(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 87 FR 25927, Dec. 6, 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.

an

Requests for Secretarial approval of 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 FR. 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 F.R. 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

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 73572. 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.

(a) If Government or contractor 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 certifcate 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, 8012) [30 F.R. 12235, Sept. 24, 1965]

606.5002 606.5003

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.

§ 606.051 Translations of procurement forms.

To facilitate procurement in foreign countries, authority is granted to repro

duce a translation of any procurement form. A bilingual form may be used or the translation may be printed as a separate form. When the foreign language translation is printed as a separate form, it shall be attached to the corresponding approved form printed in English. In either instance the clause in 3.608-2 (b) (2) (11) (b) of this title shall be included in the schedule.

Subparts A-D-[Reserved] Subpart E-Special Contract and Order Formats and Forms

§ 606.501 Format for educational services agreements.

Instructions relative to use of educational service agreements are contained in § 594.5502 of this chapter. The format in § 16.501 of this title replaced DA Form 357, Basic Agreement for Academic Instruction.

[85 F.R. 8566, June 3, 1970]

§ 606.501-50

Order form for use with educational service agreements.

DD Forms 1155 or Standard Forms 28 shall be used as order forms in accordance with instructions in § 594.5503 of this chapter.

[85 FR. 8566, June 3, 1970]

(a) DA Form 588, Basic Agreement for Off-Duty Academic Instruction, shall be used for off-duty academic instruction agreements in accordance with instructions in 594.5407 of this chapter.

(b) DA Form 598, Order Form to Enter Into Contract for Off-Duty Academic Instruction, shall be used for ordering services under Basic Agreements in accordance with instructions in 594.5407 of this chapter. [35 FR. 8566, June 3, 1970]

§ 606.551 Commercial warehousing and

related services for household goods. (a) DD Form 1162, Basic Agreement for Storage of Household Goods and Related Services, shall be used in accordance with instructions in Chapter 10, DOD Regulation 4500.34-R.

(b) DD Form 1164, Service Order for Household Goods, shall be used to place orders under Basic Agreements in accordance with instructions in Chapter

10, DOD Regulation 4500.34-R (see also §§ 591.452-1 and 612.651 of this chapter). [36 F.R. 8948, May 15, 1971, as amended at 36 FR. 20684, Oct. 28, 1971]

§ 606.552 Letter contract formats. § 606.552-1 Cost-reimbursement type.

The format below is prescribed for use when the definitized contract will be a cost-reimbursement type contract. The appropriate clauses in Subpart H Part 7 of this title (also see § 23.201-2 of this title) shall be attached thereto as "Attachment A.”

1. This letter constitutes a contract on the terms set forth herein and signifies the intention of the Department to execute a formal cost-reimbursement type contract with you for the delivery of the supplies and the performance of the services as set forth in the enclosure marked "Attachment A," upon the terms and conditions therein stated, which is incorporated in and made a part hereof.

2. You are directed in accordance with the clause entitled, "Execution, Commencement of Work and Priority Rating," to proceed immediately to commence performance of the work, and to pursue such work with all diligence to the end that the supplies may be delivered or services performed within the time specified in Attachment A, or if no time is so specified, at the earliest practicable date. You shall, in addition, obtain such approvals in respect of commitments hereunder as may be specified in Attachment A.

3. In accordance with the clause entitled "Definitization," you shall submit a quotation of the estimated cost to the Government, including fee, for the articles and services covered by this letter. Your quotation shall be supported by a cost breakdown reflecting the factors outlined in the suggested format enclosed, together with a Certificate of Current Cost or Pricing Data (ASPR 3-807.4) and such other information as may be specified herein.

4. In the event of a termination of performance of the work or any part thereof under this letter pursuant to the Termination clause in Attachment A or in the event that the formal contract is not executed you shall be paid in accordance with the provisions of such Termination clause. Your failure to execute a formal contract by reason of unexcusable delay may justify a termination. Your attention is specifically invited to the clause entitled "Limitation of Government Liability."