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DFARS 245



Part 245-Government Property

TABLE OF CONTENTS

SUBPART 245.1--GENERAL

245.104 Review and correction of contractor's property control systems.

SUBPART 245.3--PROVIDING GOVERNMENT PROPERTY TO
CONTRACTORS

245.301 Definitions.

245.302 Providing facilities.

245.302-1 Policy.

245.302-2 Facilities contracts.

245.302-7 Optional property-related clauses for facilities contracts.

245.303 Providing material.

245.303-2 Procedures.

245.307 Providing special test equipment.

245.307-2 Acquiring special test equipment.

245.310 Providing agency-peculiar property.

245.310-70 Contract clause.

SUBPART 245.4--USE AND RENTAL OF GOVERNMENT PROPERTY

245.401 Policy.

245.403 Rental--Use and charges clause.

245.405 Contracts with foreign governments or international organizations.

245.407 Non-Government use of plant equipment.

SUBPART 245.5--MANAGEMENT OF GOVERNMENT PROPERTY IN THE POSSESSION OF CONTRACTORS

245.505 Records and reports of Government property.

245.505-3 Records of material.

245.505-5 Records of plant equipment.

245.505-6 Special reports of plant equipment.

245.505-14 Reports of Government property.

SUBPART 245.6--REPORTING, REDISTRIBUTION, AND DISPOSAL OF
CONTRACTOR INVENTORY

245.601 Definitions.

245.603 Disposal methods.

245.603-70 Contractor performance of plant clearance duties.

245.603-71 Disposal of contractor inventory for NATO cooperative projects.

245.604 Restrictions on purchase or retention of contractor inventory.

245.606 Inventory schedules.

245.606-3 Acceptance.

245.606-5 Instructions for preparing and submitting schedules of contractor
inventory.

245.606-70 Instructions for completing DD Form 1342, DoD Property Record.

245.607 Scrap.

245.607-1 General.

245.607-2 Recovering precious metals.

245.607-70 Scrap warranty.

245.608 Screening of contractor inventory.

245.608-1 General.

245.608-2 Standard screening.

245.608-5 Special items screening.

245.608-7 Reimbursement of cost for transfer of contractor inventory.

245.608-70 Contractor inventory redistribution system (CIRS).

245.608-71 Screening industrial plant equipment.

245.608-72 Screening excess automatic data processing equipment (ADPE).

245.609 Donations.

245.610 Sale of surplus contractor inventory.

245.610-1 Responsibility.

245.610-3 Proceeds of sale.

245.610-4 Contractor inventory in foreign countries.

245.612 Removal and storage.

245.612-3 Special storage at the Government's expense.

245.613 Property disposal determinations.

SUBPART 245.70--APPOINTMENT OF PROPERTY ADMINISTRATORS AND
PLANT CLEARANCE OFFICERS

245.7001 Selection, appointment, and termination.

245.7002 Duties and responsibilities of plant clearance officers.

SUBPART 245.71--PLANT CLEARANCE FORMS

245.7101 Forms.

245.7101-1 Standard Form 97, Certificate of Release of a Motor Vehicle (Agency
Record Copy).

245.7101-2 DD Form 1149, Requisition and Invoice Shipping Document.

245.7101-3 DD Form 1348-1, DoD Single Line Item Release/Receipt Document.

245.7101-4 DD Form 1640, Request for Plant Clearance.

SUBPART 245.72--SPECIAL INSTRUCTIONS

245.7201 Performing inventory verifications and determination of allocability.

245.7202 Establishing a plant clearance case.

245.7203 Assigning plant clearance case numbers.

245.7204 Preparing inventory disposal report.

245.7205 Reporting excess and surplus contractor inventory.

245.7206 Transmitting DD Form 1342, DoD Property Record.

SUBPART 245.73--SALE OF SURPLUS CONTRACTOR INVENTORY

245.7301 Policy.

245.7302 Competitive sales.

245.7302-1 Property descriptions.

245.7302-2 Lotting.

245.7302-3 Alternate bids.

245.7302-4 Basis for sale.

245.7302-5 Mailing lists.

245.7303 Formal bid procedures.

245.7304 Informal bid procedures.

245.7305 Sale approval and award.

245.7306 Sales services.

245.7307 Non-competitive sales.

245.7307-1 General.

245.7307-2 Justification.

245.7308 Antitrust notification.

245.7309 Mandatory terms and conditions--formal invitations.

245.7309-1 Inspection.

245.7309-2 Condition and location of property.

245.7309-3 Consideration of bids.

245.7309-4 Payment.

245.7309-5 Title.

245.7309-6 Delivery and removal of property.

245.7309-7 Default.

245.7309-8 Variations in quantity or weight.

245.7309-9 Weighing.

245.7309-10 Risk of loss.

245.7309-11 Liability.

245.7309-12 Oral statements.

245.7309-13 Eligibility of bidders.

245.7309-14 Claims liability.

245.7310 Special term and conditions.

245.7310-1 Demilitarization.

245.7310-2 Performance bond.

245.7310-3 Liability and insurance.

245.7310-4 Dangerous property.

245.7310-5 Controlled substances.

245.7310-6 Radioactive material.

245.7310-7 Scrap warranty.

245.7310-8 Antitrust clearance.

245.7311 Optional conditions.

245.7311-1 Sales and use tax liability.

245.7311-2 Safety, security, and fire regulations.

245.7311-3 Bid deposits.

245.7311-4 Other special conditions.

SUBPART 245.1--GENERAL

245.104 Review and correction of contractor's property control systems.

SUBPART 245.3--PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

245.301 Definitions.

"Agency-peculiar property," as used in DoD, means military property and includes end items and integral components of military weapons systems, along with the related peculiar support equipment which is not readily available as a commercial item.

"Facilities project" means a Government project to provide, modernize or replace facilities for use by a contractor in performing a Government contract or subcontract.

"Industrial plant equipment (IPE)" means plant equipment in Federal stock group 34 with an acquisition cost of $15,000 or more used for cutting, abrading, grinding, shaping, forming, joining, heating, treating, or otherwise altering the physical properties of materials, components or end items entailed in manufacturing, maintenance, supply, processing, assembly, or research and development operations. IPE is further identified in AR 700-43/NAVSUP PUB 5009/AFM 78-9/DLAM 4215.1, Management of Defense-Owned Industrial Plant Equipment.

"Mapping, charting, and geodesy (MC&G) property" is defined in the clause at 252.245-7000, Government Furnished Mapping, Charting and Geodesy Property.

"Other plant equipment" (OPE) means plant equipment regardless of dollar value, used in or in conjunction with the manufacture of components or end items relative to maintenance, supply, processing, assembly or research and development operations. OPE excludes equipment categorized as IPE.

"Provide" means either to furnish, as in Government-furnished property, or to acquire, as in contractor-acquired property.

245.302 Providing facilities.

245.302-1 Policy.

245.302-2 Facilities contracts.

Terminate facilities contracts when Government production and research property is no longer required for the performance of Government contracts or subcontracts, unless termination is not in the best interest of the Government. The contractor is not allowed to extend the time for use of property provided under the facilities contract without Government authorization.

245.302-7 Optional property-related clauses for facilities contracts.

Use the clause at 252.225-7030, Restriction on Acquisition of Carbon, Alloy, and Armor Steel Plate, as prescribed in 225.7017-4.

245.303 Providing material.

245.303-2 Procedures.

When a contractor will be responsible for preparing requisitioning documentation, include in the contract the requirement to prepare the documentation in accordance with DoD 4000.25-1-M, Military Standard Requisitioning and Issue Procedures (MILSTRIP). Copies are available from the address cited at 251.102(e)2.b(2).

245.307 Providing special test equipment.

245.307-2 Acquiring special test equipment.

245.310 Providing agency-peculiar property.

245.310-70 Contract clause.

Use the clause at 252.245-7000, Government-Furnished Mapping, Charting, and Geodesy Property, in solicitations and contracts when mapping, charting, and geodesy property is to be furnished.

SUBPART 245.4--USE AND RENTAL OF GOVERNMENT PROPERTY

245.401 Policy.

"Government use" includes use on contracts for foreign military sales. Use on contracts for foreign military sales shall be on a rent-free basis.

245.403 Rental--Use and charges clause.

245.405 Contracts with foreign governments or international organizations.

245.407 Non-Government use of plant equipment.

SUBPART 245.5--MANAGEMENT OF GOVERNMENT PROPERTY IN THE POSSESSION OF CONTRACTORS

245.505 Records and reports of Government property.

245.505-3 Records of material.

If adequate controls are in place to meet the requirements of the clause at 252.242-7004, Material Management and Accounting System, the contractor's material control system may physically commingle inventories that may include materials for which costs are charged or allocated to fixed-price, cost-reimbursement, and commercial contracts. Government-furnished material (GFM) may not be physically commingled with other material, nor may GFM be used on contractor's commercial work.

245.505-5 Records of plant equipment.

245.505-6 Special reports of plant equipment.

The contractor shall prepare a DD Form 1342 in accordance with instructions contained in AR 700-43/NAVSUP PUB 5009/AFM 78-9/DLAM 4215.1, Management of Defense-Owned Industrial Plant Equipment (IPE)-

245.505-14 Reports of Government property.

SUBPART 245.6--REPORTING, REDISTRIBUTION, AND DISPOSAL OF CONTRACTOR INVENTORY

245.601 Definitions.

245.603 Disposal methods.

245.603-70 Contractor performance of plant clearance duties.

(FAR 45.609);

245.603-71 Disposal of contractor inventory for NATO cooperative projects.

245.604 Restrictions on purchase or retention of contractor inventory.

245.606 Inventory schedules.

245.606-3 Acceptance.

245.606-5 Instructions for preparing and submitting schedules of contractor inventory.

(SF 1432).

245.606-70 Instructions for completing DD Form 1342, DoD Property Record.

245.607 Scrap.

245.607-1 General.

245.607-2 Recovering precious metals.

245.607-70 Scrap warranty.

245.608 Screening of contractor inventory.

245.608-1 General.

245.608-2 Standard screening.

245.608-5 Special items screening.

245.608-7 Reimbursement of cost for transfer of contractor inventory.

The Defense Logistics Agency will pay for the movement of industrial plant equipment under the direction and control of the Defense Supply Center Richmond.

245.608-70 Contractor inventory redistribution system (CIRS).

245.608-71 Screening industrial plant equipment.

245.608-72 Screening excess automatic data processing equipment (ADPE).

Report ADPE that is Government-owned or leased by the contractor (with Government purchase option or other interests, including use rights) to the Defense Information Systems Agency, Defense Automation Resources Management Program Division (DARMP). DARMP does all required screening, including General Services Administration screening, for ADPE. (See the Defense Automation Resources Management Manual.)

245.609 Donations.

Agencies may donate, with GSA approval and without expense to the United States, certain material not needed by DoD to certain organizations such as veterans' organizations, soldiers' monument associations, State museums, and incorporated educational, not for profit museums. For further guidance, see DoD 4160.21-M, Defense Reutilization and Disposal Manual.

245.610 Sale of surplus contractor inventory.

245.610-1 Responsibility.

245.610-3 Proceeds of sale.

245.610-4 Contractor inventory in foreign countries.

245.612 Removal and storage.

245.612-3 Special storage at the Government's expense.

245.613 Property disposal determinations.

The plant clearance officer shall-

SUBPART 245.70--APPOINTMENT OF PROPERTY ADMINISTRATORS AND PLANT CLEARANCE OFFICERS

245.7001 Selection, appointment, and termination.

245.7002 Duties and responsibilities of plant clearance officers.

The plant clearance officer shall-

SUBPART 245.71--PLANT CLEARANCE FORMS

245.7101 Forms.

Use the forms listed below in performance of plant clearance actions.

245.7101-1 Standard Form 97, Certificate of Release of a Motor Vehicle (Agency Record Copy).

Use for transfers, donations, and sales of motor vehicles. The contracting officer shall execute the SF 97 and furnish it to the purchaser.

245.7101-2 DD Form 1149, Requisition and Invoice Shipping Document.

Use for transfer and donation of contractor inventory. Donations of industrial plant equipment may be shipped via DD Form 1149. This form may also be used to consolidate contractor inventory redistribution system-directed shipments going to the same destination.

245.7101-3 DD Form 1348-1, DoD Single Line Item Release/Receipt Document.

Use for shipments of excess industrial plant equipment and contractor inventory redistribution system (CIRS) inventory.

245.7101-4 DD Form 1640, Request for Plant Clearance.

Use to request plant clearance assistance or transfer plant clearance.

SUBPART 245.72--SPECIAL INSTRUCTIONS

245.7201 Performing inventory verifications and determination of allocability.

Use the following guidance for verifying inventory schedules-

245.7202 Establishing a plant clearance case.

245.7203 Assigning plant clearance case numbers.

245.7204 Preparing inventory disposal report.

245.7205 Reporting excess and surplus contractor inventory.

245.7206 Transmitting DD Form 1342, DoD Property Record.

As a minimum, the plant clearance officer will provide the following information in a letter forwarding DD Forms 1342 to Defense Supply Center Richmond (DSCR)-

SUBPART 245.73--SALE OF SURPLUS CONTRACTOR INVENTORY

245.7301 Policy.

245.7302 Competitive sales.

245.7302-1 Property descriptions.

245.7302-2 Lotting.

245.7302-3 Alternate bids.

Offerors may be solicited to bid for groups or for the entire offering by use of the following:

245.7302-4 Basis for sale.

245.7302-5 Mailing lists.

245.7303 Formal bid procedures.

245.7304 Informal bid procedures.

245.7305 Sale approval and award.

The plant clearance officer will-

245.7306 Sales services.

When sale services are needed, the plant clearance officer will document the reasons in the case file and make arrangements directly with the Defense Reutilization and Marketing Service (DRMS) or General Services Administration (GSA). The arrangements will include a requirement to return all proceeds to the plant clearance officer for crediting in compliance with FAR 45.610-3.

245.7307 Non-competitive sales.

245.7307-1 General.

245.7307-2 Justification.

245.7308 Antitrust notification.

245.7309 Mandatory terms and conditions-formal invitations.

Sale by formal invitation shall include, as a minimum, the terms and conditions in this section.

245.7309-1 Inspection.

The Bidder is invited to inspect the property prior to submitting a bid. Property will be available for inspection at the places and times specified in the Invitation. Failure to inspect property does not constitute grounds for the withdrawal of a bid after opening.

245.7309-2 Condition and location of property.

245.7309-3 Consideration of bids.

245.7309-4 Payment.

245.7309-5 Title.

245.7309-6 Delivery and removal of property.

245.7309-7 Default.

If the successful Bidder fails to make full payment, remove property by the specified date, or comply with any other terms and conditions of sale, the Contractor reserves the right to sell or otherwise dispose of any or all such property and to charge losses and incidental expenses to the defaulting Bidder. Bid deposits received (if required in the Invitation) shall be applied against such losses and expenses.

245.7309-8 Variations in quantity or weight.

When property is sold on a "unit price" basis, the Contractor reserves the right to vary by up to 15 percent the quantity or weight listed in the Invitation and the Purchaser agrees to accept delivery of any quantity or weight within these limits. The purchase price shall be adjusted in accordance with the unit price and on the basis of the quantity or weight delivered.

245.7309-9 Weighing.

245.7309-10 Risk of loss.

The Contractor is responsible for reasonable care and protection of the property until the date specified for removal. All risk of loss, damage, or destruction from any cause whatsoever shall be borne by the Purchaser after passage of title.

245.7309-11 Liability.

Contractor and Government liability, when liability has been established, shall not exceed the refund of any portion of the purchase price already received by the Contractor.

245.7309-12 Oral statements.

Any oral statement by the Contractor changing or supplementing the contract or any condition thereof is unauthorized.

245.7309-13 Eligibility of bidders.

The Bidder shall certify that the Bidder is not-

245.7309-14 Claims liability.

The Purchaser or Bidder agrees to save the Contractor and Government harmless from any and all claims, demands, actions, debts, liabilities, judgments, costs, and attorney's fees arising out of, claimed on account of, or in any manner predicated upon loss of or damage to property of, and injuries to or the death of any and all persons whatsoever, in any manner caused or contributed to by the Purchaser or Bidder, their agents, servants or employees, while in, upon, or about the sale site on which the property sold or offered for sale is located, or while going to or departing from such areas; and to save the Contractor and Government harmless from and on account of damages of any kind which the Contractor may suffer as the result of the acts of any of the Purchaser's agents, servants, or employees while in or about the said sites.

245.7310 Special term and conditions.

When necessary, include the special conditions of this section in formal invitations.

245.7310-1 Demilitarization.

When demilitarization of property is required, whether on or off contractor or Government premises, the invitation must include the following clause:

245.7310-2 Performance bond.

Performance bonds are required when work, other than loading, is to be performed by the purchaser and a bond is considered necessary to ensure performance. Generally, performance bonds shall be 100 percent of the estimated cost of the work to be performed. If a 100 percent performance bond would be disadvantageous to the Contractor or to the Government, the amount may be reduced to not less than

50 percent of the estimated cost of the work. Include the following condition when performance bonds are required:

245.7310-3 Liability and insurance.

When the work to be performed by the purchaser warrants, use the following:

LIABILITY AND INSURANCE

The Purchaser shall at the Purchaser's own expense purchase and maintain during the term of the contract insurance as follows:

 

    (a) Standard workers' compensation and employer's liability insurance required under State and Federal statutes. However, the Contractor may waive this requirement upon receipt of satisfactory evidence that the Purchaser is qualified as a self-insurer under applicable provisions of law.

 

    (b) Bodily injury liability insurance in an amount not less than $300,000 for any one occurrence; and

 

    (c) Property damage liability insurance.

245.7310-4 Dangerous property.

The following warning shall be included when it cannot be certified that the property is completely harmless:

DANGEROUS PROPERTY

Purchasers are warned that the property purchased may contain items of an explosive, toxic, or inflammable nature, notwithstanding reasonable care exercised by the Contractor to render the property harmless. The Contractor and the Government assume no liability for damage to the property of the Purchaser, or for personal injuries or disabilities to the Purchaser or the Purchaser's employees, or to any other person, arising from or incident to the purchase of the property, or its use or disposition by the Purchaser. The Purchaser shall save the Contractor and the Government harmless from any and all such claims.

245.7310-5 Controlled substances.

The sale of controlled substances, e.g., narcotics, stimulants, depressants, or hallucinogenic drugs, shall be subject to the following special conditions:

(a) CONTROLLED SUBSTANCES.

 

Bids will be rejected unless the Bidder submits the following certification with its bid:

"The undersigned represents and warrants that it is registered under The Comprehensive Drug Abuse Prevention and Control Act of 1970, and is authorized under the law and by the Attorney General, U.S. Department of Justice (Bureau of Narcotics and Dangerous Drugs) to buy controlled substances as a medical practitioner, dealer or manufacturer of controlled substances."

 

(b) NARCOTIC DRUGS AND CHEMICALS.

 

Bids will be rejected unless the Bidder submits the following certification with its bid:

    "The undersigned represents and warrants that it is registered under Federal narcotics laws and is authorized by law and by the Bureau of Narcotics, United States Treasury Department, as a manufacturer of narcotics."

245.7310-6 Radioactive material.

The following shall be used whenever the property offered for sale is capable of emitting ionized radiation:

RADIOACTIVE MATERIAL

Purchasers are warned that the property may be capable of emitting ionized radiation. The Contractor and the Government assume no liability for damage to the property of the Purchaser, or for personal injuries or disabilities to the Purchaser or the Purchaser's employees, or to any other person arising from or incident to the purchase of the property or its use or disposition by the Purchaser. The Purchaser shall hold the Contractor and the Government harmless from all such claims. The Purchase should warn possessors or users of the property that it may be capable of emitting ionized radiation.

245.7310-7 Scrap warranty.

The following condition shall be used whenever property, other than production scrap, is offered for sale as scrap:

245.7310-8 Antitrust clearance.

When property with an acquisition cost of $3 million or more is to be sold, include the following in the invitation:

ANTITRUST

When the property offered for sale has an acquisition cost of

$3 million or more, or consists of patents, processes, techniques, or inventions, irrespective of cost, the successful Bidder shall be required to furnish additional information and shall allow up to 60 days for acceptance of its bid. Award shall be made only upon advice from the Department of Justice that the proposed sale would not create or maintain a situation inconsistent with the antitrust laws.

245.7311 Optional conditions.

The following special conditions of sale may be added at the option of the contractor:

245.7311-1 Sales and use tax liability.

For purchases of property subject to a state sales or use tax, a special condition of sale may stipulate that the Purchaser shall pay and the Contractor shall collect the amount of the tax, which shall be itemized separately on the billing document.

245.7311-2 Safety, security, and fire regulations.

245.7311-3 Bid deposits.

245.7311-4 Other special conditions.

Other special conditions considered necessary by the Contractor are subject to the prior approval of the plant clearance officer. Approval will normally be granted provided the prescribed conditions of sale are not altered or affected and the interest of the Government is not adversely affected.

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