property,="" or="" components="" thereof,="" that="" is="" specially="" designed="" to="" perform="" or="" support="" the="" mission="" of="" one="" or="" more="" federal="" agencies="" and="" is="" not="" available="" to="" the="" public.="" work="" in="" process="" means="" bench="" stock="" materials,="" complete="" or="" incomplete="" fabricated="" parts,="" subassemblies,="" assemblies,="" and="" similar="" items="" that="" are="" created="" during="" production="" of="" deliverable="" end="" items="" or="" are="" required="" to="" construct="" special="" tooling="" or="" special="" test="" equipment="" needed="" to="" produce="" deliverable="" end="" items.="" (b)="" general.="" (1)="" this="" clause="" is="" applicable="" to="" government="" furnished="" property;="" property="" stored="" by="" the="" contractor="" at="" the="" government's="" direction="" including="" property="" to="" which="" the="" government="" has="" taken="" title="" under="" 52.245-2;="" and,="" under="" cost-type="" or="" time-and-="" material="" contracts,="" property="" acquired="" or="" fabricated="" by="" a="" contractor="" to="" which="" the="" government="" has="" obtained="" title="" under="" the="" clause="" at="" 52.216-7.="" (2)="" the="" contractor="" is="" responsible="" for="" the="" maintenance,="" protection,="" and="" preservation="" of="" government="" property="" in="" its="" or="" its="" subcontractors'="" possession.="" the="" contractor="" shall="" account="" for="" such="" property="" as="" required="" by="" this="" contract.="" (3)="" if="" the="" contractor="" does="" not="" have="" a="" property="" control="" system="" that="" is="" approved="" by="" the="" government's="" property="" administrator,="" it="" shall="" establish="" a="" system="" that="" satisfies="" the="" requirements="" of="" this="" clause="" within="" 90="" days="" following="" contract="" award="" (or="" such="" other="" mutually="" agreeable="" period).="" notwithstanding="" any="" other="" provision="" of="" this="" contract="" regarding="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" in="" the="" contractor's="" or="" its="" subcontractors'="" possession,="" the="" contractor="" shall="" be="" liable="" for="" such="" loss,="" theft,="" destruction,="" or="" damage="" until="" its="" system="" is="" approved="" by="" the="" government's="" property="" administrator.="" the="" contractor="" shall="" maintain="" its="" system="" during="" the="" period="" government="" property="" is="" in="" its="" or="" its="" subcontractors'="" possession.="" (4)="" the="" contractor="" should="" use="" its="" existing="" property="" control="" system="" or="" a="" modification="" thereof="" when="" the="" existing="" or="" modified="" system="" satisfies="" the="" requirements="" of="" this="" clause.="" (c)="" control="" system="" requirements.="" the="" property="" control="" system="" shall="" include="" written="" processes="" for--="" (1)="" assessing="" the="" system's="" efficiency="" and="" effectiveness,="" recommending="" corrective="" action="" or="" general="" improvements,="" and="" implementing="" appropriate="" changes;="" (2)="" obtaining="" approval="" of="" property="" actions="" from="" the="" responsible="" government="" representative="" no="" later="" than="" the="" time="" specified="" in="" this="" contract="" (when="" such="" approval="" is="" required="" by="" this="" contract)="" and="" appropriately="" documenting="" such="" approval;="" (3)="" inspecting="" property="" acquired="" by="" the="" contractor="" or="" furnished="" by="" the="" government="" for="" performance="" of="" this="" contract="" upon="" receipt;="" (4)="" identifying="" government="" property="" received="" by="" the="" contractor="" that="" was="" intended="" for="" other="" persons="" or="" discrepancies="" between="" the="" type,="" quantity,="" or="" condition="" of="" government="" furnished="" property="" shipped="" to="" and="" actually="" received="" by="" the="" contractor="" and="" initiating="" corrective="" action;="" (5)="" promptly="" entering="" all="" government="" property="" into="" the="" property="" control="" system;="" (6)="" assuring="" that="" government="" property="" is="" properly="" classified="" (see="" paragraph="" (f)(2)(viii));="" (7)="" assuring="" government="" property="" is="" used="" only="" as="" authorized="" by="" the="" contracting="" officer;="" (8)="" controlling="" the="" distribution="" and="" return="" of="" pilferable="" property;="" (9)="" scheduling="" and="" monitoring="" government="" property="" maintenance="" to="" assure="" timely="" performance="" and="" recording="" of="" all="" maintenance="" actions;="" (10)="" accurately="" recording="" by="" type="" and="" quantity="" government="" material="" consumed="" during="" contract="" performance;="" (11)="" performing,="" reporting,="" and="" recording="" all="" inventories="" required="" by="" this="" contract;="" (12)="" identifying="" and="" reporting="" lost,="" damaged,="" or="" destroyed="" government="" property="" and="" generating="" corrective="" action="" recommendations;="" (13)="" maintaining="" special="" security="" for="" classified="" or="" sensitive="" property="" commensurate="" with="" the="" property's="" security="" classification,="" special="" handling="" requirements,="" or="" both;="" [[page="" 30205]]="" (14)="" accurately="" preparing="" and="" timely="" submitting="" the="" records="" and="" reports="" required="" by="" this="" contract;="" (15)="" assuring="" subcontractors="" have="" adequate="" procedures="" for="" the="" control="" and="" protection="" of="" government="" property;="" (16)="" justifying="" the="" continued="" need="" for="" government="" property="" to="" perform="" this="" contract;="" (17)="" moving="" and="" storing="" government="" property="" in="" a="" manner="" commensurate="" with="" the="" property's="" handling="" and="" storage="" requirements;="" and="" (18)="" disposing="" of="" government="" property="" in="" accordance="" with="" the="" requirements="" of="" this="" contract.="" (d)="" access.="" the="" government="" shall="" have="" access,="" at="" all="" reasonable="" times,="" to="" the="" premises="" at="" which="" any="" government="" property="" is="" located="" and="" to="" the="" contractor's="" government="" property="" records="" and="" supporting="" information.="" (e)="" property="" control="" system="" submission,="" review,="" and="" approval.="" (1)="" except="" as="" provided="" in="" paragraph="" (d)(2)="" of="" this="" clause,="" offerors="" shall="" submit="" their="" written="" property="" control="" systems="" and="" processes="" with="" their="" offer="" if--="" (i)="" the="" offeror="" does="" not="" have="" an="" existing="" property="" control="" system="" or="" its="" existing="" system="" has="" not="" been="" approved="" by="" a="" government="" property="" administrator;="" (ii)="" the="" offeror's="" property="" control="" system="" last="" was="" approved,="" or="" approval="" validated,="" more="" than="" 2="" years="" prior="" to="" the="" date="" of="" its="" offer;="" (iii)="" a="" government="" property="" administrator="" has="" requested="" corrections="" to="" the="" offeror's="" system="" or="" procedures="" and="" such="" corrections="" have="" not="" been="" made;="" or="" (iv)="" approval="" of="" the="" system="" has="" been="" withdrawn.="" (2)="" the="" submission="" requirements="" in="" paragraph="" (d)(1)="" do="" not="" apply="" to="" offerors="" that="" have="" a="" government="" property="" system="" that="" has="" been="" approved="" or="" validated="" by="" the="" government="" no="" more="" than="" 2="" years="" prior="" to="" the="" time="" for="" submission="" of="" offers.="" such="" offerors="" are="" required="" only="" to="" submit="" to="" the="" government's="" property="" administrator,="" within="" 90="" days="" following="" contract="" award,="" changes="" required="" to="" conform="" the="" system="" with="" requirements="" in="" this="" contract.="" the="" submission="" date="" may="" be="" extended="" by="" the="" government's="" property="" administrator="" if="" he="" or="" she="" determines="" that="" an="" extension="" is="" warranted.="" (3)="" the="" government's="" property="" administrator="" shall="" review="" the="" contractor's="" system="" for="" conformance="" with="" contract="" requirements="" and="" approve="" or="" require="" corrections="" to="" the="" system="" and="" its="" implementing="" procedures.="" the="" contractor="" shall="" accomplish="" the="" required="" corrections="" at="" no="" change="" in="" price="" or="" fee.="" (4)="" the="" government="" may="" review="" the="" contractor's="" previously="" approved="" system="" or="" require="" the="" contractor="" to="" review="" a="" subcontractor's="" system="" to="" assure="" compliance="" with="" contract="" requirements.="" the="" government's="" property="" administrator="" may="" validate="" approval="" of,="" require="" corrections="" to,="" or="" with="" the="" administrative="" contracting="" officer's="" concurrence,="" withdraw="" approval="" of="" the="" contractor's="" system="" or="" require="" the="" contractor="" to="" have="" a="" subcontractor's="" system="" corrected.="" the="" contractor="" shall="" implement="" corrections="" required="" by="" the="" government's="" property="" administrator="" by="" the="" date="" specified="" by="" the="" property="" administrator="" or="" such="" other="" date="" agreed="" upon="" at="" no="" change="" in="" price="" or="" fee.="" the="" contractor's="" failure="" to="" implement="" corrections="" in="" a="" timely="" manner="" might="" result="" in="" the="" system's="" approval="" being="" withdrawn.="" (5)="" the="" contractor="" shall="" make="" available="" to="" the="" government's="" property="" administrator="" all="" records="" and="" related="" information="" reasonably="" required="" to="" verify="" that="" the="" contractor's="" or="" a="" subcontractor's="" government="" property="" control="" system="" conforms="" to="" contract="" requirements.="" any="" disagreement="" as="" to="" the="" amount="" or="" type="" of="" information="" required="" for="" such="" verification="" shall="" be="" referred="" to="" the="" administrative="" contracting="" officer="" for="" resolution.="" (f)="" property="" records="" and="" supporting="" information--(1)="" general.="" (i)="" the="" contractor="" shall="" establish="" or="" maintain="" a="" property="" record="" that="" is="" current="" and="" complete="" for="" each="" government="" property="" item="" in="" its="" or="" its="" subcontractors'="" possession.="" identical="" items="" may="" be="" consolidated="" in="" a="" single="" property="" record="" if="" the="" consolidated="" record="" provides="" the="" information="" required="" by="" this="" clause.="" the="" contractor="" shall="" identify="" useable="" components="" permanently="" removed="" from="" government="" property="" as="" government="" property="" items,="" enter="" such="" items="" into="" its="" property="" control="" system,="" and="" establish="" and="" maintain="" appropriate="" property="" records.="" property="" records="" created="" by="" a="" subcontractor="" that="" has="" an="" approved="" property="" system="" may="" be="" used="" in="" lieu="" of="" creating="" new="" records.="" (ii)="" contractors="" that="" use="" a="" material="" requirements="" planning,="" manufacturing="" resource="" planning,="" material="" management="" accounting="" system,="" or="" similar="" systems="" may="" use="" those="" systems="" to="" generate="" the="" records="" for="" material="" items.="" (iii)="" if="" the="" contractor="" has="" an="" approved="" property="" control="" system,="" its="" documents="" evidencing="" receipt="" and="" issue="" shall="" be="" the="" property="" control="" records="" for="" government="" material="" issued="" for="" immediate="" consumption.="" (iv)="" when="" the="" government="" is="" responsible="" for="" the="" replacement="" of="" a="" property="" item="" under="" this="" contract="" and="" has="" elected--="" (a)="" to="" replace="" or="" have="" the="" contractor="" replace="" the="" item,="" the="" contractor="" shall="" annotate="" appropriately="" the="" property="" record="" for="" the="" item="" being="" replaced,="" close="" that="" record,="" and="" create="" a="" new="" property="" record="" for="" the="" replacement="" item;="" or="" (b)="" not="" to="" replace="" or="" have="" the="" contractor="" replace="" the="" item,="" the="" contractor="" shall="" close="" the="" property="" record="" for="" that="" item.="" (v)="" the="" contractor="" shall="" provide="" the="" acquisition="" cost="" for="" each="" government="" property="" item="" that="" was="" acquired="" or="" fabricated="" by="" the="" contractor="" during="" performance="" of="" this="" contract.="" estimated="" costs="" may="" be="" provided="" when="" the="" actual="" costs="" are="" not="" known.="" (vi)="" the="" government="" shall="" provide="" the="" acquisition="" cost="" for="" government="" furnished="" property="" within="" 30="" days="" following="" delivery="" of="" the="" property="" to="" the="" contractor.="" the="" contractor="" shall="" notify="" the="" government's="" property="" administrator="" promptly="" if="" the="" acquisition="" cost="" information="" is="" not="" received="" within="" that="" period.="" (vii)="" property="" records="" are="" not="" required="" for="" work="" in="" process.="" (2)="" standard="" information.="" each="" property="" control="" record="" shall="" contain="" the="" following="" information--="" (i)="" the="" item's="" name,="" description,="" property="" classification,="" and="" national="" stock="" number="" (if="" the="" item="" has="" a="" national="" stock="" number).="" the="" national="" stock="" number="" for="" property="" controlled="" by="" documents="" evidencing="" receipt="" and="" issue="" is="" not="" required="" until="" property="" disposal.="" (ii)="" contract="" number="" or="" equivalent="" code="" designation.="" (iii)="" quantity="" received="" or="" fabricated,="" issued,="" and="" on="" hand.="" (iv)="" the="" date="" of="" the="" most="" recent="" physical="" inventory="" or="" other="" posting="" reference.="" (v)="" acquisition="" cost.="" (vi)="" current="" location.="" (for="" low="" value="" property,="" identify="" the="" initial="" location="" only.)="" (vii)="" the="" most="" recent="" transaction="" date.="" (viii)="" the="" property's="" classification.="" (use="" only="" one="" of="" the="" following="" for="" each="" property="" item:="" land,="" buildings,="" other="" real="" property,="" equipment,="" special="" test="" equipment,="" special="" tooling,="" unique="" federal="" property,="" or="" material.)="" (3)="" additional="" information--(i)="" special="" tooling="" and="" special="" test="" equipment="" records.="" the="" contractor="" shall="" provide="" the="" information="" required="" by="" paragraph="" (f)(2)="" for="" each="" general="" purpose="" test="" equipment="" item="" that="" is="" a="" removable="" or="" reusable="" component="" of="" government-owned="" special="" test="" equipment="" if="" removal="" and="" reuse="" is="" economically="" feasible.="" (ii)="" equipment="" records.="" each="" record="" shall="" include="" the="" manufacturer's="" name,="" commercial="" and="" government="" entity="" (cage)="" code="" or="" equivalent="" information,="" serial="" number="" and="" model="" or="" part="" number.="" (iii)="" real="" property="" records.="" (a)="" records="" are="" not="" required="" for="" portable="" buildings="" or="" facilities="" specifically="" acquired="" or="" constructed="" for="" tests="" that="" will="" result="" in="" the="" destruction="" of="" such="" buildings="" or="" facilities.="" (b)="" real="" property="" records="" must="" be="" itemized,="" indexed,="" and="" contain="" a="" description="" of="" the="" property,="" its="" location,="" original="" acquisition="" cost,="" a="" description="" of="" property="" alterations="" made="" or="" construction="" work="" performed="" by="" the="" contractor,="" including="" an="" identification="" of="" the="" construction="" sites="" supporting="" such="" alterations="" or="" construction,="" and="" separately="" identify="" the="" cost="" of="" such="" alterations="" or="" construction.="" supporting="" documentation="" shall="" include="" maps,="" drawings,="" plans,="" specifications,="" and,="" if="" necessary,="" supplementary="" data="" needed="" to="" completely="" describe="" and="" value="" the="" property.="" (c)="" costs="" incurred="" by="" the="" government="" or="" the="" contractor,="" to="" acquire,="" construct,="" alter,="" or="" improve="" government-owned="" or="" -leased="" real="" property,="" including="" additions,="" expansions,="" extensions,="" or="" conversions="" thereof,="" shall="" be="" added="" to="" the="" property's="" acquisition="" cost="" if="" they="" increase="" the="" value,="" life,="" utility,="" capability,="" or="" serviceability="" of="" the="" property.="" (d)="" the="" government's="" real="" property="" records="" shall="" be="" modified="" and="" annotated="" with="" a="" statement="" of="" the="" pertinent="" facts="" when="" property="" is="" sold,="" transferred,="" donated,="" destroyed,="" abandoned="" by="" the="" government="" in="" place,="" or="" condemned.="" (iv)="" records="" of="" maintenance="" actions.="" the="" property="" records="" for="" items="" requiring="" maintenance="" shall="" contain="" the="" maintenance="" schedule,="" the="" dates="" maintenance="" actions="" were="" performed,="" and="" identify="" any="" deficiencies="" discovered.="" (v)="" scrap="" records.="" (a)="" the="" contractor's="" scrap="" records="" shall="" provide="" the--="" [[page="" 30206]]="" (1)="" contract="" number="" or="" equivalent="" code="" designation="" from="" which="" the="" scrap="" was="" derived;="" (2)="" scrap="" classification="" by="" material="" content;="" and="" (3)="" disposition="" and="" disposition="" dates.="" (b)="" when="" contractor="" and="" government-owned="" property="" of="" the="" same="" stock="" or="" classification="" are="" used="" to="" produce="" an="" item="" or="" any="" component="" thereof="" and="" property="" scrapped="" during="" such="" production="" cannot="" be="" identified="" as="" contractor="" or="" government-owned="" property,="" the="" government="" property="" scrap="" records="" shall="" reflect="" a="" proportional,="" equitable="" share="" of="" such="" scrap.="" (vi)="" property="" returned="" under="" warranty.="" the="" contractor="" shall="" establish="" a="" separate="" property="" record="" for="" each="" item="" returned="" for="" correction="" under="" a="" warranty="" and="" maintain="" the="" records="" on="" a="" contract-="" by-contract="" basis.="" the="" records="" shall="" identify="" the="" date="" received,="" the="" contract="" number="" under="" which="" the="" item="" was="" returned,="" the="" corrective="" action="" performed,="" and="" the="" date="" the="" item="" is="" returned="" to="" the="" government.="" once="" a="" property="" record="" has="" been="" established,="" identical="" items="" received="" for="" corrective="" action="" shall="" be="" added="" to="" the="" established="" record="" and="" the="" information="" required="" by="" this="" paragraph="" maintained="" for="" each="" item.="" (vii)="" sensitive="" property.="" property="" records="" shall="" legibly="" and="" conspicuously="" identify="" sensitive="" property.="" (g)="" reports--(1)="" government="" property.="" the="" contractor="" shall="" report="" all="" government="" property="" accountable="" under="" this="" contract="" that="" is="" in="" its="" or="" its="" subcontractors'="" possession="" as="" of="" september="" 30="" of="" each="" calendar="" year="" or="" upon="" completion="" of="" all="" property="" disposal="" actions="" under="" this="" contract,="" whichever="" is="" sooner.="" the="" report="" shall="" be="" prepared="" using="" sf="" 1422="" (or="" an="" agency="" equivalent="" furnished="" by="" the="" contracting="" officer)="" and="" submitted="" to="" the="" government's="" property="" administrator="" no="" later="" than="" october="" 31="" of="" each="" calendar="" year.="" (2)="" misdirected="" government="" property.="" the="" contractor="" shall="" submit="" a="" written="" report="" to="" the="" government's="" property="" administrator="" immediately="" following="" receipt="" of="" government="" property="" intended="" for="" another="" person="" or="" government="" property="" not="" required="" for="" performance="" of="" a="" government="" contract="" and="" request="" disposition="" instructions.="" to="" the="" extent="" practical,="" the="" report="" shall="" identify="" the="" shipment's="" content,="" intended="" recipient,="" carrier="" that="" made="" delivery,="" the="" government="" activity="" from="" which="" the="" shipment="" originated,="" and="" the="" shipment's="" current="" location.="" (3)="" late="" government="" furnished="" property.="" the="" contractor="" shall="" report="" to="" the="" contracting="" officer,="" with="" a="" concurrent="" copy="" to="" the="" government's="" property="" administrator,="" a="" failure="" to="" receive="" government="" furnished="" property="" at="" the="" time="" stated="" in="" the="" contract="" or,="" when="" a="" time="" is="" not="" stated,="" in="" sufficient="" time="" to="" enable="" the="" contractor="" to="" meet="" the="" contract's="" delivery="" or="" performance="" dates.="" each="" report="" shall="" forward="" the="" contractor's="" estimate="" of="" the="" extent="" to="" which="" such="" failure="" has="" affected="" or="" might="" affect="" contract="" performance.="" (h)="" physical="" inventories.--(1)="" periodic.="" except="" for="" low="" value="" property="" and="" work="" in="" process,="" the="" contractor="" shall="" periodically="" physically="" inventory="" all="" government="" property="" in="" its="" possession.="" the="" contractor,="" with="" the="" approval="" of="" the="" property="" administrator,="" shall="" establish="" the="" method,="" frequency,="" and="" procedures="" for="" such="" inventories="" to="" assure="" the="" existence="" and="" location="" of="" such="" property="" are="" accurately="" established="" and="" the="" records="" and="" reports="" required="" by="" this="" clause="" are="" complete="" and="" accurate.="" for="" purposes="" of="" this="" clause,="" electronic,="" optical,="" electro-magnetic,="" or="" similar="" inventory="" systems="" approved="" by="" the="" government's="" property="" administrator="" satisfy="" the="" requirement="" for="" physical="" inventories.="" (2)="" contract="" termination="" or="" completion="" inventories.="" the="" contractor="" shall="" inventory="" all="" property="" furnished="" by="" the="" government="" or="" acquired="" or="" fabricated="" by="" the="" contractor="" for="" performance="" of="" this="" contract="" immediately="" following="" a="" notice="" of="" termination="" or="" partial="" termination="" of="" this="" contract="" or="" upon="" completion="" of="" deliveries="" or="" performance="" under="" the="" contract="" except="" property="" that="" is="" authorized="" for="" use="" on="" a="" follow-on="" or="" other="" government="" contract.="" such="" property="" does="" not="" have="" to="" be="" inventoried="" if="" the="" contractor="" has="" notified="" the="" property="" administrator="" that="" record="" balances="" have="" been="" transferred="" to="" the="" receiving="" contract.="" (3)="" restriction.="" the="" contractor="" personnel="" who="" perform="" physical="" inventories="" shall="" not="" be="" the="" same="" individuals="" who="" maintain="" the="" property="" records="" required="" by="" this="" contract="" or="" have="" custody="" of="" the="" property="" unless="" authorized="" to="" do="" so="" by="" the="" property="" administrator.="" (i)="" markings--(1)="" contractor="" acquired="" or="" fabricated="" property--="" (i)="" cost-type="" contracts.="" the="" contractor="" shall="" legibly="" and="" conspicuously="" mark="" contractor="" acquired="" or="" fabricated="" property="" other="" than="" material="" with="" the="" phrase="" ``u.s.="" government="" property''="" (or="" a="" similar="" phrase="" that="" conveys="" government="" ownership),="" and="" a="" control="" number="" that="" links="" the="" property="" to="" the="" property="" records="" maintained="" by="" the="" contractor,="" as="" soon="" as="" practicable="" following="" the="" government's="" assumption="" of="" title="" to="" the="" property.="" (ii)="" fixed="" price="" type="" contracts.="" this="" paragraph="" applies="" only="" to="" special="" tooling="" or="" special="" test="" equipment="" to="" which="" the="" government="" has="" taken="" title="" under="" 52.245-2.="" the="" contractor="" shall="" affix="" the="" markings="" identified="" in="" paragraph="" (i)(1)(i)="" to="" such="" tooling="" or="" test="" equipment="" as="" soon="" as="" practicable="" following="" receipt="" of="" the="" government's="" notice="" that="" it="" has="" taken="" title="" to="" a="" special="" tooling="" or="" special="" test="" equipment="" item.="" (2)="" government="" furnished="" property.="" promptly="" following="" receipt="" of="" government="" furnished="" property,="" the="" contractor="" shall="" determine="" whether="" the="" property="" bears="" a="" government="" ownership="" marking,="" mark="" unmarked="" property="" with="" the="" markings="" identified="" in="" paragraph="" (i)(1)(i),="" and="" replace="" any="" control="" numbers="" affixed="" by="" others="" with="" the="" contractor's="" control="" number.="" (j)="" overseas="" contracts.="" in="" a="" contract="" performed="" outside="" the="" united="" states="" of="" america,="" its="" territories,="" or="" possessions,="" the="" words="" ``government''="" and="" ``government="" furnished'',="" (as="" used="" in="" this="" clause,="" mean="" ``united="" states="" government''="" and="" ``united="" states="" government="" furnished,''="" respectively.)="" (end="" of="" clause)="" alternate="" i="" (date)="" as="" prescribed="" in="" 45.102(c),="" replace="" paragraphs="" (f)="" and="" (g)="" of="" the="" basic="" clause="" with="" the="" following:="" (f)="" property="" records.="" the="" contractor="" shall="" establish="" a="" separate="" property="" record="" for="" each="" government="" property="" item="" returned="" for="" correction="" under="" a="" warranty="" and="" maintain="" the="" records="" on="" a="" contract-="" by-contract="" basis.="" the="" records="" shall="" identify="" the="" item's="" name,="" description,="" property="" classification,="" and="" national="" stock="" number="" (if="" the="" item="" has="" a="" national="" stock="" number),="" the="" date="" received,="" the="" contract="" number="" under="" which="" the="" item="" was="" returned,="" the="" corrective="" action="" performed,="" and="" the="" date="" the="" item="" is="" returned="" to="" the="" government.="" once="" a="" property="" record="" has="" been="" established,="" identical="" items="" received="" for="" corrective="" action="" shall="" be="" added="" to="" the="" established="" record="" and="" the="" information="" required="" by="" this="" paragraph="" maintained="" for="" each="" item.="" (g)="" reports--(1)="" misdirected="" government="" property.="" the="" contractor="" shall="" submit="" a="" written="" report="" to="" the="" government's="" property="" administrator,="" immediately="" following="" receipt="" of="" government="" property="" intended="" for="" another="" person="" or="" government="" property="" not="" required="" for="" performance="" of="" a="" government="" contract="" and="" request="" disposition="" instructions.="" to="" the="" extent="" practical,="" the="" report="" shall="" identify="" the="" shipment's="" content,="" intended="" recipient,="" carrier="" that="" made="" delivery,="" the="" government="" activity="" from="" which="" the="" shipment="" originated,="" and="" the="" shipment's="" current="" location.="" (2)="" late="" government="" furnished="" property.="" the="" contractor="" shall="" report="" to="" the="" contracting="" officer,="" with="" a="" concurrent="" copy="" to="" the="" government's="" property="" administrator,="" a="" failure="" to="" receive="" government="" furnished="" property="" at="" the="" time="" stated="" in="" the="" contract="" or,="" when="" a="" time="" is="" not="" stated,="" in="" sufficient="" time="" to="" enable="" the="" contractor="" to="" meet="" the="" contract's="" delivery="" or="" performance="" dates.="" each="" report="" shall="" forward="" the="" contractor's="" estimate="" of="" the="" extent="" to="" which="" such="" failure="" has="" affected="" or="" might="" affect="" contract="" performance.="" 52.245-4="" government="" property="" (cost="" reimbursement="" and="" time="" and="" material="" contracts).="" as="" prescribed="" in="" 45.102(d),="" insert="" the="" following="" clause:="" government="" property="" (cost="" reimbursement="" and="" time="" and="" material="" contracts)="" (date)="" (a)="" definitions.="" the="" ``government="" property="" control''="" clause="" of="" this="" contract,="" 52.245-3,="" defines="" certain="" terms="" used="" in="" section="" 52.245.="" when="" a="" term="" defined="" in="" 52.245-3="" is="" used="" in="" this="" clause,="" it="" has="" the="" same="" meaning="" as="" when="" used="" in="" 52.245-3.="" (b)="" general.="" (1)="" except="" as="" provided="" in="" paragraph="" (c)="" of="" this="" clause,="" the="" contractor="" shall="" use="" its="" own="" property="" to="" perform="" this="" contract.="" (2)="" the="" contractor="" shall="" not="" acquire="" equipment="" or="" real="" property="" for="" the="" government="" unless--="" (i)="" the="" equipment="" or="" real="" property="" is="" specified="" as="" a="" deliverable="" end="" item="" under="" this="" contract;="" or="" (ii)="" the="" contractor="" is="" a="" nonprofit="" organization="" whose="" primary="" purpose="" is="" the="" conduct="" of="" scientific="" research,="" or="" a="" nonprofit="" institution="" of="" higher="" education,="" that="" is="" performing="" a="" government="" contract="" for="" basic="" or="" applied="" scientific="" research="" and="" has="" obtained="" the="" contracting="" officer's="" approval="" to="" acquire="" tangible="" personal="" property="" for="" the="" [[page="" 30207]]="" government="" prior="" to="" the="" acquisition="" of="" such="" property.="" (3)="" the="" contractor="" shall="" not="" use="" government="" property,="" including="" property="" furnished="" by="" the="" government="" for="" performance="" of="" this="" contract,="" on="" any="" other="" government="" contract="" or="" for="" any="" commercial="" purpose="" without="" the="" contracting="" officer's="" prior="" approval.="" unless="" otherwise="" permitted="" by="" law,="" commercial="" use="" shall="" be="" on="" a="" rental="" basis.="" the="" terms="" and="" conditions="" of="" the="" ``rental="" charges="" for="" commercial="" use''="" clause="" of="" this="" contract="" shall="" apply="" to="" each="" rental.="" (4)="" if="" the="" contractor="" commingles="" contractor="" acquired="" or="" fabricated="" material="" with="" government="" furnished="" material,="" the="" provisions="" of="" paragraph="" (c)(3)="" of="" this="" clause="" regarding="" suitability="" for="" intended="" use="" shall="" not="" apply="" to="" the="" commingled="" government="" furnished="" material.="" notwithstanding="" any="" other="" provision="" of="" this="" contract,="" the="" contractor="" shall="" be="" responsible="" for="" any="" failure="" to="" comply="" with="" contract="" requirements="" attributable="" to="" material="" that="" was="" commingled.="" (c)="" property="" furnished="" for="" performance="" of="" this="" contract--(1)="" title.="" (i)="" the="" government="" retains="" title="" to="" government="" furnished="" property,="" including="" government="" furnished="" property="" that="" is="" incorporated="" into="" or="" attached="" to="" any="" property="" it="" does="" not="" own.="" government="" furnished="" property="" does="" not="" become="" a="" fixture="" or="" lose="" its="" identity="" as="" personal="" property="" by="" being="" attached="" to="" real="" property.="" (ii)="" the="" contractor="" shall="" not="" improve="" or="" make="" structural="" alterations="" to="" real="" property="" furnished="" for="" performance="" of="" this="" contract="" unless="" expressly="" authorized="" to="" do="" so="" in="" writing="" by="" the="" contracting="" officer.="" title="" to="" such="" improvements="" or="" alterations="" shall="" vest="" in="" the="" government="" if="" the="" property="" is="" accountable="" under="" this="" contract="" or="" will="" be="" determined="" by="" the="" terms="" of="" the="" contract="" under="" which="" the="" real="" property="" is="" accountable.="" (2)="" rent="" free="" basis.="" the="" government="" furnished="" property="" identified="" in="" this="" contract="" may="" be="" used="" for="" performance="" of="" the="" contract="" on="" a="" rent-free="" basis.="" the="" government="" shall,="" when="" requested="" by="" the="" contractor,="" provide="" information="" reasonably="" required="" for="" the="" intended="" use="" of="" such="" property="" to="" the="" extent="" the="" government="" has="" the="" right="" to="" release="" or="" disclose="" the="" information.="" (3)="" suitability="" for="" intended="" use.="" (i)="" the="" contract="" delivery="" or="" performance="" dates="" are="" based="" upon="" the="" expectation="" that="" government="" furnished="" property="" will="" be="" suitable="" for="" its="" intended="" use,="" except="" property="" furnished="" ``as="" is''="" (see="" paragraph="" (c)(4)),="" and="" delivered="" to="" the="" contractor="" at="" the="" times="" stated="" in="" the="" contract="" or,="" if="" not="" so="" stated,="" in="" sufficient="" time="" to="" enable="" the="" contractor="" to="" meet="" the="" contract's="" delivery="" or="" performance="" dates.="" (ii)="" the="" contractor="" shall="" notify="" the="" contracting="" officer="" promptly="" following="" the="" contractor's="" identification="" of="" government="" furnished="" property="" that="" is="" not="" suitable="" for="" its="" intended="" use="" and="" take="" corrective="" action="" or="" dispose="" of="" the="" property="" as="" directed="" by="" the="" contracting="" officer.="" the="" contract="" shall="" be="" equitably="" adjusted="" in="" accordance="" with="" paragraph="" (e)="" of="" this="" clause.="" (iii)="" the="" contractor="" may="" request="" an="" equitable="" adjustment="" when="" government="" furnished="" property="" is="" not="" delivered="" to="" the="" contractor="" by="" the="" required="" time="" and="" such="" untimely="" delivery="" has="" affected="" contract="" performance.="" any="" adjustment="" shall="" be="" made="" in="" accordance="" with="" paragraph="" (e)="" of="" this="" clause.="" (4)="" property="" furnished="" ``as="" is''.="" (i)="" offerors="" and="" contractors="" are="" responsible="" for="" assuring="" that="" government="" furnished="" property="" made="" available="" on="" an="" ``as="" is''="" basis="" is="" suitable="" for="" the="" offerors'="" or="" contractor's="" purposes.="" such="" property="" is="" furnished="" f.o.b.="" at="" the="" location="" specified="" in="" the="" solicitation="" or="" contract.="" the="" cost="" of="" transporting,="" installing,="" modifying,="" repairing,="" or="" otherwise="" making="" such="" property="" suitable="" for="" the="" contractor's="" intended="" use="" shall="" be="" at="" the="" contractor's="" expense.="" modifications="" to="" property="" furnished="" ``as="" is''="" require="" the="" contracting="" officer's="" prior="" written="" approval.="" (ii)="" special="" tooling="" or="" special="" test="" equipment="" is="" furnished="" ``as="" is''="" for="" performance="" of="" this="" contract="" if="" the="" contractor="" acquired="" or="" fabricated="" and="" the="" government="" took="" title="" to="" such="" tooling="" or="" test="" equipment="" under="" this="" or="" a="" prior="" contract.="" (iii)="" the="" government="" makes="" no="" warranty="" whatsoever="" with="" respect="" to="" property="" furnished="" ``as="" is''="" except="" that="" the="" property="" will="" be="" in="" the="" same="" condition="" when="" placed="" at="" the="" specified="" f.o.b.="" location="" as="" when="" inspected="" by="" the="" contractor="" or,="" if="" not="" inspected="" by="" the="" contractor,="" as="" of="" the="" last="" date="" identified="" in="" the="" solicitation="" or="" contract="" for="" contractor="" inspection.="" the="" contractor="" is="" responsible="" for="" verifying="" that="" the="" property's="" condition="" has="" not="" changed="" during="" that="" period.="" if="" the="" contractor="" determines="" the="" property's="" condition="" has="" changed="" and="" such="" change="" will="" adversely="" affect="" the="" contractor,="" the="" contractor="" shall="" immediately="" notify="" the="" contracting="" officer="" and="" identify="" the="" changed="" condition.="" if="" the="" contracting="" officer="" concurs="" that="" the="" property's="" condition="" has="" changed,="" he="" or="" she="" may="" restore="" the="" property="" or="" substitute="" other="" government="" property="" at="" no="" change="" in="" the="" contract's="" cost="" or="" fee;="" permit="" the="" contractor="" to="" restore="" the="" property="" subject="" to="" an="" equitable="" adjustment;="" or,="" decline="" to="" provide="" the="" property="" subject="" to="" an="" equitable="" adjustment.="" the="" foregoing="" provisions="" for="" adjustment="" are="" the="" exclusive="" remedies="" available="" to="" the="" contractor.="" the="" government="" has="" no="" liability="" for="" changes="" in="" the="" property's="" condition="" discovered="" after="" removal="" from="" the="" specified="" f.o.b.="" location.="" (iv)="" repairs="" to="" or="" modifications="" of="" property="" furnished="" ``as="" is''="" do="" not="" affect="" the="" government's="" title="" to="" such="" property.="" (5)="" return="" of="" government="" furnished="" property.="" if="" this="" contract="" requires="" government="" furnished="" property="" to="" be="" returned="" directly="" to="" the="" government="" and="" not="" entered="" into="" the="" property="" disposal="" process--="" (i)="" the="" contractor="" shall="" notify="" the="" contract="" administration="" office="" of="" its="" intent="" to="" return="" such="" property="" at="" least="" 10="" working="" days="" prior="" to="" return.="" notices="" shall="" identify="" the="" contracts="" under="" which="" the="" items="" are="" accountable="" and="" provide="" each="" item's="" name,="" description,="" and="" national="" stock="" number,="" if="" known,="" or="" part="" number="" or="" identification="" number.="" (ii)="" the="" property="" shall="" be="" returned="" to="" the="" government="" in="" a="" condition="" suitable="" for="" its="" intended="" use="" except--="" (a)="" lost,="" stolen,="" or="" destroyed="" property="" that="" the="" government="" has="" determined="" will="" not="" be="" replaced;="" (b)="" damaged="" property="" that="" the="" government="" has="" determined="" will="" not="" be="" repaired;="" (c)="" property="" consumed="" in="" performance="" of="" this="" contract;="" (d)="" property="" attached="" to,="" incorporated="" into,="" or="" delivered="" with,="" a="" deliverable="" end="" item;="" or="" (e)="" property="" furnished="" ``as="" is''="" shall="" be="" returned="" in="" equal="" or="" better="" condition="" than="" when="" furnished="" to="" the="" contractor.="" (6)="" changes="" in="" government="" furnished="" property.="" (i)="" the="" contracting="" officer="" may="" increase,="" decrease,="" or="" substitute="" other="" government="" property="" for="" the="" property="" furnished="" or="" to="" be="" furnished="" for="" performance="" of="" this="" contract="" or="" require="" use="" of="" government="" furnished="" property="" in="" lieu="" of="" contractor="" property.="" (ii)="" except="" as="" provided="" in="" paragraph="" (c)(6)(iv),="" any="" increase="" in="" the="" amount="" of="" property="" furnished="" for="" performance="" of="" this="" contract="" shall="" result="" in="" an="" equitable="" reduction="" in="" contract="" cost="" and="" fee="" and="" appropriate="" adjustment="" of="" the="" contract="" delivery="" or="" performance="" dates.="" (iii)="" the="" contractor="" may="" request="" an="" equitable="" adjustment="" in="" accordance="" with="" paragraph="" (e)="" of="" this="" clause="" for="" a="" decrease="" in="" or="" substitution="" for="" the="" property="" identified="" in="" the="" contract="" or="" withdrawal="" of="" authority="" to="" use="" property="" accountable="" under="" another="" contract="" in="" performance="" of="" this="" contract="" provided="" such="" decrease,="" substitution,="" or="" withdrawal="" increases="" the="" costs="" of="" contract="" performance.="" (iv)="" if="" the="" contracting="" officer="" directs="" the="" contractor="" to="" use="" government="" furnished="" property="" in="" lieu="" of="" contractor="" property="" in="" performance="" of="" this="" contract,="" any="" adjustment="" to="" the="" contract="" terms="" and="" conditions="" shall="" be="" made="" in="" accordance="" with="" the="" ``changes''="" clause="" of="" this="" contract.="" (d)="" title="" to="" contractor="" acquired="" or="" fabricated="" property.="" the="" clause="" at="" 52.216-7="" provides="" the="" government="" title="" to="" property="" acquired="" or="" fabricated="" by="" the="" contractor="" for="" performance="" of="" this="" contract="" if="" the="" costs="" to="" acquire="" or="" fabricate="" the="" property="" are="" allocable="" to="" this="" contract="" as="" direct="" costs.="" (e)="" equitable="" adjustments.="" (1)="" equitable="" adjustments="" shall="" be="" the="" contractor's="" exclusive="" remedy="" for="" government="" actions="" under="" this="" clause="" and="" shall="" be="" made="" in="" accordance="" with="" the="" procedures="" of="" the="" changes="" clause.="" the="" government="" shall="" not="" be="" liable="" to="" suit="" for="" breach="" of="" contract="" for--="" (i)="" any="" delay="" in="" delivery="" of="" government="" furnished="" property;="" (ii)="" delivery="" of="" government="" furnished="" property="" in="" a="" condition="" not="" suitable="" for="" its="" intended="" use;="" (iii)="" a="" decrease="" in="" or="" substitution="" of="" government="" furnished="" property;="" or="" (iv)="" failure="" to="" repair="" or="" replace="" government="" property="" when="" the="" government="" is="" responsible="" for="" repair="" or="" replacement.="" (2)="" an="" equitable="" adjustment="" for="" government="" furnished="" property="" that="" is="" not="" in="" a="" condition="" suitable="" for="" intended="" use="" or="" the="" withdrawal="" or="" substitution="" of="" government="" furnished="" property="" may="" include="" an="" amount="" for="" the="" restoration="" and="" rehabilitation="" of="" the="" contractor's="" premises="" caused="" by="" such="" condition,="" withdrawal,="" or="" substitution.="" (f)="" limited="" risk="" of="" loss.="" (1)="" the="" contractor's="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" accountable="" under="" this="" contract="" shall="" be="" limited="" if="" the="" contractor="" maintains="" a="" property="" control="" system="" that="" satisfies="" the="" requirements="" of="" the="" [[page="" 30208]]="" government="" property="" control="" clause="" of="" this="" contract="" (hereinafter="" referred="" to="" as="" an="" approved="" system).="" (2)="" when="" the="" contractor="" maintains="" an="" approved="" system,="" the="" contractor="" shall="" not="" be="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" accountable="" under="" this="" contract="" except="" loss,="" theft,="" destruction,="" or="" damage="" for="" which="" the="" contractor="" is="" expressly="" responsible="" under="" the="" terms="" of="" this="" contract="" or="" loss,="" theft,="" destruction,="" or="" damage="" that="" results="" from--="" (i)="" a="" risk="" expressly="" required="" to="" be="" insured="" under="" this="" contract="" but="" only="" to="" the="" extent="" of="" the="" insurance="" required="" to="" be="" purchased="" and="" maintained,="" or="" to="" the="" extent="" of="" insurance="" actually="" purchased="" and="" maintained,="" whichever="" is="" greater;="" (ii)="" a="" risk="" that="" is,="" in="" fact,="" covered="" by="" insurance="" or="" for="" which="" the="" contractor="" is="" otherwise="" reimbursed,="" but="" only="" to="" the="" extent="" of="" such="" insurance="" or="" reimbursement;="" or="" (iii)="" willful="" misconduct="" or="" lack="" of="" good="" faith="" on="" the="" part="" of="" the="" contractor's="" managerial="" personnel.="" (3)="" following="" notice="" from="" the="" government's="" property="" administrator="" to="" one="" of="" the="" contractor's="" managerial="" personnel="" that="" the="" contractor's="" or="" a="" subcontractor's="" property="" control="" system="" is="" not="" in="" compliance="" with="" the="" requirements="" of="" the="" government="" property="" control="" clause="" of="" this="" contract,="" the="" contractor's="" failure="" to="" correct="" its="" system="" or="" to="" have="" a="" subcontractor's="" system="" corrected="" within="" the="" dates="" specified="" by="" the="" government's="" property="" administrator,="" or="" such="" other="" mutually="" agreed="" dates,="" shall="" be="" considered="" willful="" misconduct="" or="" lack="" of="" good="" faith="" on="" the="" part="" of="" the="" contractor's="" managerial="" personnel.="" the="" contractor="" shall="" be="" liable="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" the="" government="" property="" in="" its="" possession="" except="" such="" loss,="" theft,="" destruction,="" or="" damage="" that="" the="" contractor="" can="" establish="" by="" clear="" and="" convincing="" evidence--="" (i)="" did="" not="" result="" from="" the="" contractor's="" failure="" to="" maintain="" an="" approved="" system;="" or="" (ii)="" occurred="" while="" an="" approved="" system="" was="" maintained="" by="" the="" contractor.="" (4)="" except="" as="" provided="" in="" (f)(3)(i)="" and="" (ii),="" the="" contractor="" shall="" be="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" furnished="" property="" in="" its="" possession="" immediately="" upon="" notice="" by="" certified="" mail="" that="" the="" government="" has="" withdrawn="" approval="" of="" the="" contractor's="" government="" property="" control="" system.="" (5)="" the="" contractor="" is="" not="" liable="" for="" government="" property="" properly="" consumed="" in="" performing="" this="" contract.="" the="" contractor="" shall="" have="" no="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to="" government="" property="" furnished="" for="" performance="" of="" services="" entirely="" on="" real="" property="" owned="" or="" leased="" by="" the="" government="" when="" the="" contractor="" does="" not="" control="" the="" use="" of,="" or="" access="" to,="" such="" property.="" (6)="" the="" contractor's="" transfer="" of="" government="" property="" to="" the="" possession="" and="" control="" of="" a="" subcontractor="" does="" not="" affect="" the="" contractor's="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" that="" property.="" (7)="" except="" as="" provided="" in="" paragraph="" (f)(8)="" of="" this="" clause,="" the="" contractor="" shall="" notify="" the="" government's="" property="" administrator="" in="" writing="" promptly="" following="" the="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property.="" such="" notice="" shall="" identify--="" (i)="" lost,="" stolen,="" destroyed,="" or="" damaged="" government="" property="" by="" description,="" contract="" number,="" national="" stock="" number="" (if="" known),="" and="" either="" part="" number="" or="" identification="" number;="" (ii)="" the="" date="" a="" loss="" or="" theft="" was="" discovered="" or="" damage="" or="" destruction="" occurred="" and,="" if="" known,="" the="" circumstances;="" (iii)="" each="" property="" item's="" acquisition="" cost;="" (iv)="" the="" contracts="" affected;="" (v)="" all="" known="" interests="" in="" commingled="" property="" of="" which="" the="" government="" property="" is="" a="" part;="" and="" (vi)="" the="" insurance,="" if="" any,="" covering="" any="" part="" of="" or="" interest="" in="" such="" commingled="" property.="" (8)="" the="" contractor="" is="" not="" required="" to="" provide="" notice="" of="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" low="" value="" property="" which="" the="" contractor="" does="" not="" need="" for="" continued="" performance="" of="" this="" contract="" until="" contract="" completion="" or="" termination.="" such="" notice="" shall="" include="" the="" information="" required="" by="" paragraph="" (f)(7)="" of="" this="" clause.="" (9)="" the="" contractor="" shall="" take="" all="" reasonable="" action="" to="" protect="" damaged="" government="" property="" from="" further="" damage="" and="" to="" physically="" separate="" such="" property="" from="" all="" other="" property.="" (10)="" the="" contractor="" shall="" repair,="" renovate,="" or="" take="" such="" other="" action="" with="" respect="" to="" lost,="" stolen,="" damaged,="" or="" destroyed="" government="" property="" as="" the="" contracting="" officer="" directs="" and="" adjust="" the="" property="" records="" accordingly.="" when="" such="" repair,="" renovation,="" or="" action="" is="" not="" the="" contractor's="" responsibility="" under="" this="" contract,="" the="" contractor="" shall="" be="" entitled="" to="" an="" equitable="" price="" adjustment="" in="" accordance="" with="" paragraph="" (e)="" of="" this="" clause.="" contractor="" responsible="" repairs="" to="" or="" replacements="" of="" government="" property="" shall="" be="" accomplished="" at="" no="" change="" in="" cost="" or="" fee.="" (11)="" the="" contractor="" shall="" not="" include="" in="" the="" contract="" cost,="" fee,="" or="" any="" adjustment="" thereof,="" any="" charge="" or="" reserve="" for="" insurance="" (including="" any="" self-insurance="" fund="" or="" reserve)="" covering="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" except="" to="" the="" extent="" the="" government="" might="" have="" expressly="" required="" the="" contractor="" to="" carry="" such="" insurance="" under="" another="" provision="" of="" this="" contract.="" (12)="" in="" the="" event="" the="" contractor="" is="" reimbursed="" or="" otherwise="" compensated="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property,="" the="" contractor="" shall="" use="" the="" proceeds="" to="" repair,="" renovate,="" or="" replace="" such="" property="" or="" equitably="" reimburse="" the="" government,="" as="" directed="" by="" the="" contracting="" officer,="" and="" adjust="" the="" property="" records="" accordingly.="" (13)="" the="" contractor="" shall="" do="" nothing="" to="" prejudice="" the="" government's="" rights="" to="" recover="" against="" third="" parties="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property.="" when="" requested="" by="" the="" contracting="" officer,="" the="" contractor="" shall,="" at="" government="" expense,="" furnish="" to="" the="" government="" all="" reasonable="" assistance="" and="" cooperation="" (including="" the="" prosecution="" of="" suit="" and="" the="" execution="" of="" instruments="" of="" assignment="" in="" favor="" of="" the="" government)="" in="" obtaining="" recovery.="" (g)="" maintenance="" responsibilities.="" (1)="" the="" contractor="" is="" responsible="" for="" the="" maintenance="" of="" government="" property="" in="" its="" possession,="" including="" government="" property="" stored="" at="" a="" contractor="" managed="" site.="" the="" contractor="" shall="" perform="" all="" maintenance,="" including="" preventive="" maintenance,="" necessary="" to="" assure="" that="" such="" property="" remains="" suitable="" for="" its="" intended="" use="" unless="" the="" contracting="" officer="" specifically="" relieves="" the="" contractor="" of="" its="" maintenance="" responsibility="" for="" a="" particular="" item="" or="" class="" of="" items.="" if="" routine="" and="" preventive="" maintenance="" are="" not="" sufficient="" to="" sustain="" a="" property="" item's="" suitability="" for="" intended="" use,="" the="" contractor="" shall="" notify="" the="" contracting="" officer="" promptly="" and="" request="" direction="" regarding="" repair="" or="" replacement.="" (2)="" the="" contractor="" shall="" notify="" promptly="" the="" government's="" property="" administrator="" of="" the="" need="" for="" any="" replacement="" or="" rehabilitation="" of,="" or="" major="" repair="" to,="" government="" property="" discovered="" during="" its="" maintenance="" activities="" and="" shall="" not="" effect="" such="" repair,="" replacement,="" or="" rehabilitation="" unless="" authorized="" to="" do="" so="" by="" the="" contracting="" officer.="" (h)="" disposal="" of="" government="" property--(1)="" predisposal="" requirements.="" upon="" determining="" that="" it="" no="" longer="" needs="" a="" government="" property="" item="" or="" items="" for="" contract="" performance,="" the="" contractor="" shall,="" in="" order="" of="" precedence--="" (i)="" make="" reasonable="" efforts="" to="" return="" unused="" property="" acquired="" for="" performance="" of="" this="" contract="" to="" the="" appropriate="" supplier="" at="" acquisition="" cost="" (less,="" if="" applicable,="" a="" reasonable="" restocking="" fee="" that="" is="" consistent="" with="" the="" supplier's="" customary="" practices)="" and="" credit="" the="" contract="" estimated="" or="" target="" cost="" with="" the="" proceeds="" of="" such="" returns;="" (ii)="" make="" reasonable="" efforts="" to="" use="" property="" acquired="" or="" fabricated="" for="" performance="" of="" this="" contract="" in="" performance="" of="" other="" government="" or="" nongovernmental="" contracts="" and="" credit="" the="" contract="" estimated="" or="" target="" cost="" by="" the="" property's="" acquisition="" cost;="" or="" (iii)="" prepare,="" and="" submit="" to="" the="" government's="" plant="" clearance="" officer,="" inventory="" disposal="" schedules="" in="" accordance="" with="" paragraphs="" (h)(2)="" through="" (h)(4)="" of="" this="" clause.="" (2)="" inventory="" disposal="" schedules.="" except="" as="" provided="" in="" paragraph="" (h)(3)="" of="" this="" clause,="" the="" contractor="" shall="" identify="" government="" property="" no="" longer="" required="" for="" performance="" of="" this="" contract="" using="" standard="" form="" 1428,="" ``inventory="" disposal="" schedule.''="" unless="" the="" plant="" clearance="" officer="" has="" agreed="" to="" a="" different="" submission="" basis="" or="" the="" contract="" requires="" inventory="" disposal="" schedules="" to="" be="" submitted="" electronically,="" the="" contractor="" shall="" prepare="" separate="" inventory="" disposal="" schedules="" for:="" special="" test="" equipment="" with="" general="" purpose="" components;="" special="" test="" equipment="" that="" does="" not="" contain="" general="" purpose="" components;="" printing="" equipment;="" automatic="" data="" processing="" equipment;="" nonnuclear="" hazardous="" materials;="" and,="" nuclear="" materials.="" property="" with="" the="" same="" description,="" condition="" code,="" and="" reporting="" location="" may="" be="" grouped="" in="" a="" single="" line="" item.="" special="" test="" equipment="" shall="" be="" described="" in="" sufficient="" detail="" to="" permit="" an="" understanding="" of="" the="" special="" test="" equipment's="" intended="" use.="" the="" contractor="" may="" annotate="" the="" schedule="" to="" identify="" test="" equipment="" the="" contractor="" wishes="" [[page="" 30209]]="" to="" purchase="" from="" the="" government="" or="" general="" purpose="" components="" thereof="" that="" the="" contractor="" wishes="" to="" purchase="" or="" use="" in="" the="" performance="" of="" other="" government="" contracts.="" (3)="" scrap="" lists.="" contractors="" that="" have="" government-approved="" scrap="" procedures="" may="" prepare="" scrap="" lists="" (provided="" the="" lists="" are="" consistent="" with="" the="" approved="" scrap="" procedures),="" in="" lieu="" of="" inventory="" disposal="" schedules,="" except="" for="" scrap="" that--="" (i)="" requires="" demilitarization;="" (ii)="" is="" a="" classified="" item;="" (iii)="" is="" generated="" from="" classified="" items;="" (iv)="" contains="" hazardous="" materials;="" or="" (v)="" is="" dangerous="" to="" the="" public="" health,="" safety,="" or="" welfare.="" (4)="" corrections.="" if="" the="" plant="" clearance="" officer="" finds="" that="" property="" identified="" on="" an="" inventory="" disposal="" schedule="" or="" scrap="" list="" is="" not="" accountable="" under="" this="" contract,="" or="" is="" not="" in="" the="" quantity="" or="" condition="" indicated="" on="" the="" inventory="" disposal="" schedule="" or="" scrap="" list,="" he="" or="" she="" may="" require="" the="" contractor="" to="" correct="" the="" inventory="" disposal="" schedule="" or="" list,="" may="" reject="" such="" schedules="" or="" lists="" at="" any="" time,="" or="" may="" require="" submission="" of="" an="" inventory="" disposal="" schedule="" in="" lieu="" of="" a="" scrap="" list.="" (5)="" submission="" requirements.="" inventory="" disposal="" schedules="" or="" scrap="" lists="" shall="" be="" submitted="" to="" the="" plant="" clearance="" officer="" no="" later="" than--="" (i)="" thirty="" (30)="" days="" following="" the="" contractor's="" determination="" that="" a="" government="" property="" item="" is="" no="" longer="" required="" for="" performance="" of="" the="" contract;="" (ii)="" sixty="" (60)="" days="" following="" completion="" of="" contract="" deliveries="" or="" performance="" or="" such="" longer="" period="" as="" may="" be="" approved="" by="" the="" plant="" clearance="" officer;="" or="" (iii)="" one="" hundred="" twenty="" (120)="" days="" following="" contract="" termination="" in="" whole="" or="" in="" part="" or="" such="" longer="" period="" as="" may="" be="" approved="" by="" the="" contracting="" officer.="" (6)="" inventory="" schedule="" adjustments.="" the="" contractor="" shall="" provide="" the="" plant="" clearance="" officer="" at="" least="" 10="" working="" days="" advance="" written="" notice="" of="" its="" intent="" to="" remove="" a="" property="" item,="" including="" an="" item="" identified="" as="" scrap,="" from="" an="" approved="" inventory="" disposal="" schedule.="" unless="" the="" plant="" clearance="" officer="" objects="" to="" the="" intended="" schedule="" adjustment="" within="" the="" notice="" period,="" the="" contractor="" may="" make="" the="" adjustment="" upon="" expiration="" of="" the="" notice="" period.="" (7)="" storage.="" the="" contractor="" shall="" store="" the="" property="" identified="" in="" an="" inventory="" disposal="" schedule="" pending="" receipt="" of="" disposal="" instructions.="" if="" the="" government="" fails="" to="" provide="" disposal="" instructions="" within="" 120="" days="" following="" receipt="" of="" an="" acceptable="" inventory="" disposal="" schedule,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" for="" costs="" incurred="" to="" store="" such="" property="" on="" or="" after="" the="" 121st="" day="" following="" receipt="" of="" an="" acceptable="" schedule.="" (8)="" disposal.="" except="" as="" provided="" in="" (h)(8)(i),="" government="" property="" may="" not="" be="" disposed="" of="" until="" the="" contractor="" has="" been="" authorized="" to="" do="" so="" by="" the="" plant="" clearance="" officer.="" (i)="" if="" the="" government="" does="" not="" provide="" disposition="" instructions="" to="" the="" contractor="" within="" 60="" days="" following="" receipt="" of="" an="" acceptable="" scrap="" list,="" the="" contractor="" may="" dispose="" of="" the="" listed="" scrap.="" (ii)="" the="" contractor="" shall="" prepare="" for="" shipment,="" deliver="" f.o.b.="" origin,="" or="" dispose="" of="" government="" property="" as="" directed="" by="" the="" plant="" clearance="" officer.="" the="" contractor="" shall="" remove="" and="" destroy="" any="" markings="" identifying="" the="" property="" as="" government="" property="" when="" the="" plant="" clearance="" officer="" directs="" disposal="" by="" sale="" or="" donation,="" notifies="" the="" contractor="" that="" the="" government="" has="" abandoned="" the="" property,="" or="" directs="" the="" contractor="" to="" scrap="" the="" property.="" (iii)="" the="" contractor="" shall="" credit="" the="" net="" proceeds="" from="" a="" disposal="" of="" scrapped="" government="" property="" to="" the="" contract="" under="" which="" the="" government="" property="" is="" accountable="" or,="" when="" scrapped="" government="" furnished="" property="" is="" not="" segregable="" from="" other="" scrap,="" to="" an="" appropriate="" overhead="" account.="" the="" contractor="" shall="" credit="" the="" net="" proceeds="" of="" other="" disposal="" actions="" in="" accordance="" with="" instructions="" provided="" by="" the="" plant="" clearance="" officer.="" (iv)="" the="" contracting="" officer="" may="" require="" the="" contractor="" to="" demilitarize="" the="" property="" prior="" to="" shipment="" or="" disposal.="" any="" equitable="" adjustment="" incident="" to="" the="" contracting="" officer's="" direction="" to="" demilitarize="" government="" property="" shall="" be="" made="" in="" accordance="" with="" paragraph="" (e)="" of="" this="" clause.="" (9)="" contractor="" removal="" of="" property.="" the="" contractor="" must="" obtain="" the="" plant="" clearance="" officer's="" approval="" to="" remove="" government="" property="" from="" its="" premises="" prior="" to="" receipt="" of="" final="" disposition="" instructions.="" if="" approval="" is="" granted,="" the="" contractor="" shall="" transport="" and="" store="" the="" property="" at="" contractor="" expense.="" the="" storage="" facility="" must="" be="" appropriate="" for="" assuring="" the="" property's="" physical="" safety="" and="" suitability="" for="" use.="" approval="" does="" not="" relieve="" the="" contractor="" of="" responsibility="" for="" such="" property.="" (10)="" subcontractor="" inventory="" disposal="" schedules.="" when="" the="" contractor="" permits="" a="" subcontractor="" or="" supplier="" to="" use="" at="" a="" subcontractor="" or="" supplier="" managed="" site="" government="" property="" furnished="" to="" the="" contractor="" for="" performance="" of="" this="" contract,="" the="" contractor="" shall="" require="" the="" subcontractor="" or="" supplier="" to="" submit="" inventory="" disposal="" schedules="" or="" scrap="" lists="" to="" the="" contractor="" in="" sufficient="" time="" for="" the="" contractor="" to="" comply="" with="" the="" requirements="" of="" paragraph="" (h)(5)="" of="" this="" clause.="" (i)="" abandonment="" and="" restoration="" of="" contractor's="" premises.="" (1)="" the="" government="" shall="" not="" abandon="" at="" a="" contractor-owned="" location="" government="" property="" that="" is="" or="" contains="" a="" hazardous="" material="" without="" the="" contractor's="" written="" concurrence.="" the="" contractor="" may="" request="" an="" equitable="" adjustment="" incident="" to="" such="" agreement.="" (2)="" the="" government,="" upon="" notice="" to="" the="" contractor,="" may="" abandon="" any="" nonhazardous="" government="" property="" in="" place="" at="" which="" time="" all="" obligations="" of="" the="" government="" regarding="" such="" abandoned="" property="" shall="" cease.="" except="" as="" provided="" in="" paragraphs="" (e)(2)="" and="" (i)(1),="" the="" government="" has="" no="" obligation="" to="" restore="" or="" rehabilitate="" the="" contractor's="" premises="" under="" any="" circumstances.="" (j)="" overseas="" contracts.="" in="" a="" contract="" performed="" outside="" the="" united="" states="" of="" america,="" its="" territories,="" or="" possessions,="" the="" words="" ``government''="" and="" ``government="" furnished''="" (wherever="" they="" appear="" in="" this="" clause)="" shall="" be="" construed="" as="" ``united="" states="" government''="" and="" ``united="" states="" government="" furnished,''="" respectively.="" (end="" of="" clause)="" alternate="" i="" (date).="" as="" prescribed="" in="" 45.102(d),="" renumber="" the="" text="" of="" paragraph="" (d)="" as="" subparagraph="" (d)(1)="" and="" add="" subparagraph="" (2)="" to="" paragraph="" (d)="" of="" the="" basic="" clause:="" (d)="" title="" to="" contractor="" acquired="" or="" fabricated="" property.="" (2)="" title="" to="" equipment="" or="" other="" tangible="" personal="" property="" (both="" hereinafter="" referred="" to="" as="" tangible="" property)="" purchased="" with="" government="" funds="" provided="" for="" the="" conduct="" of="" basic="" or="" applied="" research="" vests="" with="" the="" government="" unless="" otherwise="" specified="" in="" this="" contract.="" with="" the="" contracting="" officer's="" approval="" prior="" to="" purchase,="" the="" contractor="" shall="" have="" title="" to="" each="" such="" tangible="" property="" item="" having="" an="" acquisition="" cost="" less="" than="" $5,000.="" the="" contractor="" shall="" furnish="" the="" contracting="" officer="" a="" list="" of="" all="" purchased="" tangible="" property="" within="" 10="" days="" following="" the="" end="" of="" the="" calendar="" quarter="" during="" which="" the="" contractor="" receives="" the="" property.="" the="" contractor="" agrees="" that="" it="" will="" not="" allocate="" depreciation="" or="" amortization="" costs="" for="" such="" tangible="" property="" to="" any="" existing="" or="" future="" government="" contract="" and="" such="" tangible="" property="" may="" be="" used="" by="" the="" government="" or="" its="" subcontractors="" without="" charge="" in="" performance="" of="" any="" government="" contract="" or="" subcontract="" thereunder.="" as="" a="" condition="" for="" obtaining="" title="" to="" tangible="" property="" under="" this="" clause,="" the="" contractor,="" by="" signing="" this="" contract,="" agrees="" that--="" ``no="" person="" in="" the="" united="" states="" shall="" on="" the="" ground="" of="" race,="" color,="" or="" national="" origin,="" be="" excluded="" from="" participation="" in,="" be="" denied="" the="" benefits="" of,="" or="" be="" otherwise="" subjected="" to="" discrimination="" under="" this="" contemplated="" financial="" assistance="" (title="" to="" equipment="" or="" other="" tangible="" personal="" property).''="" 52.245-5="" rental="" charges="" for="" commercial="" use.="" as="" prescribed="" in="" 45.102(c),="" insert="" the="" following="" clause:="" rental="" charges="" for="" commercial="" use="" (date)="" (a)="" definitions.="" as="" used="" in="" this="" clause--="" base="" cost="" means="" the="" acquisition="" cost="" recorded="" in="" the="" contractor's="" property="" control="" system="" or,="" in="" the="" absence="" of="" such="" record,="" the="" value="" attributed="" by="" the="" government="" to="" a="" government="" property="" item="" for="" purposes="" of="" determining="" a="" reasonable="" rental="" charge.="" government="" property="" means="" property="" owned="" or="" leased="" by="" the="" government.="" real="" property="" means="" land="" and="" rights="" in="" land,="" ground="" improvements,="" utility="" distribution="" systems,="" and="" buildings="" and="" other="" structures.="" it="" does="" not="" include="" foundations="" and="" other="" work="" necessary="" for="" installing="" special="" tooling,="" special="" test="" equipment,="" or="" equipment.="" rental="" period="" means="" the="" calendar="" period="" during="" which="" government="" property="" is="" made="" available="" for="" commercial="" purposes.="" rental="" time="" means="" the="" number="" of="" hours,="" to="" the="" nearest="" whole="" hour,="" rented="" property="" is="" actually="" used="" for="" commercial="" purposes.="" it="" includes="" time="" to="" set="" up="" the="" property="" for="" such="" purposes,="" perform="" required="" maintenance,="" and="" restore="" the="" property="" to="" its="" condition="" prior="" to="" rental="" (less="" normal="" wear="" and="" tear).="" (b)="" general--(1)="" rental="" requests="" must="" be="" submitted="" to="" the="" administrative="" contracting="" officer,="" identify="" the="" property="" for="" which="" rental="" [[page="" 30210]]="" is="" requested,="" propose="" a="" rental="" period,="" and="" calculate="" an="" estimated="" rental="" charge="" by="" using="" the="" contractor's="" best="" estimate="" of="" rental="" time="" in="" the="" formulae="" described="" in="" paragraph="" (c)="" of="" this="" clause.="" (2)="" the="" contractor="" shall="" not="" use="" government="" property="" for="" commercial="" purposes,="" including="" independent="" research="" and="" development,="" until="" a="" rental="" charge="" for="" real="" property,="" or="" estimated="" rental="" charge="" for="" other="" property,="" is="" agreed="" upon.="" rented="" property="" shall="" be="" used="" only="" on="" a="" noninterference="" basis.="" (c)="" rental="" charge--(1)="" real="" property="" and="" associated="" fixtures.="" (i)="" the="" contractor="" shall="" obtain,="" at="" its="" expense,="" a="" property="" appraisal="" from="" an="" independent="" licensed,="" accredited,="" or="" certified="" appraiser="" that="" computes="" a="" monthly,="" daily,="" or="" hourly="" rental="" rate="" for="" comparable="" commercial="" property.="" the="" appraisal="" may="" be="" used="" to="" compute="" rentals="" under="" this="" clause="" throughout="" its="" effective="" period="" or,="" if="" an="" effective="" period="" is="" not="" stated="" in="" the="" appraisal,="" for="" 1="" year="" following="" the="" date="" the="" appraisal="" was="" performed.="" the="" contractor="" shall="" submit="" the="" appraisal="" to="" the="" administrative="" contracting="" officer="" at="" least="" 30="" days="" prior="" to="" the="" date="" the="" property="" is="" needed="" for="" commercial="" use.="" except="" as="" provided="" in="" paragraph="" (c)(1)(iii)="" of="" this="" clause,="" the="" administrative="" contracting="" officer="" shall="" use="" the="" appraisal="" rental="" rate="" to="" determine="" a="" reasonable="" rental="" charge.="" (ii)="" rental="" charges="" shall="" be="" determined="" by="" multiplying="" the="" rental="" time="" by="" the="" appraisal="" rental="" rate="" expressed="" as="" a="" rate="" per="" hour.="" monthly="" or="" daily="" appraisal="" rental="" rates="" shall="" be="" divided="" by="" 720="" or="" 24,="" respectively,="" to="" determine="" an="" hourly="" rental="" rate.="" (iii)="" when="" the="" administrative="" contracting="" officer="" has="" reason="" to="" believe="" the="" appraisal="" rental="" rate="" is="" not="" reasonable,="" he="" or="" she="" shall="" promptly="" notify="" the="" contractor="" and="" provide="" his="" or="" her="" rationale.="" the="" parties="" may="" agree="" on="" an="" alternate="" means="" for="" computing="" a="" reasonable="" rental="" charge.="" (2)="" other="" government="" property.="" the="" contractor="" may="" elect="" to="" calculate="" the="" final="" rental="" charge="" using="" the="" appraisal="" method="" described="" in="" paragraph="" (c)(1)="" of="" this="" clause="" subject="" to="" the="" constraints="" therein="" or="" the="" following="" formula="" in="" which="" rental="" time="" shall="" be="" expressed="" in="" increments="" of="" not="" less="" than="" 1="" hour="" with="" portions="" of="" hours="" rounded="" to="" the="" next="" higher="" hour--="" [graphic]="" [tiff="" omitted]="" tp02jn97.141="" (3)="" alternate="" methodology.="" the="" contractor="" may="" request="" consideration="" of="" an="" alternate="" basis="" for="" computing="" the="" rental="" charge="" if="" it="" considers="" the="" monthly="" rental="" rate="" or="" a="" time="" based="" rental="" unreasonable="" or="" impractical.="" (d)="" rental="" payments.="" (1)="" rent="" is="" due="" at="" the="" time="" and="" place="" specified="" by="" the="" contracting="" officer.="" if="" a="" time="" is="" not="" specified,="" the="" rental="" is="" due="" 60="" days="" following="" completion="" of="" the="" rental="" period.="" the="" contractor="" shall="" calculate="" the="" rental="" due,="" and="" furnish="" records="" or="" other="" supporting="" data="" in="" sufficient="" detail="" to="" permit="" the="" administrative="" contracting="" officer="" to="" verify="" the="" rental="" time="" and="" computation.="" unless="" otherwise="" permitted="" by="" law,="" payment="" shall="" be="" made="" by="" check="" payable="" to="" the="" treasurer="" of="" the="" united="" states="" and="" sent="" to="" the="" contract="" administration="" office="" identified="" in="" this="" contract="" or="" by="" electronic="" funds="" transfer="" to="" that="" office.="" (2)="" interest="" will="" be="" charged="" if="" payment="" is="" not="" made="" by="" the="" specified="" payment="" date="" or,="" in="" the="" absence="" of="" a="" specified="" date,="" the="" 61st="" day="" following="" completion="" of="" the="" rental="" period.="" interest="" will="" accrue="" at="" the="" ``renegotiation="" board="" interest="" rate''="" (published="" in="" the="" federal="" register="" semiannually="" on="" or="" about="" january="" 1st="" and="" july="" 1st)="" for="" the="" period="" in="" which="" the="" rent="" is="" due.="" (3)="" the="" government's="" acceptance="" of="" any="" rental="" payment="" under="" this="" clause,="" in="" whole="" or="" in="" part,="" shall="" not="" be="" construed="" as="" a="" waiver="" or="" relinquishment="" of="" any="" rights="" it="" may="" have="" against="" the="" contractor="" stemming="" from="" the="" contractors="" unauthorized="" use="" of="" government="" property="" or="" any="" other="" failure="" to="" perform="" this="" contract="" according="" to="" its="" terms.="" (e)="" use="" revocation.="" at="" any="" time="" during="" the="" rental="" period,="" the="" government="" may="" revoke="" commercial="" use="" authorization="" and="" require="" the="" contractor,="" at="" the="" contractor's="" expense,="" to="" return="" the="" property="" to="" the="" government,="" restore="" the="" property="" to="" its="" pre-rental="" condition="" (less="" normal="" wear="" and="" tear),="" or="" both.="" (f)="" unauthorized="" use.="" the="" unauthorized="" use="" of="" government="" property="" can="" subject="" a="" person="" to="" fines,="" imprisonment,="" or="" both,="" under="" 18="" u.s.c.="" 641.="" (end="" of="" clause)="" 52.245-6="" government="" property--property="" management="" contracts.="" as="" prescribed="" in="" 45.102(e),="" insert="" the="" following="" clause:="" government="" property--property="" management="" contracts="" (date)="" (a)="" definitions.="" the="" ``government="" property="" control''="" clause="" of="" this="" contract,="" 52.245-3,="" defines="" certain="" terms="" used="" in="" section="" 52.245.="" when="" a="" term="" defined="" in="" 52.245-3="" is="" used="" in="" this="" clause,="" it="" has="" the="" same="" meaning="" as="" when="" used="" in="" 52.245-3.="" (b)="" authorized="" use.="" in="" consideration="" of="" the="" contractors="" expenditures="" to="" manage="" and="" maintain="" the="" government="" property="" identified="" in="" this="" contract,="" the="" contractor="" is="" authorized="" to="" use="" and="" to="" have="" its="" subcontractors="" use="" such="" property="" without="" charge="" for="" performance="" of="" the="" contracting="" agency's="" contracts="" at="" the="" location="" specified="" in="" this="" contract="" (hereinafter="" referred="" to="" as="" the="" specified="" location).="" (1)="" costs="" incurred="" by="" the="" contractor="" to="" manage="" or="" maintain="" government="" property="" at="" the="" specified="" location="" shall="" not="" be="" allocated="" as="" direct="" costs="" to="" this="" or="" any="" other="" government="" contract.="" (2)="" if="" the="" contractor="" elects="" to="" use="" inactive="" property="" stored="" at="" the="" specified="" location="" or="" property="" specially="" preserved="" at="" that="" location,="" the="" costs="" to="" make="" such="" property="" ready="" for="" contractor="" use="" and="" to="" return="" the="" property="" to="" its="" stored="" or="" preserved="" condition="" shall="" be="" entirely="" at="" contractor="" expense.="" (c)="" use="" restrictions.="" (1)="" the="" property="" identified="" in="" this="" contract="" is="" available="" for="" use="" by="" the="" contractor="" on="" an="" ``as="" is''="" basis.="" the="" government="" makes="" no="" warranty,="" express="" or="" implied,="" regarding="" the="" property's="" condition="" or="" fitness="" for="" use="" for="" any="" purpose.="" if="" authorized="" by="" the="" contracting="" officer="" to="" make="" such="" property="" suitable="" for="" the="" contractor's="" intended="" use,="" the="" contractor="" shall="" bear="" the="" cost="" of="" modifying,="" repairing,="" or="" otherwise="" altering="" the="" property.="" such="" modifications,="" repairs,="" or="" alterations="" do="" not="" affect="" the="" government's="" title="" in="" the="" property.="" (2)="" the="" contractor="" shall="" not--="" (i)="" acquire="" or="" fabricate="" property="" for="" the="" government="" under="" this="" contract="" except="" as="" provided="" in="" paragraph="" (h)(3),="" (h)(4),="" or="" (i)(9)="" of="" this="" clause.="" (ii)="" improve="" or="" make="" structural="" alterations="" to="" real="" property="" identified="" in="" this="" contract="" unless="" expressly="" authorized="" to="" do="" so="" in="" writing="" by="" the="" contracting="" officer.="" title="" to="" such="" improvements="" or="" alterations="" shall="" vest="" in="" the="" government.="" (iii)="" except="" for="" property="" maintenance="" actions="" required="" by="" this="" contract,="" modify,="" repair,="" or="" alter="" the="" property="" identified="" in="" this="" contract="" in="" any="" manner="" without="" the="" contracting="" officer's="" prior="" written="" approval.="" (3)="" the="" contractor="" shall="" not="" use="" the="" property="" identified="" in="" this="" contract="" to="" perform="" contracts="" for="" another="" government="" agency,="" use="" such="" property="" at="" a="" location="" other="" than="" the="" specified="" location,="" or="" use="" such="" property="" for="" commercial="" purposes="" without="" the="" contracting="" officer's="" written="" authorization.="" (4)="" if="" the="" contracting="" officer="" authorizes="" use="" of="" the="" property="" identified="" in="" this="" contract="" for="" commercial="" purposes,="" the="" contractor="" shall="" pay="" a="" rental="" determined="" by="" the="" ``rental="" charges="" for="" commercial="" use''="" clause="" of="" this="" contract.="" the="" terms="" and="" conditions="" of="" that="" clause="" shall="" apply="" to="" each="" rental.="" other="" consideration="" may="" be="" negotiated="" when="" permitted="" by="" law.="" the="" contractor="" shall="" return="" the="" property="" to="" the="" government="" in="" the="" same="" or="" better="" condition="" (less="" normal="" wear="" and="" tear)="" than="" when="" commercial="" use="" was="" authorized.="" (d)="" accountability="" and="" liability.="" the="" property="" identified="" in="" this="" contract="" is="" accountable="" under="" this="" contract="" notwithstanding="" an="" authorized="" use="" for="" performance="" of="" other="" government="" contracts.="" except="" as="" provided="" in="" paragraph="" (c)(4),="" liability="" for="" loss,="" theft,="" or="" damage="" to,="" or="" destruction="" of,="" the="" identified="" property="" occurring="" during="" an="" authorized="" use="" shall="" be="" determined="" by="" this="" clause.="" (e)="" title.="" (1)="" the="" government="" has="" and="" retains="" title="" to="" the="" government="" property="" identified="" in="" this="" contract.="" (2)="" title="" to="" property="" or="" components="" thereof="" replaced="" by="" the="" contractor,="" when="" [[page="" 30211]]="" replacement="" is="" ordered="" by="" the="" government="" or="" is="" the="" contractor's="" responsibility="" under="" the="" contract's="" maintenance="" requirements,="" shall="" pass="" to="" and="" vest="" in="" the="" government="" upon="" the="" contractor's="" receipt="" or="" fabrication="" of="" the="" replacement="" item="" or="" component.="" (3)="" the="" contractor="" shall="" keep="" the="" government's="" property="" free="" and="" clear="" of="" all="" liens="" and="" encumbrances.="" (4)="" the="" contractor="" may,="" at="" its="" expense="" and="" with="" the="" prior="" written="" approval="" of="" the="" contracting="" officer,="" arrange="" or="" rearrange="" government="" property="" at="" the="" specified="" location="" or="" install="" contractor-="" owned="" equipment="" or="" other="" personal="" property="" at="" the="" specified="" location="" provided="" such="" property="" is="" readily="" removable,="" removal="" will="" not="" damage="" the="" government="" property,="" and="" its="" installation="" or="" removal="" will="" not="" diminish="" the="" government's="" ability="" to="" use="" the="" property="" for="" governmental="" purposes.="" title="" to="" contractor-owned="" personal="" property="" installed="" at="" the="" specified="" location="" shall="" remain="" in="" the="" contractor="" even="" though="" the="" contractor="" property="" may="" be="" attached="" to="" real="" property="" owned="" by="" the="" government="" unless="" the="" contracting="" officer="" determines="" that="" it="" is="" so="" permanently="" attached="" that="" removal="" would="" cause="" substantial="" damage="" to="" government="" property.="" (f)="" property="" adjustments.="" (1)="" the="" contracting="" officer="" may="" decrease="" or="" substitute="" other="" government="" property="" for="" the="" property="" identified="" in="" this="" contract.="" the="" contractor="" shall="" not="" be="" entitled="" to="" any="" adjustment="" in="" the="" terms="" and="" conditions="" of="" this="" contract="" incident="" to="" such="" decrease="" or="" substitution.="" if="" a="" decrease="" or="" substitution="" affects="" real="" property="" or="" equipment="" that="" has="" been="" authorized="" for="" use="" in="" performance="" of="" another="" government="" contract="" at="" the="" specified="" location,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" under="" the="" affected="" contract.="" (2)="" the="" government="" reserves="" the="" right="" to="" position="" additional="" property="" at="" the="" specified="" location.="" such="" property="" is="" not="" subject="" to="" the="" provisions="" of="" this="" contract.="" if="" the="" parties="" agree="" to="" modify="" the="" contract="" to="" include="" such="" additional="" property,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment.="" (g)="" equitable="" adjustments.="" equitable="" adjustments="" under="" this="" contract="" shall="" be="" the="" contractor's="" exclusive="" remedy="" for="" government="" actions="" under="" this="" clause="" and="" shall="" be="" made="" in="" accordance="" with="" the="" procedures="" of="" the="" changes="" clause.="" the="" government="" shall="" not="" be="" liable="" to="" suit="" for="" breach="" of="" contract="" for--="" (1)="" an="" increase="" or="" decrease="" in,="" or="" substitution="" of="" other="" government="" property="" for,="" the="" property="" specified="" in="" this="" contract;="" or="" (2)="" failure="" to="" repair="" or="" replace="" government="" property="" when="" the="" government="" is="" responsible="" for="" repair="" or="" replacement.="" (h)="" maintenance="" requirements.="" (1)="" the="" contractor="" is="" responsible="" for="" establishing="" and="" maintaining="" a="" program="" for="" the="" protection,="" preservation,="" maintenance="" (including="" preventative="" maintenance),="" and="" repair="" of="" the="" government="" property="" identified="" in="" this="" contract.="" at="" a="" minimum,="" the="" program="" shall="" assure="" that="" property--="" (i)="" authorized="" for="" use="" in="" the="" performance="" of="" government="" contracts="" is="" returned="" to="" the="" government="" in="" the="" same="" (less="" normal="" wear="" and="" tear)="" or="" better="" condition="" than="" when="" authorized="" for="" use;="" and="" (ii)="" is="" stored="" or="" preserved="" for="" the="" government="" as="" required="" by="" this="" contract="" or,="" in="" the="" absence="" of="" a="" contractual="" requirement,="" sound="" industrial="" practice.="" (2)="" the="" contractor="" shall="" submit="" with="" its="" response="" to="" the="" solicitation="" for="" this="" contract,="" or="" at="" the="" time="" specified="" by="" the="" contracting="" officer,="" a="" written="" proposed="" maintenance="" management="" plan.="" the="" plan="" shall="" include="" the="" contractor's="" recommended="" maintenance="" requirements,="" recommended="" property="" condition="" codes,="" proposed="" procedures="" for="" scheduling="" maintenance="" to="" be="" performed="" and="" recording="" maintenance="" accomplished,="" and="" proposed="" procedures="" for="" the="" prompt="" disclosure="" and="" reporting="" to="" the="" government="" of="" any="" property="" repair="" or="" rehabilitation="" that="" is="" not="" the="" contractor's="" responsibility="" under="" this="" contract.="" subject="" to="" approval="" by="" the="" contracting="" officer,="" the="" proposed="" program="" will="" be="" incorporated="" into="" the="" contract="" as="" the="" contract's="" maintenance="" requirements.="" (3)="" if="" the="" maintenance="" required="" by="" this="" contract="" proves="" insufficient="" to="" sustain="" a="" property="" item="" in="" a="" condition="" comparable="" to="" the="" property's="" condition="" at="" the="" time="" contractor="" use="" was="" authorized,="" the="" contractor="" shall="" notify="" the="" contracting="" officer="" promptly="" and="" request="" direction="" regarding="" repair="" or="" replacement.="" the="" government="" has="" no="" obligation="" to="" repair="" or="" replace,="" or="" have="" the="" contractor="" repair="" or="" replace,="" such="" property.="" repairs="" or="" replacements="" made="" by="" the="" contractor="" without="" the="" contracting="" officer's="" authorization="" are="" made="" entirely="" at="" contractor="" expense.="" (4)="" the="" contractor="" shall="" notify="" promptly="" the="" government's="" property="" administrator="" of="" the="" need="" for="" any="" replacement="" or="" rehabilitation="" of,="" or="" major="" repair="" to,="" government="" property="" discovered="" during="" its="" maintenance="" activities="" and="" shall="" not="" effect="" such="" repair,="" replacement,="" or="" rehabilitation="" unless="" authorized="" to="" do="" so="" by="" the="" contracting="" officer.="" (i)="" limited="" risk="" of="" loss.="" (1)="" the="" contractor's="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" accountable="" under="" this="" contract="" shall="" be="" limited="" if="" the="" contractor="" maintains="" a="" property="" control="" system="" that="" satisfies="" the="" requirements="" of="" the="" government="" property="" control="" clause="" of="" this="" contract="" (hereinafter="" referred="" to="" as="" an="" approved="" system).="" (2)="" when="" the="" contractor="" maintains="" an="" approved="" system,="" the="" contractor="" shall="" not="" be="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property="" accountable="" under="" this="" contract="" except="" loss,="" theft,="" destruction,="" or="" damage="" for="" which="" the="" contractor="" is="" expressly="" responsible="" under="" the="" terms="" of="" this="" contract="" or="" loss,="" theft,="" destruction,="" or="" damage="" that="" results="" from--="" (i)="" a="" risk="" expressly="" required="" to="" be="" insured="" under="" this="" contract="" but="" only="" to="" the="" extent="" of="" the="" insurance="" required="" to="" be="" purchased="" and="" maintained,="" or="" to="" the="" extent="" of="" insurance="" actually="" purchased="" and="" maintained,="" whichever="" is="" greater;="" (ii)="" a="" risk="" that="" is,="" in="" fact,="" covered="" by="" insurance="" or="" for="" which="" the="" contractor="" is="" otherwise="" reimbursed,="" but="" only="" to="" the="" extent="" of="" such="" insurance="" or="" reimbursement;="" or="" (iii)="" willful="" misconduct="" or="" lack="" of="" good="" faith="" on="" the="" part="" of="" the="" contractor's="" managerial="" personnel.="" (3)="" following="" notice="" from="" the="" government's="" property="" administrator="" to="" one="" of="" the="" contractor's="" managerial="" personnel="" that="" the="" contractor's="" or="" a="" subcontractor's="" property="" control="" system="" is="" not="" in="" compliance="" with="" the="" requirements="" of="" the="" government="" property="" control="" clause="" of="" this="" contract,="" the="" contractor's="" failure="" to="" correct="" its="" system="" or="" to="" have="" a="" subcontractor's="" system="" corrected="" within="" the="" dates="" specified="" by="" the="" government's="" property="" administrator,="" or="" such="" other="" mutually="" agreed="" dates,="" shall="" be="" considered="" willful="" misconduct="" or="" lack="" of="" good="" faith="" on="" the="" part="" of="" the="" contractor's="" managerial="" personnel.="" the="" contractor="" shall="" be="" liable="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" the="" government="" property="" accountable="" under="" this="" contract="" except="" such="" loss,="" theft,="" destruction,="" or="" damage="" that="" the="" contractor="" can="" establish="" by="" clear="" and="" convincing="" evidence--="" (i)="" did="" not="" result="" from="" the="" contractor's="" failure="" to="" maintain="" an="" approved="" system;="" or="" (ii)="" occurred="" while="" an="" approved="" system="" was="" maintained="" by="" the="" contractor.="" (4)="" except="" as="" provided="" in="" (i)(3)(i)="" and="" (i)(3)(ii),="" the="" contractor="" shall="" be="" liable="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" the="" property="" identified="" in="" this="" contract="" immediately="" upon="" notice="" by="" certified="" mail="" that="" the="" government="" has="" withdrawn="" approval="" of="" the="" contractor's="" government="" property="" control="" system.="" (5)="" the="" contractor's="" transfer="" of="" government="" property="" identified="" in="" this="" contract="" to="" the="" possession="" or="" control="" of="" a="" subcontractor,="" does="" not="" affect="" the="" contractor's="" liability="" for="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" that="" property.="" (6)="" except="" as="" provided="" in="" paragraph="" (i)(7)="" of="" this="" clause,="" the="" contractor="" shall="" notify="" the="" government's="" property="" administrator="" in="" writing="" promptly="" following="" the="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property.="" such="" notice="" shall="" identify--="" (i)="" lost,="" stolen,="" destroyed,="" or="" damaged="" government="" property="" by="" description,="" contract="" number,="" national="" stock="" number="" (if="" known),="" and="" either="" part="" number="" or="" identification="" number;="" (ii)="" the="" date="" a="" loss="" or="" theft="" was="" discovered="" or="" damage="" or="" destruction="" occurred="" and,="" if="" known,="" the="" circumstances.="" (iii)="" each="" property="" item's="" acquisition="" cost;="" (iv)="" the="" contracts="" affected;="" (v)="" all="" known="" interests="" in="" commingled="" property="" of="" which="" the="" government="" property="" is="" a="" part;="" and="" (vi)="" the="" insurance,="" if="" any,="" covering="" any="" part="" of="" or="" interest="" in="" such="" commingled="" property.="" (7)="" the="" contractor="" is="" not="" required="" to="" provide="" notice="" of="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" low="" value="" property="" which="" the="" contractor="" does="" not="" need="" for="" continued="" performance="" of="" a="" government="" supply="" contract="" at="" the="" specified="" location="" until="" that="" contract="" is="" completed="" or="" terminated.="" such="" notice="" shall="" include="" the="" information="" required="" by="" paragraph="" (i)(6)="" of="" this="" clause.="" (8)="" the="" contractor="" shall="" take="" all="" reasonable="" action="" to="" protect="" damaged="" government="" property="" from="" further="" damage="" and="" to="" [[page="" 30212]]="" physically="" separate="" damaged="" government="" property="" from="" all="" other="" property.="" (9)="" the="" contractor="" shall="" repair,="" renovate,="" or="" take="" such="" other="" action="" with="" respect="" to="" lost,="" stolen,="" damaged,="" or="" destroyed="" government="" property="" as="" the="" contracting="" officer="" directs="" and="" adjust="" the="" property="" records="" accordingly.="" when="" such="" repair,="" renovation,="" or="" action="" is="" not="" the="" contractor's="" responsibility="" under="" this="" contract,="" the="" contractor="" shall="" be="" entitled="" to="" an="" equitable="" price="" adjustment="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" contractor="" responsible="" repairs="" to,="" or="" replacements="" of,="" government="" property="" shall="" be="" accomplished="" at="" no="" change="" in="" the="" cost="" or="" price="" of="" any="" government="" contract.="" (10)="" the="" contractor="" shall="" not="" include="" in="" the="" cost="" or="" price="" of="" any="" government="" contract,="" or="" any="" adjustment="" thereof,="" any="" charge="" or="" reserve="" for="" insurance="" (including="" any="" self-insurance="" fund="" or="" reserve)="" covering="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to="" the="" government="" property="" identified="" in="" this="" contract,="" except="" to="" the="" extent="" the="" government="" might="" have="" expressly="" required="" the="" contractor="" to="" carry="" such="" insurance="" under="" another="" provision="" of="" this="" contract.="" (11)="" if="" the="" contractor="" is="" reimbursed="" or="" otherwise="" compensated="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property,="" the="" contractor="" shall="" use="" the="" proceeds="" to="" repair,="" renovate,="" or="" replace="" such="" property="" or="" equitably="" reimburse="" the="" government,="" as="" directed="" by="" the="" contracting="" officer,="" and="" adjust="" the="" property="" records="" accordingly.="" (12)="" the="" contractor="" shall="" do="" nothing="" to="" prejudice="" the="" government's="" rights="" to="" recover="" against="" third="" parties="" for="" any="" loss,="" theft,="" or="" destruction="" of,="" or="" damage="" to,="" government="" property.="" when="" requested="" by="" the="" contracting="" officer,="" the="" contractor="" shall,="" at="" government="" expense,="" furnish="" to="" the="" government="" all="" reasonable="" assistance="" and="" cooperation="" (including="" the="" prosecution="" of="" suit="" and="" the="" execution="" of="" instruments="" of="" assignment="" in="" favor="" of="" the="" government)="" in="" obtaining="" recovery.="" (j)="" disposal="" of="" government="" property.="" the="" contractor="" shall="" not="" dispose="" of="" government="" property,="" including="" government="" property="" the="" contractor="" has="" identified="" as="" scrap,="" or="" remove="" government="" property="" from="" the="" specified="" location,="" until="" the="" contractor="" has="" been="" authorized="" to="" do="" so="" by="" the="" plant="" clearance="" officer.="" (1)="" the="" contractor="" shall="" submit="" standard="" form="" 1428,="" inventory="" disposal="" schedule,="" to="" the="" plant="" clearance="" officer="" within="" 30="" days="" (or="" such="" longer="" period="" authorized="" by="" the="" plant="" clearance="" officer)="" following--="" (i)="" destruction="" of="" a="" government="" property="" item="" identified="" in="" this="" contract;="" (ii)="" damage="" to="" a="" property="" item="" that="" cannot="" be="" economically="" repaired;="" (iii)="" notice="" from="" the="" contracting="" officer="" that="" the="" government="" will="" not="" repair="" an="" item="" for="" which="" repair="" is="" the="" government's="" responsibility="" under="" this="" contract;="" or="" (iv)="" the="" contractors="" determination="" that="" property="" it="" has="" been="" using="" to="" perform="" other="" contracts="" is="" no="" longer="" required="" for="" the="" performance="" of="" those="" contracts.="" (2)="" unless="" the="" plant="" clearance="" officer="" has="" agreed="" to="" a="" different="" submission="" basis="" or="" the="" contract="" requires="" inventory="" disposal="" schedules="" to="" be="" submitted="" electronically,="" the="" contractor="" shall="" prepare="" separate="" inventory="" disposal="" schedules="" for:="" special="" test="" equipment="" with="" general="" purpose="" components;="" special="" test="" equipment="" that="" does="" not="" contain="" general="" purpose="" components;="" printing="" equipment;="" automatic="" data="" processing="" equipment;="" nonnuclear="" hazardous="" materials;="" and,="" nuclear="" materials.="" property="" with="" the="" same="" description,="" condition="" code,="" and="" reporting="" location="" may="" be="" grouped="" in="" a="" single="" line="" item.="" special="" test="" equipment="" shall="" be="" described="" in="" sufficient="" detail="" to="" permit="" an="" understanding="" of="" the="" special="" test="" equipment's="" intended="" use.="" the="" contractor="" may="" annotate="" the="" schedule="" to="" identify="" test="" equipment="" the="" contractor="" wishes="" to="" purchase="" from="" the="" government="" or="" general="" purpose="" components="" thereof="" the="" contractor="" wishes="" to="" purchase="" or="" use="" in="" the="" performance="" of="" other="" government="" contracts.="" (3)="" contractors="" that="" have="" government-approved="" scrap="" procedures="" may="" prepare="" scrap="" lists="" (provided="" such="" lists="" are="" consistent="" with="" the="" approved="" scrap="" procedures)="" in="" lieu="" of="" inventory="" disposal="" schedules="" except="" for="" scrap="" that--="" (i)="" requires="" demilitarization;="" (ii)="" is="" a="" classified="" item;="" (iii)="" is="" generated="" from="" classified="" items;="" (iv)="" contains="" hazardous="" materials;="" or="" (v)="" is="" dangerous="" to="" the="" public="" health,="" safety,="" or="" welfare.="" (4)="" if="" the="" plant="" clearance="" officer="" finds="" that="" property="" identified="" on="" an="" inventory="" disposal="" schedule="" or="" scrap="" list="" is="" not="" accountable="" under="" this="" contract="" or="" is="" not="" in="" the="" quantity="" or="" condition="" indicated="" on="" the="" inventory="" disposal="" schedule="" or="" scrap="" list,="" he="" or="" she="" may="" require="" the="" contractor="" to="" correct="" the="" inventory="" disposal="" schedule="" or="" scrap="" list,="" may="" reject="" such="" schedules="" or="" lists="" at="" any="" time,="" or="" may="" require="" submission="" of="" an="" inventory="" disposal="" schedule="" in="" lieu="" of="" a="" scrap="" list.="" (5)="" as="" directed="" by="" the="" plant="" clearance="" officer,="" the="" contractor="" shall--="" (i)="" preserve,="" protect,="" or="" store="" the="" property="" identified="" on="" an="" inventory="" disposal="" schedule="" pending="" receipt="" of="" disposal="" instructions;="" (ii)="" prepare="" for="" shipment,="" deliver="" f.o.b.="" origin,="" or="" dispose="" of="" government="" property="" as="" directed="" by="" the="" plant="" clearance="" officer;="" (iii)="" remove="" and="" destroy="" any="" markings="" identifying="" the="" property="" as="" government="" property="" when="" the="" plant="" clearance="" officer="" directs="" disposal="" by="" sale="" or="" donation,="" or="" directs="" the="" contractor="" to="" scrap="" the="" property;="" and="" (iv)="" credit="" the="" proceeds="" from="" a="" disposal="" action="" in="" accordance="" with="" instructions="" provided="" by="" the="" plant="" clearance="" officer.="" (6)="" when="" the="" contractor="" permits="" a="" subcontractor="" or="" supplier="" to="" use="" property="" identified="" in="" this="" contract,="" the="" contractor="" shall="" require="" the="" subcontractor="" or="" supplier="" to="" submit="" inventory="" disposal="" schedules="" or="" scrap="" lists="" to="" the="" contractor="" in="" sufficient="" time="" for="" the="" contractor="" to="" comply="" with="" the="" requirements="" of="" paragraph="" (j)(1)="" of="" this="" clause.="" (7)="" the="" contracting="" officer="" may="" require="" the="" contractor="" to="" demilitarize="" the="" property="" prior="" to="" shipment="" or="" disposal.="" any="" equitable="" adjustment="" incident="" to="" the="" contracting="" officer's="" direction="" to="" demilitarize="" government="" property="" shall="" be="" made="" in="" accordance="" with="" paragraph="" (g)="" of="" this="" clause.="" (k)="" overseas="" contracts.="" in="" a="" contract="" performed="" outside="" the="" united="" states="" of="" america,="" its="" territories,="" or="" possessions,="" the="" words="" ``government''="" and="" ``government="" property'',="" as="" used="" in="" this="" clause,="" mean="" ``united="" states="" government''="" and="" ``united="" states="" government="" property'',="" respectively.="" (end="" of="" clause)="" 52.245-7="" liability="" for="" government="" property="" demolition="" services="" contracts.="" as="" prescribed="" in="" 45.102(g),="" insert="" the="" following="" clause:="" liability="" for="" government="" property--demolition="" services="" contracts="" (date)="" except="" for="" reasonable="" wear="" and="" tear="" incident="" to="" the="" removal="" and="" delivery="" of="" property="" to="" the="" government,="" the="" contractor="" assumes="" the="" risks="" of="" and="" is="" liable="" for="" any="" loss="" or="" destruction="" of="" or="" damage="" to="" property--="" (a)="" required="" to="" be="" delivered="" to="" the="" government;="" and="" (b)="" title="" to="" which="" is="" vested="" in="" the="" contractor="" but="" that="" under="" the="" termination="" clauses="" of="" this="" contract="" is="" revested="" in="" the="" government="" upon="" notice="" of="" termination.="" (end="" of="" clause)="" 52.245-8="" through="" 52.245-19="" [removed]="" 49.="" sections="" 52.245-8="" through="" 52.245-19="" are="" removed.="" 52.246-18="" [amended]="" 50.="" section="" 52.246-18="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause;="" and="" in="" the="" first="" sentence="" of="" paragraph="" (b)(3)="" by="" removing="" the="" word="" ``facilities''="" and="" inserting="" ``government="" property''="" in="" its="" place.="" 51.="" section="" 52.249-2="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause="" and="" paragraphs="" (b)(2)="" and="" (d)="" to="" read="" as="" follows:="" 52.249-2="" termination="" for="" convenience="" of="" the="" government="" (fixed-price).="" *="" *="" *="" *="" *="" termination="" for="" convenience="" of="" the="" government="" (fixed-price)="" (date)="" *="" *="" *="" *="" *="" (b)*="" *="" *="" (2)="" place="" no="" further="" subcontracts="" or="" orders="" (referred="" to="" as="" subcontracts="" in="" this="" clause)="" for="" materials,="" other="" property,="" or="" services,="" except="" as="" necessary="" to="" complete="" the="" continued="" portion="" of="" the="" contract.="" *="" *="" *="" *="" *="" (d)="" if="" the="" government="" fails="" to="" provide="" disposal="" instructions="" within="" 120="" days="" following="" receipt="" of="" an="" acceptable="" termination="" inventory="" schedule,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" for="" costs="" incurred="" to="" store="" such="" property="" on="" or="" after="" the="" 121st="" day="" following="" receipt="" of="" an="" acceptable="" schedule.="" *="" *="" *="" *="" *="" 52.="" section="" 52.249-3="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause="" and="" paragraphs="" (b)(2)="" and="" (d)="" to="" read="" as="" follows:="" [[page="" 30213]]="" 52.249-3="" termination="" for="" convenience="" of="" the="" government="" (dismantling,="" demolition,="" or="" removal="" of="" improvements).="" *="" *="" *="" *="" *="" termination="" for="" convenience="" of="" the="" government="" (dismantling,="" demolition,="" or="" removal="" of="" improvements)="" (date)="" *="" *="" *="" *="" *="" (b)*="" *="" *="" (2)="" place="" no="" further="" subcontracts="" or="" orders="" (referred="" to="" as="" subcontracts="" in="" this="" clause)="" for="" materials,="" other="" property,="" or="" services,="" except="" as="" necessary="" to="" complete="" the="" continued="" portion="" of="" the="" contract.="" *="" *="" *="" *="" *="" (d)="" if="" the="" government="" fails="" to="" provide="" disposal="" instructions="" within="" 120="" days="" following="" receipt="" of="" an="" acceptable="" termination="" inventory="" schedule,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" for="" costs="" incurred="" to="" store="" such="" property="" on="" or="" after="" the="" 121st="" day="" following="" receipt="" of="" an="" acceptable="" schedule.="" *="" *="" *="" *="" *="" 53.="" section="" 52.249-6="" is="" amended="" by="" revising="" the="" date="" of="" the="" clause="" and="" paragraph="" (e)="" to="" read="" as="" follows:="" 52.249-6="" termination="" (cost-reimbursement).="" *="" *="" *="" *="" *="" termination="" (cost-reimbursement)="" (date)="" *="" *="" *="" *="" *="" (e)="" if="" the="" government="" fails="" to="" provide="" disposal="" instructions="" within="" 120="" days="" following="" receipt="" of="" an="" acceptable="" termination="" inventory="" schedule,="" the="" contractor="" might="" be="" entitled="" to="" an="" equitable="" adjustment="" for="" costs="" incurred="" to="" store="" such="" property="" on="" or="" after="" the="" 121st="" day="" following="" receipt="" of="" an="" acceptable="" schedule.="" *="" *="" *="" *="" *="" 54.="" section="" 52.249-11="" is="" revised="" to="" read="" as="" follows:="" 52.249-11="" termination="" of="" use--property="" management="" contracts.="" as="" prescribed="" in="" 49.505(a),="" insert="" the="" following="" clause:="" termination="" of="" use--property="" management="" contracts="" (date)="" (a)="" termination.="" the="" contracting="" officer="" may,="" by="" notice="" to="" the="" contractor="" at="" any="" time,="" completely="" or="" partially="" terminate="" the="" contractor's="" authority="" to="" use,="" or="" have="" its="" subcontractors="" use,="" the="" government="" property="" identified="" in="" this="" contract.="" such="" termination="" shall="" be="" effective="" at="" 12:00="" a.m.="" of="" the="" 15th="" day="" following="" the="" date="" of="" the="" termination="" notice,="" unless="" the="" notice="" specifies="" an="" earlier="" date.="" (b)="" contract="" requirements.="" (1)="" the="" contractor="" is="" not="" required="" to="" manage="" and="" maintain="" the="" government="" property="" identified="" in="" this="" contract="" following="" a="" complete="" termination="" of="" the="" authority="" to="" use="" such="" property.="" if="" the="" contracting="" officer="" requires="" the="" contractor="" to="" manage="" or="" maintain="" the="" property="" subsequent="" to="" a="" notice="" of="" complete="" termination,="" the="" contract="" shall="" be="" equitably="" adjusted.="" (2)="" following="" a="" partial="" termination="" under="" paragraph="" (a)="" of="" this="" clause,="" the="" contractor="" is="" required="" to="" manage="" and="" maintain="" the="" property="" for="" which="" use="" is="" still="" authorized.="" (c)="" price="" adjustments.="" (1)="" the="" contractor="" shall="" not="" be="" entitled="" to="" any="" adjustment="" under="" this="" contract="" incident="" to="" a="" complete="" or="" partial="" termination="" of="" its="" authority="" to="" use,="" or="" have="" its="" subcontractors="" use,="" the="" government="" property="" identified="" in="" this="" contract.="" (2)="" except="" as="" provided="" in="" 52.249-13,="" failure="" to="" perform,="" a="" termination="" under="" paragraph="" (a)="" of="" this="" clause="" might="" entitle="" the="" contractor="" to="" an="" equitable="" adjustment="" in="" the="" price="" (or="" estimated="" cost="" and="" fee)="" of="" contracts="" being="" performed="" at="" the="" specified="" location="" if="" the="" costs="" of="" performance="" under="" such="" contracts="" are="" increased="" by="" the="" termination.="" adjustments="" shall="" be="" determined="" by="" the="" terms="" of="" the="" affected="" contracts.="" such="" adjustments="" shall="" be="" the="" contractor's="" exclusive="" remedy="" for="" government="" actions="" under="" this="" clause.="" the="" government="" shall="" not="" be="" liable="" to="" the="" contractor="" for="" damages="" or="" loss="" of="" profits="" because="" of="" any="" termination="" or="" notice="" of="" termination="" under="" this="" clause.="" (end="" of="" clause)="" 55.="" section="" 52.249-13="" is="" amended="" by="" revising="" the="" introductory="" paragraph="" to="" read="" as="" follows:="" 52.249-13="" failure="" to="" perform.="" as="" prescribed="" in="" 49.505(c),="" insert="" the="" following="" clause="" in="" property="" management="" contracts,="" except="" such="" contracts="" with="" nonprofit="" educational="" institutions:="" *="" *="" *="" *="" *="" 56.="" section="" 52.249-14="" is="" amended="" by="" revising="" the="" second="" and="" fourth="" sentences="" of="" the="" introductory="" paragraph="" to="" read="" as="" follows:="" 52.249-14="" excusable="" delays.="" *="" *="" *="" also="" insert="" the="" clause="" in="" time-and-material="" contracts,="" labor-="" hour="" contracts,="" and="" property="" management="" contracts.="" *="" *="" *="" when="" used="" in="" property="" management="" contracts,="" substitute="" the="" words="" ``termination="" of="" use--property="" management="" contracts''="" for="" ``termination''="" in="" the="" last="" sentence="" of="" the="" clause.="" *="" *="" *="" *="" *="" 57.="" section="" 52.251-1="" is="" amended="" by="" revising="" the="" clause="" to="" read="" as="" follows:="" 52.251-1="" government="" supply="" sources.="" *="" *="" *="" *="" *="" government="" supply="" sources="" (date)="" (a)="" the="" contracting="" officer="" may="" authorize="" the="" contractor="" to="" use="" government="" supply="" sources="" in="" the="" performance="" of="" this="" contract.="" such="" property="" is="" not="" ``government="" furnished="" property''.="" (b)="" title="" to="" property="" acquired="" by="" the="" contractor="" under="" paragraph="" (a)="" of="" this="" clause="" shall="" vest="" for--="" (1)="" fixed-price="" contracts,="" as="" provided="" in="" the="" contract="" financing="" provisions="" and="" the="" clause="" at="" 52.245-2.="" (2)="" cost-type="" contracts,="" as="" provided="" in="" the="" clause="" at="" 52.245-4.="" (3)="" property="" management="" contracts,="" in="" the="" government="" immediately="" upon="" the="" contractor's="" acquisition="" of="" the="" property.="" (end="" of="" clause)="" part="" 53--forms="" 58.="" section="" 53.245="" is="" revised="" to="" read="" as="" follows:="" 53.245="" government="" property.="" the="" following="" forms="" are="" prescribed,="" as="" specified="" in="" this="" section,="" for="" use="" in="" reporting,="" redistribution,="" and="" disposal="" of="" government="" property="" and="" in="" accounting="" for="" this="" property:="" (a)="" sf="" 120="" (gsa),="" report="" of="" excess="" personal="" property,="" and="" sf="" 120-a="" (gsa),="" continuation="" sheet="" (report="" of="" excess="" personal="" property).="" (see="" 45.304-6.)="" (b)="" sf="" 126="" (gsa),="" report="" of="" personal="" property="" for="" sale,="" and="" sf="" 126-="" a="" (gsa),="" report="" of="" personal="" property="" for="" sale="" (continuation="" sheet).="" (see="" 45.304-10.)="" (c)="" sf="" 1422="" (6/97),="" u.s.="" government="" property="" in="" the="" custody="" of="" contractors.="" (see="" 52.245-3(g)(1).)="" sf="" 1422="" is="" authorized="" for="" local="" reproduction="" and="" a="" copy="" is="" furnished="" for="" this="" purpose="" in="" part="" 53="" of="" the="" looseleaf="" edition="" of="" the="" far.="" (d)="" sf="" 1423="" (rev.="" 12/88),="" inventory="" verification="" survey.="" (see="" 45.304-2(b).)="" (e)="" sf="" 1424="" (rev.="" 7/89),="" inventory="" disposal="" report.="" sf="" 1424="" is="" authorized="" for="" local="" reproduction="" and="" a="" copy="" is="" furnished="" for="" this="" purpose="" in="" part="" 53="" of="" the="" looseleaf="" edition="" of="" the="" far.="" (f)="" sf="" 1428="" (rev.="" 6/97),="" inventory="" disposal="" schedule,="" and="" sf="" 1429="" (rev.="" 6/97),="" inventory="" disposal="" schedule="" continuation="" sheet.="" (see="" 52.245-1(j),="" 52.245-4(h),="" and="" 52.245-6(j).)="" standard="" form="" 1428="" and="" standard="" form="" 1429="" are="" authorized="" for="" local="" reproduction="" and="" copies="" are="" furnished="" for="" this="" purpose="" in="" part="" 53="" of="" the="" looseleaf="" edition="" of="" the="" far.="" 59.="" section="" 53.249="" is="" amended="" by="" revising="" paragraph="" (b)="" to="" read="" as="" follows:="" 53.249="" termination="" of="" contracts.="" *="" *="" *="" *="" *="" (b)="" standard="" forms="" 1428,="" inventory="" disposal="" schedule,="" and="" 1429,="" inventory="" disposal="" schedule--continuation="" sheet,="" shall="" be="" used="" to="" support="" termination="" settlement="" proposals="" listed="" in="" paragraph="" (a)="" of="" this="" section="" as="" specified="" in="" 49.602-2.="" 60.="" section="" 53.301-1422="" is="" added="" to="" read="" as="" follows:="" 53.301-1422="" u.s.="" government="" property="" in="" the="" custody="" of="" contractors.="" billing="" code="" 6820-ep-p="" [[page="" 30214]]="" [graphic]="" [tiff="" omitted]="" tp02jn97.132="" [[page="" 30215]]="" [graphic]="" [tiff="" omitted]="" tp02jn97.133="" billing="" code="" 6820-ep-c="" [[page="" 30216]]="" 53.301-1426,="" 53.301-1427,="" and="" 53.301-1430="" through="" 53.301-="" 1434="" [removed]="" 61.="" sections="" 53.301-1426,="" 53.301-1427,="" and="" 53.301-1430="" through="" 53.301-1434="" are="" removed.="" 62.="" sections="" 53.301-1428="" and="" 53.301-1429="" are="" revised="" to="" read="" as="" follows:="" 53.301-1428="" inventory="" disposal="" schedule.="" [graphic]="" [tiff="" omitted]="" tp02jn97.134="" [[page="" 30217]]="" [graphic]="" [tiff="" omitted]="" tp02jn97.135="" i70billing="" code="" 6820-ep-c="" [[page="" 30218]]="" 53.301-1429="" inventory="" disposal="" schedule-continuation="" sheet.="" [graphic]="" [tiff="" omitted]="" tp02jn97.136="" [[page="" 30219]]="" [fr="" doc.="" 97-14250="" filed="" 5-30-97;="" 8:45="" am]="" billing="" code="" 6820-ep-c="">$1,500>