# DLAD PART 45 – GOVERNMENT PROPERTY

- 45.000 Scope of Part.

- SUBPART 45.1 – GENERAL

- 45.102 Policy.
- 45.103 Responsibility and liability for Government property.
- 45.105 Records of Government property.
- 45.106 Government Property Clauses.
- 45.106(90)
- 45.106(91)
- 45.106(92)(a)
- 45.106(93)
- 45.106(94)
- 45.106(95)
- 45.106(96)
- 45.106(97)
- 45.106(98)
- 45.106(99)
- 45.106(100)
- 45.106(101)
- 45.106(102)
- 45.106(103)
- 45.106(104)
- 45.106(105)
- 45.106(106)
- 45.106(107)
- 45.106(108)
- 45.106(109)
- 45.106(110)
- 45.106(111)
- 45.106(112)

- SUBPART 45.2 – COMPETITIVE ADVANTAGE

- 45.205 Solicitation requirements.

- SUBPART 45.3 – PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

- 45.302 Providing facilities.

- 45.302-1 Policy.
- 45.302-6(90)

- 45.306(90) Providing special tooling.

- 45.306-5(91)
- 45.306-5(92)
- 45.306-5(93)
- 45.307-2 Acquiring special test equipment.

- SUBPART 45.4 – CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY

- 45.407 Non-Government use of plant equipment.

- SUBPART 45.6 – REPORTING, REDISTRIBUTION, AND DISPOSAL OF CONTRACTOR INVENTORY

- 45.608 Screening of contractor inventory.

- 45.608-1 General.

- 45.612 Removal and storage.

- 45.612-3 Special storage at the Government's expense.

PART 45 – GOVERNMENT PROPERTY

TABLE OF CONTENTS

45.000 Scope of part.

SUBPART 45.1 – GENERAL

45.102 Policy.

45.103 Responsibility and liability for Government property.

45.105 Records of Government Property.

45.106 Government Property Clauses.

SUBPART 45.2 – COMPETITIVE ADVANTAGE

45.205 Solicitation requirements.

SUBPART 45.3 – PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

45.302 Providing facilities.

45.302-1 Policy.

45.306(90) Providing special tooling.

45.307-2 Acquiring special test equipment.

SUBPART 45.4 – CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY

45.407 Non-Government use of plant equipment.

SUBPART 45.6 – REPORTING, REDISTRIBUTION, AND DISPOSAL OF CONTRACTOR INVENTORY

45.608 Screening of contractor inventory.

45.608-1 General.

45.612 Removal and storage.

45.612-3 Special storage at the Government's expense.

45.000 Scope of Part.

This part is also applicable to those items for which the rotational/storage stock concept is used to maintain a sufficient quantity of items with short shelf life needed for wartime requirements. Rotational stocks should be considered government property (GP) and the appropriate GP clauses prescribed in this part should be incorporated to ensure that the stocks are properly maintained and accounted for by the contractor. Specific or unique requirements over and above those contained the GP clauses, such as a provision for acceptable replenishment rates, should be spelled out in the statement of work for the contract.

SUBPART 45.1 – GENERAL

45.102 Policy.

(90) It is DLA policy to rely on the private sector to furnish all the production equipment needed to produce the contracted item. Where property is unique to the production of an item and it is not economical for contractors to own such equipment, DLA may be required to acquire and retain this production equipment.

(a) Government property (GP) associated with the production of end items being assigned to DLA for management under the consumable item transfer (CIT) should be identified, located, moved to DLA-controlled storage, and entered into an accountable property record to assure availability for production when needed. For that property in the hands of contractors, steps should also be taken to ensure proper accountability of the property.

(b) Property will be retained in the DLA Industrial Equipment Reserve (DLAIER) to meet current and future production requirements and will be disposed of when no longer justified. Retention of DLAIER equipment will require a biennial certification. Detailed guidance and procedures on management of GP are contained in DLAI 4215.4, Acquisition and Management of Industrial Resources.

45.103 Responsibility and liability for Government property.

(90) Management of property associated with CIT.

(a) Each Supply Center that has GP will establish a property focal point who will:

(1) Verify the location, quantity, type, and condition of property being transferred to DLA. DCMA personnel can be used to assist in this process.

(2) Work with supply management and technical and logistics services to develop the identifying number (NSN, local stock number, part number) that will be used in the official system to account for GP.

(b) Supply management personnel are responsible for storage and accountability of GP.

(91) Management of property in DLAIER.

(a) The property focal point will:

(1) Ensure that a copy of the record for each set/piece of equipment under the Center's cognizance is available for authorizing its use on contracts as needed.

(2) Provide verification of availability and authorization to use equipment to contracting officers.

(3) Review the items in the DLAIER for continued retention or disposal. If continued retention is required, a biennial certification should be prepared for those items at the end of each even FY in accordance with the retention criteria in DLAI 4215.4.

(b) Supply management personnel are responsible for storage and accountability functions for GP.

45.105 Records of Government property.

(90) The property focal point will document additions and deletions to the DLAIER of idle and active equipment to ensure availability of this information and serve as the basis for the biennial certification signed by the chief of the contracting office.

(91) The supply management function will maintain the accountable inventory record of property under a Center's cognizance and report the property into DLA's accountable record.

45.106 Government Property Clauses.

45.106(90)

Use 52.245-9001, Evaluation of Use of Government Furnished Property, in solicitations when the Government offers to supply Government Furnished Property as defined in FAR 45.101. Fill in item number, identification of government property, etc., in paragraph (b) and time when the property would be delivered to the contractor in paragraph (c).

45.106(91)

Use the clause at 52.245-9002, Use of Government Furnished Property, in awards when Government property (tooling, molding, etc., other than Government material) is to be furnished to the contractor, and where FAR 52.245-2 or 52.245-4 are used. Fill in the blanks as appropriate. Paragraph (b), the "Period of Use" should normally be completed by insertion of the phrase "Duration of Contract”.

45.106(92)(a)

Use the clause at 52.245-9003, Transportation Costs of GFP, in all solicitations and awards to describe evaluation procedures when any type of GFP (material, special tooling, test equipment) is to be shipped to the contractor at Government expense, and where FAR 52.247-55 and the Government Furnished Property clause FAR 52.245-2 or 52.245-4 are used, except when Government-furnished precious metals are to be provided (DLAD 90.404 ) or special tooling is to be provided which is managed by a center. Buyer should complete paragraphs (a), (c), and (e). Offeror should complete paragraph (b).

45.106(93)

Use the clause at 52.245-9009, Government-furnished Property (GFP), when GFP will be provided to a Contractor in the performance of a contract for DLA Land and Maritime by the DLA Contracting Services Office, Columbus (DCSO-C). Enter a brief description of the property, quantity involved, and estimated value.

45.106(94)

Use the clause at 52.245-9010, Government-furnished Property (GFP): Hubs, Dies, Molds, Shaping Blocks, Guide Samples, and Inspection Gauges, in Clothing & Textiles solicitations and awards when hubs, dies, molds, inspection gauges, shaping blocks, and/or guide samples for metal insignia are to be furnished to the successful offeror.

45.106(95)

Use the clause at 52.245-9011, Government-furnished Material (GFM) (Bailment System) and Property Administration, in Clothing & Textiles solicitations and contracts when Government material (cloth) will be provided on a bailment (i.e. where ownership of material remains with the Government) basis. Do not use when Government material will be provided on a loan basis or for servicing (e.g. dyeing or finishing.) Use is also authorized in Medical acquisitions where Government material (cloth) will be provided in accordance with the C&T Bailment System procedures. Insert appropriate fill-in data for paragraphs (a)(1), (e), (f) and (g). Purchase orders must be assigned to DCMA for property administration.

45.106(96)

Use the provision at 52.245-9012, Government-furnished Property Cloth Only, in Clothing & Textiles solicitations where cloth is furnished under non-bailment procedures.

45.106(97)

Use the clause at 52.245-9013, Provisions Relating to Materials to Be Furnished by the Government (Non-Bailment)- Footwear, in Clothing & Textiles solicitations and contracts for footwear items where GFP (Non-Bailment) is involved. Insert entries in paragraphs (a), (b), and (f)(2)(ii thru iv).

45.106(98)

Use the clause at 52.245-9014, Government-furnished Property (GFP) Provisions – Dyeing & Finishing Contracts, in Clothing & Textiles solicitations and contracts for dyeing and/or finishing of textiles. Also, use FAR 52.247-55 with this clause. In paragraph (a), identify the material to be furnished by the Government. In paragraph (c), insert the number of days after date of award within which the Contractor can expect delivery of GFP.

45.106(99)

Use the clause at 52.245-9015, Dyeing and Finishing of Textiles, in Clothing & Textiles solicitations for services involving the dyeing and finishing of griege (i.e. fabric not yet dyed or finished) goods. Insert the appropriate percentages in paragraph(s) (a) and/or (b).

45.106(100)

Use the clause at 52.245-9016, Availability of Clothing Patterns, in Clothing & Textiles solicitations and contracts when the Government will furnish clothing patterns.

45.106(101)

Use the clause at 52.245-9017, Ownership of Overruns Containing Government-furnished Property, in Clothing & Textiles solicitations and contracts that provide for GFP, except dyeing and finishing contracts.

45.106(102)

Use the clause at 52.245-9018, Government-furnished Material – NIB and NISH, in Clothing and Textiles delivery orders involving GFM for NIB and NISH. In paragraph (a) insert nomenclature, unit price, allowance per unit, and value of allowance per unit of the GFM provided.

45.106(103)

Use the clause at 52.245-9019, Government-Owned Property (Bulk Storage Contract), in Medical bulk storage solicitations and contracts for vaccine. The Government-owned property under these acquisitions is manufactured by the Contractor, inspected and accepted by the Government, stored in bulk form at the same Contractor's plant, and is subsequently used to fill orders placed by the Government for finished product.

45.106(104)

Use the clause at 52.245-9020, Cartoons and Guide Samples for Embroidered Insignia, in Clothing and Textiles solicitations for embroidered insignia.

45.106(105)

Use the clause at 52.245-9021, Government Samples, in Clothing & Textiles solicitations when there are no end item samples available for loan to bidders, but a sample is available at the Supply Center for inspection.

45.106(106)

Use the clause at 52.245-9022, Sized Items, in Clothing & Textiles solicitations and contracts for sized items.

45.106(107)

Use the clause at 52.245-9023, Firm and Flexible Sizes, in Clothing & Textiles solicitations and contracts for cotton or woolen sized items involving GFM.

45.106(108)

Use the clause at 52.245-9024, Special Measurements, in Clothing & Textiles solicitations and contracts for all personal use sized items, including sewn leather items, but exclusive of non-sewn leather items, blocked (i.e. shaped over a mold) hats, and knitted items.

45.106(109)

Use the clause at 52.245-9025, Contractor Control of Government-furnished Property (GFP), in Subsistence acquisitions for MRE, semi-perishable items.

45.106(110)

Use the clause at 52.245-9026, Special Instructions for Compressed Gas Requirements (including FSCs 6830 and 8120), in solicitations and awards for refurbishment/refill of compressed gas cylinders (includes FSCs 6830 and 8120). If the Contractor has indicated they will pick up the cylinders from the Depot, the buyer will annotate “Contractor Pick-up” on the FL226.

45.106(111)

Use the clause at 52.245-9027, Government-furnished Property (GFP) Mechanical Gauges (Loaned) (Includes FSCs 5995 and 6150), when the PID requires use of Government-furnished mechanical gauges (including FSCs 5995 and 6150), managed by U.S. Army TMDE Support Center, Tobyhanna, PA. Insert data regarding gauges in paragraph (a) of 52.245-9003 under “Identification of Property”.

45.106(112)

Use the clause at DLAD 52.245-9028, Allowable Losses for Meal, Ready-to-Eat (MRE) and Tray Pack Government-furnished Property (GFP), in Subsistence solicitations and contracts for MRE and tray pack semi perishable items.

SUBPART 45.2 – COMPETITIVE ADVANTAGE

45.205 Solicitation requirements.

(b) The preferable evaluation procedure is to use rental equivalents and authorize rent-free use of GFP because the resulting award price will be lower. This conserves DLA's funds because rental monies flow back into the U.S. Treasury at the expense of the DLA budget. Charging the contractor rent shall be used only when absolutely necessary.

SUBPART 45.3 – PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

45.302 Providing facilities.

45.302-1 Policy.

(a) Maximum reliance shall be placed on the use of contractor-owned facilities to support current production requirements for DLA-managed items. If the Government authorizes the contractor to acquire facilities for the account of the Government, no fee or profit will be allowed, regardless of the type of contract used to reimburse the contractor for the cost of the facilities. This policy does not apply to the acquisition of general purpose components of special tooling or special test equipment.

(4) Requests for new facilities will be forwarded to DLA HQ, Attention: J74, for approval by the Director, DLA. Sufficient documentation shall be provided with the request to show that the need for supplies or services cannot be met by any other practical means or that the furnishing of facilities will be in the public interest. A copy of the contractor's written statement, expressing its unwillingness or financial inability to acquire the necessary facilities with its resources, shall be included as a part of requests for new facilities. In addition to a contractor's statement of inability or unwillingness to own facilities essential to contract performance, the following certification must be made by a contracting official at least one level above the contracting officer:

(90) That private financing of individual facilities was sought but was not available or that private financing was determined not to be advantageous to the Government.

91) That the defense contract cannot be accomplished without Government- owned industrial facilities being provided. This requirement for certification applies to new facilities or existing facilities and to extending the authorized period of use. The original of the certification shall be included in the contract file and copies retained in a central office for oversight review. The certification will be included in the request for approval to acquire facilities or to provide existing facilities.

(c) When determination is made that solicitations should include an offer to furnish existing Government facilities because adequate price competition cannot be otherwise obtained, the case will be fully documented to indicate the basis for such determination.

45.302-6(90)

(a) Insert the clause at 52.245-9008, Use of Government Facilities on a No Charge Basis, in awards when Government-owned facilities are to be used. Check subparagraph (a) to provide that the facilities may be used on a rent-free basis and insert applicable facilities' contract number. If the offeror does not furnish with its offer permission from the facilities contracting officer to utilize the facilities on a rent-free basis, the offeror must secure approval for such use prior to award.

(b) Under provision 52.245-9001, Evaluation of Use of Government Furnished Property, offerors desiring to use Government facilities in their possession must secure a letter (and attach to offer) from the Facilities Contracting Officer agreeing to use of property in performance of proposed contract and specify rent to be charged or an evaluation factor to be used.

(1) If the offeror fails to provide information required by provision 52.245-9001, Evaluation of Use of Government Furnished Property, in its offer, the offer must be rejected as nonresponsive if in response to an IFB, or may be rejected as not acceptable or be noted to have a deficiency, if in response to an RFP.

(c) For FMS Requirements, FAR 45.405 provides that Government facilities can be used by the contractor provided that rent is paid for use thereof. If this is applicable, upon receipt of the information required by 52.245-9001, secure contractor's agreement to pay rental and, if that offeror receives award, include this clause 52.245-9008 and check paragraph (b) to identify facilities contract and insert the monthly rental to be paid.

45.306(90) Providing special tooling.

Criteria for acquisition. When the contracting officer receives notice of the contractor's intent to acquire or fabricate special tooling, the contracting officer will, before agreeing to the classification and approval for payment of the property as special tooling, obtain a written determination from a Defense Contract Management Agency (DCMA) representative that the property is needed and properly classified. The written determination by the DCMA technical evaluator will be included in the contract file.

45.306-5(91)

Use the clause at 52.245-9005, Government-Owned Tooling, when Government owned special tooling is mentioned in the PID or in the Manufacturer's Part Number Data field of the PR trailer. Buyer should coordinate with the appropriate Supply Center Special Tooling Coordinator to obtain availability information and data for paragraph (a). Use 52.245-17, 52.245-19, 252.245-7001 (Sec I), 52.245-9006, and 52.245-2 or 52.245-4, as appropriate, with this clause. Purchase Orders containing this clause will be bilateral. Buyer shall indicate on distribution schedule that one copy of award be furnished to Special Tooling Coordinator.

45.306-5(92)

Use the clause at 52.245-9006, Use of Government-Owned Tooling, in Contract Section I, Representations and Certifications, when Government owned special tooling is mentioned in the PID or in the Manufacturer's Part Number Data field of the PR trailer. If gov’t tooling is used, the rental equivalency evaluation factor will be calculated in accordance with the Use and Charges clause set forth in FAR 52.245-9. Use DLAD 52.245-9005 with this clause.

45.306-5(93)

Insert the clause at 52.245-9007, Use of Government-Owned Special Tooling or Test Equipment, in Contract Section I, Representations and Certifications, when FSCs 1560, 1670, 1680, FSGs 28 or 29 are used, when there is uncertainty regarding the existence of Government-owned special tooling or test equipment which could be used in producing the items. If Government owned special tooling or special test equipment will be furnished, ensure FAR Clause 52.245-2 or 52.245-4, as appropriate, is included in Section I of the award.

45.307-2 Acquiring special test equipment.

(b) Notice and approval. When the contracting officer receives notice of the contractor's intent to acquire or fabricate special test equipment, the contracting officer will, before permitting contractor acquisition or fabrication of the equipment as special test equipment, obtain a written determination from a DCMA representative that the property is needed and properly classified. The written determination by the DCMA technical evaluator will be included in the contract file.

SUBPART 45.4 – CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY

45.407 Non-Government use of plant equipment.

(a)(i) Authority to approve non-Government use of metalworking machinery exceeding 25 percent is delegated to the Heads of the contracting activities (HCAs) without power of redelegation. All other contracting offices for which the Director, DLA Acquisition (J7) serves as HCA, shall forward requests for approval to DLA HQ (J74).

SUBPART 45.6 – REPORTING, REDISTRIBUTION, AND DISPOSAL OF CONTRACTOR INVENTORY

45.608 Screening of contractor inventory.

45.608-1 General.

(a) Approval to transfer GP to a DLA contract must be based upon known requirements under the gaining contract or other appropriate justification. Approval for transfer, and the justification upon which it is based, will be placed in the contract file of the gaining contract. The justification will specify the consideration the Government will receive for transfer of the property. If there is no known use for the property under an existing contract, but there is adequate justification and approval for retention of the property, the property shall be transferred to a facilities contract or directly funded storage agreement. Approvals for transfer and the justification upon which the approval is based shall be placed in the file of the gaining contract/agreement. The approval must be at a level above the contracting officer. Property which does not meet this criteria for transfer to another contract will continue to be screened through the plant clearance process. For each item transferred, the contracting officer will include the following descriptive data in the contract to which the items are transferred:

Category of Property (facilities, special tooling, special test equipment, material, and agency-peculiar property).

National Stock Number (NSN) and Part Number (P/N), or P/N if NSN is not assigned.

Noun.

Acquisition Cost.

Condition Code.

Age, if known.

45.612 Removal and storage.

45.612-3 Special storage at the Government's expense.

(b) Storage of GP for which there is not a known contract requirement will be separately priced and directly funded by the DLA contracting office benefiting from the storage. Storage will not be charged to indirect costs to be paid by the Government. Retention plans will be prepared for storage of inactive property. Retention plans will provide a detailed description of the property requiring storage, storage cost, location, planned period of storage, and source of funds for storage. Retention plans will be submitted to DLA HQ, Attention: J74.

(90) The use of no cost or no direct cost storage agreements is prohibited. Individual activities justifying retention of the property are responsible for funding storage agreements. Consideration of storage costs should be included in retention/disposition decisions.