603.801 603.803 603.850 Rental rates and policies applicable to the use of Government production and research property. Non-Government use of industrial plant equipment (IPE). Rent-free use of Government production and research property on work for foreign governments. Subpart E-[Reserved] Subpart F-[Reserved] Subpart G-Contract Clauses Government property clause for cost-reimbursement contracts. Special tooling clause for fixedprice contracts. Liability for Government property furnished for repair or other services. Subpart H-Administrative Practices Appointment of property administrators. Records of Government property. Audits of Government property records. 603.850-1 Responsibility for audits. 603.850-2 Reports of audit. 603.850-3 Records in unsatisfactory condition. AUTHORITY: The provisions of this Part 603 issued under secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012. SOURCE: The provisions of this Part 603 appear at 34 F.R. 9528, June 18, 1969, unless otherwise noted. Subpart A-General § 603.150 Sale, loan, or gift of certain property (10 U.S.C. 4506). (a) Heads of procuring activities are authorized to sell, lend, or give such samples, drawings, and manufacturing or other information as are considered in the interest of the national defense to (1) Any contractor for Army supplies under approved production plans; and (2) Any person likely to manufacture or supply Army supplies under approved production plans. (b) Such samples, drawings, and manufacturing or other information shall be sold, loaned, or given by appropriate written agreement. (c) As a general rule, classified material shall not be sold, loaned, or given pursuant to the authority in this section. (d) In determining whether to sell, loan, or give property under the authority in this section, consideration shall be given to (1) The current or probable future need of the Government for the property; (2) The residual value of the property; (3) Expenses incident to handling and storage of the property; (4) The probable cost of reproduction of the property in the event of future procurement. § 603.151 Loan of Government equipment acquired for research and development. Heads of procuring activities may authorize the loan of Government equipment acquired for research and development to a private industrial firm or educational institution for use in privately financed research and development programs; Provided, That (a) The programs are of interest to the Government; (b) The results of the research will be furnished to the Government without additional cost; and (c) The loan shall be reflected in a written agreement which sets forth the terms of the loan and the benefits to be derived by the Government therefrom. Subpart B-[Reserved] Subpart C-Providing Government Production and Research Property to Contractors § 603.301 Providing facilities. (a) Requests for a Secretarial determination pursuant to § 13.301(a)(3) of this title shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b) (6) of this chapter, (b) New commercially available automatic data processing equipment (ADPE) does not generally qualify as a facility to be furnished by the Government. (c) The Senior ADPE policy official of the Department of the Army referred to in § 13.301 (h) (2) of this title is the Assistant Secretary of the Army (Financial Management). (d) The Assistant Secretary of the Army (Financial Management) has delegated to heads of procuring activities with power of redelegation to chiefs of purchasing offices certain authority to approve the acquisition of ADPE (see § 591.5102 of this chapter). (e) Requests for approval for acqusition of ADPE which require approval at secretarial level shall be forwarded to the Assistant Secretary of Defense (Comptroller) through the Office, Assistant Vice Chief of Staff, Department of the Army, address: HQDA (DACS-CM), and shall include the justification specified in § 15.205-48 (d) of this title. [35 FR 18050, Nov. 25, 1970, as amended at 37 FR 25927, Dec. 8, 1972] § 603.302 Securing approval for facilities projects. (a) Requests for approval of facilities projects involving expenditures of $1 million or more shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b) (6) of this chapter. (b) PEMA and R&D financed facilities projects involving expenditures of less than $1 million shall be approved in accordance with AR 37-120 and AR 700-90. (c) Reporting of facilities projects that involve real property transactions shall be accomplished in accordance with AR 405-10. [34 F.R. 9528, June 18, 1969, as amended at 35 F.R. 8566, June 3, 1970; 35 F.R. 18051, Nov. 25, 1970] § 603.307 Providing Government production and research property when disposal is limited. Requests for Secretarial approval of an alternate provision pursuant to § 13.307(a) (3) of this title shall be forwarded through the cognizant head of procuring activity to the addressee in 591.150 (b) (6) of this chapter. [35 F.R. 8566, June 3, 1970] Subpart D-Use and Rental of Government Production and Research Property § 603.404 Rental rates and policies applicable to the use of Government production and research property. Requests for authority to charge rent on other than time available for use basis shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b) (6) of this chapter and shall contain justification therefor. [35 FR. 8566, June 3, 1970] § 603.405 Non-Government use of industrial plant equipment (IPE). .:! Requests for approval for non-Government use of industrial plant equipment 58-114-76- -11 exceeding 25 percent shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150 (b) (6) of this chapter. [35 F.R. 8566, June 3, 1970] § 603.406 Rent-free use of Government production and research property on work for foreign governments. A head of procuring activity cognizant of Government production and research property located in the United States, its possessions, or Puerto Rico; his deputy; or his principal assistant responsible for procurement, are authorized to approve requests for use of such property without charge on contracts of foreign governments or subcontracts thereunder, subject to the conditions enumerated in § 13.406 of this title. Subpart E-[Reserved] Subpart F-[Reserved] Subpart G-Contract Clauses § 603.703 Government property clause for cost-reimbursement contracts. The clause in § 13.703 of this title shall be used in construction contracts under which the Department of the Army is to furnish the contractor material, special tooling, or such facilities as are authorized under § 13.303 of this title. § 603.704 Special tooling clause for fixed-price contracts. The clause in § 13.704 of this title shall be used in negotiated construction contracts in accordance with § 13.305-2(d) (3) of this title. § 603.750 Liability for Government property furnished for repair or other services. (a) The following clause shall be used in contracts for repair or servicing of Government property when such property is furnished to the contractor for that purpose, except when (1) The Ground and Flight Risk clause in § 10.404 of this title is required; or (2) ASPR prescribes a different Liability or Loss or Damage clause to be used in specific contracts. LIABILITY FOR GOVERNMENT PROPERTY FURNISHED FOR REPAIR OR OTHER SERVICES (MAY 1963) (a) The provisions of this clause shall govern with respect to any Government property turned over to the Contractor to be repaired or to have services performed on it (referred to in this clause as 'Government property furnished for servicing"), and such property shall not be considered "Government furnished property" within the meaning of any clause of the contract entitled "Government Property" or "Government Furnished Property." The Contractor shall maintain adequate records and procedures to insure that Government property furnished for servicing may be readily accounted for and identified at all times while in his custody or possession or the custody or possession of any subcontractor. (b) The Contractor shall be liable for any loss or destruction of or damage to the Government property furnished for servicing caused by the Contractor's failure to exercise such care and dilligence as a reasonably prudent owner of similar property would exercise under similar circumstances. The Contractor shall not be liable for loss or destruction of, or damage to, Government property furnished for servicing resulting from any other cause except to the extent that such loss, destruction, or damage is covered by insurance (including self-insurance funds or reserves). (c) In addition to any insurance (including self-insurance funds or reserves), affording protection in whole or in part against loss or destruction of, or damage to, such Government property carried by the Contractor on the date of this contract, the amount and coverage of which the Contractor hereby agrees to maintain, the Contractor agrees to obtain such additional insurance covering loss or destruction of or damage to Government property furnished to the Contractor for servicing as may, from time to time, be required by the Contracting Officer. The requirement for such additional insurance shall be effected under procedures established by the Changes clause of this contract. (d) The Contractor shall hold the Government harmless and shall indemnify the Government against claims for injury to persons or damage to property of the Contractor or others arising from the Contractor's possession or use of the Government property furnished for servicing or arising from the presence of said property on the premises or property of the Contractor. (b) If a substantial quantity of parts or materials are to be furnished the contractor or a significant amount of scrap may result from the repair or servicing, the appropriate Government property clause in Subpart G, Part 13 of this title shall be included in the contract. The contract schedule shall contain a statement that such parts, materials, or scrap shall be governed by the Government property clause contained in the contract. (a) The Head of Procuring Activity may name the head of one or more Department of the Army purchasing offices as his designee to approve exceptions to the policy of using a contractor's records of Government property as the official records. (b) Policies and procedures governing the transfer of military property to contractors and accounting for such property in instances where the exception in paragraph (a) of this section is applied are contained in AR 735–71 and AR 735– 72. AR 735–71 provides that, where Government property is lost or damaged and the property administrator is unable to exhibit conclusive proof of receipt of the items by a contractor, the property shall be accounted for on a Report of Survey (DD Form 200, Standard Form 361, or DD Form 1599) in accordance with AR 735-11. [37 FR 7088, Apr. 8, 1972] § 603.850 Audits of Government property records. § 603.850-1 Responsibility for audits. Government and contractor maintained records of Government property in possession of contractors are subject to audit in accordance with AR 36–5. § 603.850-2 Reports of audit. Audit findings and recommendations pertaining to the administration of Government property in possession of contractors shall be included in the internal audit report covering the audit of the installation/activity administering the contracts involved. Heads of procuring activities shall establish such controls and procedures as are necessary to insure that deficiencies recorded in internal audit reports are corrected and that due consideration is given all recommendations contained therein. § 603.850-3 Records in unsatisfactory condition. contractor (a) If Government or maintained records of Government property in possession of contractors are in such condition that the status of Government property cannot be ascertained without undue expenditure of time, a report thereof shall be submitted by the cognizant audit office through the addressee in § 591.150 (b) (6) of this chapter to the head of procuring activity concerned. (b) Upon receipt of this report, the head of procuring activity shall direct the installation/activity commander to take the necessary corrective action and shall maintain a close followup to insure that such action is promptly taken. The head of procuring activity shall insure that the cognizant audit office is notified when corrective action has been completed. (c) If the circumstances are such as to justify a waiver of accounting requirements, the case shall be prepared and submitted in accordance with AR 735-79. Subpart C-Contract Provisions for Government Procurement Quality Assurance and Acceptance § 604.306 Acceptance of supplies or services. (a) Certificates of conformance may be for full or partial performance and may be accepted from prime contractors or from subcontractors provided the subcontractors' certificates are countersigned by a responsible official of the prime contractor. (b) Certificates of conformance shall include the information below as a minimum (1) The contract or purchase order number; (2) A complete nomenclature of supplies together with lot numbers or other identification, and the quantity in each lot or shipment; (3) For each lot or shipment, analytical results for each test or inspection prescribed by the contract together with required specification limits; (4) The name of the company and date of the test or inspection; and (5) The following certification with the signature and title of the certifying official The undersigned, individually and as the authorized representative of the Contractor, warrants and represents that: All of the information supplied above is true and accurate; the material covered by this certifi cate conforms to all the contract requirements (including but not limited to the drawings and specifications); the analysis appearing herein is a true and accurate analysis; and this certificate is made for the purpose of inducing payment and with knowledge that the information and certification may be used as a basis for such payment. (c) The following clause shall be used in contracts where acceptance precedes inspection CERTIFICATION ACCEPTANCE (MARCH 1969) Notwithstanding any other provision of the contract, if the supplies for which the Contractor has furnished a certificate of conformance required by the contract are found not to conform to the contract requirements, the Government may, upon notice furnished within a reasonable time after discovery of such nonconformity, reject the supplies and require replacement thereof. Use by the Government of the Contractor's Procedures for processing requests from foreign governments or international organizations for inspection of direct procurements placed by them with U.S. producers are contained in AR 715-23. PART 605-CONTRACT COST PRINCIPLES AND PROCEDURES § 605.050 Uniform application. Directives, regulations, instructions, or procedures which interpret, expand, or limit the substantive provisions of Part 15 of this title shall not be published by any agency, command, or office of the Department of the Army without prior approval of the Assistant Secretary of the Army (Installations and Logistics). Procedural guidance considered necessary for the orderly conduct of procurement shall be submitted by the Head of Procuring Activity for review and approval by the addressee in § 591.150 (b) (6) prior to issuance. (Becs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012) [30 F.R. 12235, Sept. 24, 1965] Sec. 606.550 606.551 606.552 606.552-1 606.552-2 606.553 Off-duty academic instruction agreements. Commercial warehousing and Letter contract formats. Lease agreement-Government Subparts F-WW-[Reserved] Subpart XX-Supply of Procurement Forms 606.5001 Forms stocked by Adjutant General publications centers. 606.5002 Forms not stocked by Adjutant General publications centers. 606.5003 Reproducible masters. AUTHORITY: The provisions of this Part 606 issued under secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012. SOURCE: The provisions of this Part 606 appear at 84 F.R. 9531, June 18, 1969, unless otherwise noted. § 606.050 Use of procurement forms. (a) Procurement forms prescribed by ASPR and APP for use in various aspects of procurement shall be used by all purchasing offices without deviation in format, size, or content unless authority to deviate therefrom has been obtained in accordance with 1.109 of this title and 591.109 of this chapter. Recommendations for changes in procurement forms may be submitted in accordance with 591.105 of this chapter. (b) Local and command forms as defined in AR 310-1, originated for use in various aspects of procurement for which no form is prescribed by ASPR and APP shall conform with the provisions of section II, Forms Management, AR 310-1. Six copies of all local and command forms shall be forwarded upon date of issuance to the addressee in § 591.150(b) (6) of this chapter for consideration for adoption as a DD or DA Form. The forms shall be accompanied by a transmittal letter giving (1) An explanation as to the purpose and need of each form; (2) Instructions for preparation of each form; and (3) Average monthly usage of each form. |