Other Contract Government Property Related Clauses IND 105 Lesson 9
Other Contract Government Property and Related Clauses TLO 9 - Given a Government contract with other property related FAR and DFARS clauses, identify their applicability to the contractor’s Property Management System (PMS). ELOs: 1. Recognize other FAR clauses that impact Government Property. 2. Identify the FAR and DFARS clauses that must be in the contract when FAR 52.245-1 is present. 3. Associate the contractor business systems, that are relevant to the contractor's PMS, with their clauses. 2
Other GP Clauses That Must Be Included ELO 1 FAR The contracting officer shall insert the clause at 52.245-9, Use and Charges, in solicitations and contracts when the clause at 52.245-1 is included. FAR DFARS 45.107(c ) (3) Use the clause at 252.245–7001, Tagging, Labeling, and Marking of Government-Furnished & Property, in solicitations and contracts that contain the clause at FAR 52.245-1, Government Property. DFARS 245.107 (4) Use the clause at 252.245–7002, Reporting Loss of Government Property, in solicitations and contracts that contain the clause at FAR 52.245–1, Government Property. (5) Use the clause at 252.245-7003, Contractor Property Management System Administration, in solicitations and contracts containing the clause at FAR 52.245-1, Government Property. (6) Use the clause at 252.245–7004, Reporting, Reutilization, and Disposal, in solicitations and contracts that contain the clause at FAR 52.245-1, Government Property. 3
GP Installation Operation Services ELO 2 FAR 52.245-2 is must have the 52-245-1 when included in the contract. (b) The contracting officer shall also insert the clause at 52.245-2, FAR 45.107(b ) Government Property (Installation Operation Services), in fixed-price service contracts to be performed on a Government installation when Government- furnished property will be provided for initial provisioning only and the Government is not responsible for repair or replacement. FAR FAR 52.245-2 Government Property Installation Operations Services 52.245-2 (d) Except as provided in this clause, Government property furnished (d) under this contract shall be governed by the Government Property clause of this contract. 4
GP Installation Operation Services ELO 2 Conditions for use – from the Prescription Only in FIXED-PRICE service contracts FAR Work is to be performed on a Government installation 45.107 (b) When Government furnished property will be provided for initial provisioning only with no warranties regarding suitability for use The Government is not responsible for repair or replacement. 5
GP Installation Operation Services ELO 2 The Government Property listed in paragraph (e) of this clause is furnished to the Contractor in an “as-is, where-is” condition. 52.245-2 (a) Since the property is furnished in an “as-is” “where-is” condition the Government has no obligation to restore, rehabilitate, or replace it. The Contractor must bear those costs. X 6
GP Installation Operation Services ELO 2 The Contractor has the opportunity to inspect the Government Property specified in the solicitation. 52.245-2 (a) 7
GP Installation Operation Services ELO 2 The Government bears no responsibility for repair or replacement of any lost Government property. 52.245-2 (b) If any/all Government Property is lost or when it is no longer usable, the Contractor shall be responsible for replacement of the property at Contractor expense. The Contractor has title to all replacement property and shall be responsible for contract performance. 8
GP Installation Operation Services ELO 2 Unless the CO determines otherwise, the Government abandons all rights & title to unserviceable and scrap property 52.245-2 (c) resulting from contract performance. Upon notification to the CO, the Contractor shall remove such property from the Government premises and dispose of it at Contractor expense. Unserviceable 9
GP Installation Operation Services ELO 2 Except as provided in this clause, Government Property furnished under this contract shall be governed by the GP 52.245-2 Clause in this contract. (d) FAR 52.245-1 Government Property 10
GP Installation Operation Services ELO 2 Government Property provided under this clause: (it must be listed) 52.245-2 (e) 1 . John Deere 216 2. Kabota b6100 3. Husqvarna 455 4. Stihl BR 500 5. Weed Eater PE550 Note: A list of the Government property provided under this clause must be provided. This list is used to distinguish the property that is furnished without a warranty (“as-is” “where-is”) from that which has a warranty . 11
GP Installation Operation Services ELO 2 Why must the 52.245-1 be used in conjunction with the 52.245-2? 12
GP Installation Operation Services ELO 2 The purpose of this clause is to supplement the 52.245-1 with language that allows the Government • to benefit from the full life of currently owned assets and; • eventually rid the Government of the ownership burden of those items that would normally not be provided by the contractor. 13
Examples and Guidance GAO Base Operations – DoD’s use of Single Contracts for Multiple Support Services https://www.gao.gov/assets/230/225263.pdf#page=27 DoDI 4000.19 Support Agreements http://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/400019p.pdf#page= 23 Base Operation and Support Contracts http://www.dtic.mil/dtic/tr/fulltext/u2/a471883.pdf#page=5 14
Use and Charges Clause ELO 2 (b) Use of Government property. The Contractor may use the Government property without charge in the performance of— (1) Contracts with the Government that specifically authorize such use FAR 52.245-9 without charge; (2) Subcontracts of any tier under Government prime contracts if the Contracting Officer having cognizance of the prime contract— (i) Approves a subcontract specifically authorizing such use; or (ii) Otherwise authorizes such use in writing; and (3) Other work, if the Contracting Officer specifically authorizes in writing use without charge for such work. 15
Use and Charges Clause ELO 2 Use and Charges Clause, cont. (c) Rental. If granted written permission by the Contracting Officer, or if it is specifically provided for in the Schedule, the Contractor may use the FAR 52.245-9 Government property (except material) for a rental fee for work other than that provided in paragraph (b) of this clause. Authorizing such use of the Government property does not waive any rights of the Government to terminate the Contractor’s right to use the Government property. The rental fee shall be determined in accordance with the following paragraphs. 16
Use and Charges Clause ELO 2 Use and Charges Clause, cont. (d) General. FAR (1) Rental requests shall be submitted to the Administrative Contracting 52.245-9 Officer (ACO), identify the property for which rental is requested, propose a rental period, and compute an estimated rental charge by using the Contractor’s best estimate of rental time in the formulae described in paragraph (e) of this clause. (2) The Contractor shall not use Government property for nongovernmental 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 non-interference basis. 17
Use and Charges Clause ELO 2 Use and Charges Clause, cont. (e) Rental charge. — (1) Real property and associated fixtures. FAR 52.245-9 (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 one year following the date the appraisal was performed. The Contractor shall submit the appraisal to the ACO at least 30 days prior to the date the property is needed for nongovernmental use. Except as provided in paragraph (e)(1)(iii) of this clause, the ACO shall use the appraisal rental rate to determine a reasonable rental charge. 18
Use and Charges Clause ELO 2 Use and Charges Clause, cont. (e) Rental charge. — FAR (ii) Rental charges shall be determined by multiplying the rental time by the 52.245-9 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 ACO believes the appraisal rental rate is unreasonable, the ACO shall promptly notify the Contractor. The parties may agree on an alternative means for computing a reasonable rental charge. 19
Use and Charges Clause ELO 2 Use and Charges Clause, cont. (e) Rental charge. — FAR (iv) The Contractor shall obtain, at its expense, additional property 52.245-9 appraisals in the same manner as provided in paragraph (e)(1)(i) if the effective period has expired and the Contractor desires the continued use of property for nongovernmental use. The Contractor may obtain additional appraisals within the effective period of the current appraisal if the market prices decrease substantially. 20
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