# DLAD PART 45 – GOVERNMENT PROPERTY

- 45.000 Scope of part.

- SUBPART 45.1 – GENERAL

- 45.102-90 Policy.

- 45.103 Responsibility and liability for Government property.
- 45.106 Government property clauses.
- 45.106(90) Evaluation of use of government furnished property in solicitations.
- 45.106(91) Government property furnished to the contractor.
- 45.106(92)(a) GFP shipped to the contractor at Government expense.
- 45.106(93) GFP provided to a contractor in the performance of a contract for DLA Land and Maritime.
- 45.106(94) Government-furnished property in clothing and textiles solicitations and awards.
- 45.106(95) Government-furnished material in clothing and textiles solicitations and contracts.
- 45.106(96) Government-furnished property cloth in C&T solicitations.
- 45.106(97) Provisions relating to materials to be furnished by the Government.
- 45.106(98) Government-furnished property (GFP) provisions – dyeing & finishing contracts, in C&T solicitations and contracts.
- 45.106(99) Dyeing and finishing of textiles.
- 45.106(100) Availability of clothing patterns.
- 45.106(101) Solicitations and contracts that provide for GFP.
- 45.106(102) Government-furnished material – NIB and NISH.
- 45.106(103) Government-owned property (bulk storage contract).
- 45.106(104) Cartoons and guide samples for embroidered insignia.
- 45.106(105) Government Samples - clothing and textiles solicitations.
- 45.106(106) Sized Items - clothing and textiles solicitations and contracts.
- 45.106(107) Firm and flexible sizes - clothing and textiles solicitations and contracts.
- 45.106(108) Special measurements - clothing and textiles solicitations and contracts.
- 45.106(109) Contractor control of Government-furnished property – subsistence acquisitions.
- 45.106(110) Special instructions for compressed gas requirements.
- 45.106(111) Government-furnished property (GFP) mechanical gauges (loaned).
- 45.106(112) Allowable losses – subsistence solicitations and contracts for MRE and tray pack semi perishable items.

- SUBPART 45.3 – PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

- 45.302 Providing facilities.

- 45.302-1 Policy.
- 45.302-6(90) Provisions and clauses – Government-owned facilities.

- 45.306(90) Special tooling - criteria for acquisition.

- 45.306-5(91) Government-owned special tooling.
- 45.306-5(92) Use of Government-owned tooling.
- 45.306-5(93) Uncertainty regarding the existence of Government-owned special tooling or test equipment.
- 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

(Revised November 19, 2013, through PROCLTR 2014-33)

TABLE OF CONTENTS

45.000 Scope of part.

SUBPART 45.1 – GENERAL

45.102-90 Policy.

45.103 Responsibility and liability for Government property.

45.105-90 Records of Government Property.

45.106 Government Property Clauses.

45.106(90) Evaluation of use of government furnished property in solicitations.

45.106(91) Government property furnished to the contractor.

45.106(92)(a) GFP shipped to the contractor at Government expense.

45.106(93) GFP provided to a contractor in the performance of a contract for DLA Land and Maritime.

45.106(94) Government-furnished property in clothing and textiles solicitations and awards.

45.106(95) Government-furnished Material in clothing and textiles solicitations and contracts.

45.106(96) Government-furnished property cloth in C&T solicitations.

45.106(97) Provisions relating to materials to be furnished by the Government.

45.106(98) Government-furnished property (GFP) provisions – dyeing & finishing contracts, in C&T solicitations and contracts.

45.106(99) Dyeing and finishing of textiles.

45.106(100) Availability of clothing patterns.

45.106(101) Solicitations and contracts that provide for GFP.

45.106(102) Government-furnished material – NIB and SourceAmerica.

45.106(103) Government-owned property (bulk storage contract).

45.106(104) Cartoons and guide samples for embroidered insignia.

45.106(105) Government Samples - clothing and textiles solicitations.

45.106(106) Sized Items - clothing and textiles solicitations and contracts.

45.106(107) Firm and flexible sizes - clothing and textiles solicitations and contracts.

45.106(108) Special measurements - clothing and textiles solicitations and contracts.

45.106(109) Contractor control of Government-furnished property – subsistence acquisitions.

45.106(110) Special instructions for compressed gas requirements.

45.106(111) Government-furnished property (GFP) mechanical gauges (loaned).

45.106(112) Allowable losses – subsistence solicitations and contracts for MRE and tray pack semi perishable items.

SUBPART 45.3 – PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

45.302 Providing facilities.

45.302-1 Policy.

45.302-6(90) Provisions and clauses – Government-owned facilities.

45.306(90) Special tooling – criteria for acquisition.

45.306-5(91) Government-owned special tooling.

45.306-5(92) Use of Government-owned tooling.

45.306-5(93) Uncertainty regarding the existence of Government-owned special tooling or test equipment.

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 and the appropriate Government property 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 Government property 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

45.102-90 Policy.

Government property 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.

45.103 Responsibility and liability for Government property.

(S-90) Management of property associated with CIT.

(a) Each contracting activity or office that has Government property will establish a property focal point who will:

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

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

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

(S-91) Vendor stock retention model.

(1) Refer to DLA Instruction 4000.3, Accountability and Management of DLA-Owned Contract Property, for procedures to establish and maintain records accountability in solicitations and contracts for Government contract property of any value furnished to contractors, or acquired by contractors and third parties, as Government-furnished property (GFP).

45.106 Government property clauses.

45.106(90) Evaluation of use of government furnished property in solicitations.

Use 52.245-9001 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) Government property furnished to the contractor.

Use 52.245-9002 in awards when Government property (tooling, molding, or other than Government material) is to be furnished to the contractor, and where FAR 52.245-2 or 52.245-4 is used. Fill in the blanks as appropriate.

45.106(92)(a) GFP shipped to the contractor at Government expense.

Use 52.245-9003 in 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 FAR 52.245-2 or 52.245-4 are used, except when Government-furnished precious metals are to be provided or special tooling is to be provided which is managed by a center. Buyer should complete paragraphs (a), (c), and (e). The offeror should complete paragraph (b).

45.106(93) GFP provided to a contractor in the performance of a contract for DLA Land and Maritime.

Use 52.245-9009 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) Government-furnished property in clothing and textiles solicitations and awards.

Use 52.245-9010 in clothing and 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) Government-furnished material in clothing and textiles solicitations and contracts.

Use 52.245-9011 in clothing and textiles (C&T) 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) Government-furnished property cloth in C&T solicitations.

Use 52.245-9012 in C&T solicitations where cloth is furnished under non-bailment procedures.

45.106(97) Provisions relating to materials to be furnished by the Government.

Use 52.245-9013 in clothing and textiles solicitations and contracts for footwear items where GFP (Non-Bailment) is involved. Insert entries in paragraphs (a), (b), and (f)(2)(ii) and (iii).

45.106(98) Government-furnished property (GFP) provisions – dyeing & finishing contracts, in C&T solicitations and contracts.

Use 52.245-9014 in C&T 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) Dyeing and finishing of textiles.

Use 52.245-9015 in C&T 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) Availability of clothing patterns.

Use 52.245-9016 in C&T solicitations and contracts when the Government will furnish clothing patterns.

45.106(101) Solicitations and contracts that provide for GFP.

Use 52.245-9017 in C&T solicitations and contracts that provide for GFP, except dyeing and finishing contracts.

45.106(102) Government-furnished material – NIB and NISH.

Use 52.245-9018 in Clothing and Textiles delivery orders involving GFM for NIB and SourceAmerica. In paragraph (a), insert nomenclature, unit price, allowance per unit, and value of allowance per unit of the GFM provided.

45.106(103) Government-owned property (bulk storage contract).

Use 52.245-9019 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) Cartoons and guide samples for embroidered insignia.

Use 52.245-9020 in clothing and textiles solicitations for embroidered insignia.

45.106(105) Government Samples - clothing and textiles solicitations.

Use 52.245-9021 in clothing and textiles solicitations when there are no end item samples available for loan to bidders, but a sample is available at the contracting activity or office for inspection.

45.106(106) Sized Items - clothing and textiles solicitations and contracts.

Use 52.245-9022 in clothing and textiles solicitations and contracts for sized items.

45.106(107) Firm and flexible sizes - clothing and textiles solicitations and contracts.

Use 52.245-9023 in clothing and textiles solicitations and contracts for cotton or woolen sized items involving GFM.

45.106(108) Special measurements - clothing and textiles solicitations and contracts.

Use 52.245-9024 in clothing and 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) Contractor control of Government-furnished property – subsistence acquisitions.

Use 52.245-9025 in subsistence acquisitions for MRE, semi-perishable items.

45.106(110) Special instructions for compressed gas requirements.

Use 52.245-9026 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) Government-furnished property (GFP) mechanical gauges (loaned).

Use 52.245-9027 when the POT requires use of Government-furnished mechanical gauges (including FSCs 5995 and 6150), managed by U.S. Army TMDE Support Center, Tobyhanna, Pennsylvania. Insert data regarding gauges in paragraph (a) of 52.245-9003 under “identification of property”.

45.106(112) Allowable losses – subsistence solicitations and contracts for MRE and tray pack semi perishable items.

Use 52.245-9028 in subsistence solicitations and contracts for MRE and tray pack semi-perishable items.

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 Acquisition 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, the following certification must be made by a contracting official at least one level above the contracting officer:

(S-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.

(S-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) Provisions and clauses – Government-owned facilities.

(a) Insert 52.245-9008 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, 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 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) 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) Government-owned special tooling.

Use 52.245-9005 when Government-owned special tooling is mentioned in the POT or in the manufacturer's part number data field of the PR trailer. The buyer should coordinate with the appropriate contracting activity or office special tooling coordinator to obtain availability information and data for paragraph (a). Use 52.245-9006, DFARS 252.245-7001, and FAR 2.245-1 or 52.245-2, as appropriate, with this clause. Purchase orders containing this clause will be bilateral. The buyer shall indicate on distribution schedule that one copy of award be furnished to special tooling coordinator.

45.306-5(92) Use of Government-owned tooling.

Use 52.245-9006 in contracts when Government-owned special tooling is mentioned in the POT or in the manufacturer's part number data field of the PR trailer. If Government 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 52.245-9005 with this clause.

45.306-5(93) Uncertainty regarding the existence of Government-owned special tooling or test equipment.

Insert 52.245-9007 in contracts 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 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 Acquisition 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 Government property to a DLA contract must have appropriate justification. 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 it 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 an NSN is not assigned;

Noun;

Acquisition cost;

Condition code; and

Age, if known.

45.612 Removal and storage.

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

(b) Storage of Government property for which there is not a known contract requirement will be separately priced and directly funded by the DLA contracting activity or 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 Acquisition J74.

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