[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4399]


[[Page Unknown]]

[Federal Register: March 10, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Parts 47 and 52

[FAC 90-20; FAR Case 91-10; Item XVIII]
RIN 9000-AE66

 

Federal Acquisition Regulation; Returnable Cylinders

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule that amends 
the Federal Acquisition Regulation (FAR) by adding a clause entitled 
Returnable Cylinders, with its prescriptive language. The clause 
prescribes the Government's responsibilities relating to the return and 
accountability of contractor-furnished returnable cylinders.

EFFECTIVE DATE: May 9, 1994.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-20, FAR case 91-10.

SUPPLEMENTARY INFORMATION:

A. Background

    This change was recommended as a result of the Defense Management 
Review Regulatory Reform initiative. The Councils determined that 
language in FAR supplements would be useful for all Federal contracting 
activities. The proposed rule was published in the Federal Register at 
56 FR 14298, April 8, 1991. Five substantive comments were received. 
After evaluating the comments, the coverage has been amended (1) to 
apply only to cylinders; (2) by adding a definition of the term 
``cylinder'' in the clause; (3) by revising paragraphs (a) and (b) of 
the clause to eliminate inconsistencies; and (4) to refer to a ``loan 
period'' in place of the debit/credit concept previously referenced.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because it prescribes Government responsibilities related 
to the return and accountability of returnable cylinders without 
imposing an additional burden on contractors.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 47 and 52

    Government procurement.

    Dated: February 15, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
    Therefore 48 CFR parts 47 and 52 be amended as set forth below:
    1. The authority citation for 48 CFR parts 47 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. Chapter 137; and 42 
U.S.C. 2473(c).

PART 47--TRANSPORTATION

    2. Section 47.305-17 is added to read as follows:


47.305-17  Returnable cylinders.

    The contracting officer shall insert the clause at 52.247-66, 
Returnable Cylinders, in a solicitation and contract whenever the 
contract involves the purchase of gas in contractor-furnished 
returnable cylinders and the contractor retains title to the cylinders.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.247-66 is added to read as follows:


52.247-66  Returnable Cylinders.

    As prescribed in 47.305-17, insert the following clause:

Returnable Cylinders (May 1994)

    (a) Cylinder, referred to in this clause, is a pressure vessel 
designed for pressures higher than 40 psia and having a circular 
cross section excluding a portable tank, multitank car tank, cargo 
tank or tank car.
    (b) Returnable cylinders shall remain the Contractor's property 
but shall be loaned without charge to the Government for a period of 
____ days [Contracting Officer shall insert number of days] 
(hereafter referred to as loan period) following the day of delivery 
to the f.o.b. point specified in the contract. Any cylinder not 
returned within the loan period shall be charged a daily rental 
beginning with the first day after the loan period expires, to and 
including the day the cylinders are delivered to the Contractor (if 
the original delivery was f.o.b. origin) or are delivered or made 
available for delivery to the Contractor's designated carrier (if 
the original delivery was f.o.b. destination). The Government shall 
pay the Contractor a rental of $____________ [Contracting Officer 
shall insert dollar amount for rental, after evaluation of offers] 
per cylinder, per day, computed separately for cylinders by type, 
size, and capacity and for each point of delivery named in the 
contract. No rental shall accrue to the Contractor in excess of 
replacement value per cylinder specified in paragraph (c) of this 
clause.
    (c) For each cylinder lost or damaged beyond repair while in the 
Government's possession, the Government shall pay to the Contractor 
the replacement value, less the allocable rental paid for that 
cylinder as follows: ____________________ [Contracting Officer shall 
insert the cylinder types, sizes, capacities, and associated 
replacement values.] These cylinders shall become Government 
property.
    (d) If any lost cylinder is located within ____________________ 
[Contracting Officer shall insert number of days] calendar days 
after payment by the Government, it may be returned to the 
Contractor by the Government, and the Contractor shall pay to the 
Government an amount equal to the replacement value, less rental 
computed in accordance with paragraph (b) of this clause, beginning 
at the expiration of the loan period specified in paragraph (b) of 
this clause, and continuing to the date on which the cylinder was 
delivered to the Contractor.

(End of clause)

[FR Doc. 94-4399 Filed 3-9-94; 8:45 am]
BILLING CODE 6820-34-M