[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6894]


[Federal Register: March 28, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Parts 45 and 52

[FAR Case 91-57]


Federal Acquisition Regulation; Disposal of Hazardous Government 
Property

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

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are considering amending Federal 
Acquisition Regulation (FAR) subpart, Reporting, Redistribution, and 
Disposal of Contractor Inventory, by adding a paragraph which will 
reference subpart, Hazardous Material Identification and Material 
Safety Data, and agency regulations, in order to provide assistance to 
the contracting officer in identifying hazardous Government property; 
specifying that unless the contract states otherwise, the Government 
may abandon any nonhazardous contractor inventory in place, and the 
Government shall not abandon contractor inventory that is hazardous on 
the contractor's premises without the contractor's written consent; and 
including in designated standard property clauses the requirement that 
the contractor promptly identify to the contracting officer any 
Government property considered hazardous upon notice that the 
Government intends to abandon the property. This regulatory action was 
not subject to Office of Management and Budget review pursuant to 
Executive Order No. 12866 dated September 30, 1993.

DATES: Comments should be submitted on or before May 27, 1994 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets, NW., room 4037, Washington, DC 20405.
    Please cite FAR case 91-57 in all correspondence related to this 
case.

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 FAR case 91-57.

SUPPLEMENTARY INFORMATION:

A. Background

    The changes are a result of industry concern that the language in 
the standard property clauses does not preclude the contracting officer 
from simply abandoning hazardous Government property in place. Sections 
45.603, 45.611, and the standard property clauses at 52.245-2, -4, -5, 
-7, and -11 are affected by this change.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the 
revision will not have a significant cost or administrative impact on 
contractors or offerors. An Initial Regulatory Flexibility Analysis 
has, therefore, not been performed. Comments from small entities 
concerning the affected FAR parts will also be considered in accordance 
with section 610 of the Act. Such comments must be submitted separately 
and cite 5 U.S.C. 601, et seq., (FAR case 91-57) in correspondence.

C. Paperwork Reduction Act

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

List of Subjects in 48 CFR Parts 45 and 52

    Government procurement.

    Dated: March 18, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR parts 45 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR parts 45 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 45--GOVERNMENT PROPERTY

    2. Section 45.603 is amended by designating the introductory 
paragraph as paragarph (a); redesignating paragraphs (a) through (g) as 
paragraphs (1) through (7); and adding new paragraph (b) to read as 
follows:


45.603  Disposal methods.

    (a) * * *
    (b) For assistance in determining if Government property under a 
contract is hazardous, the contracting officer should refer to subpart 
23.3, Hazardous Material Identification and Material Safety Data, and 
the contracting agency's regulations as sources for guidance.
    3. Section 45.611 is amended by revising paragraph (b) to read as 
follows:


45.611  Destruction or abandonment.

* * * * *
    (b) Unless precluded by the contract, the Government may abandon 
any non-hazardous contractor inventory in place. The Government shall 
not abandon contractor inventory that is hazardous on the contractor's 
premises without the contractor's written consent.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 52.245-2 is amended by revising the date of the clause 
heading to read ``(XXX 1994)''; removing the introductory text of 
paragraph (j); and revising paragraph (j)(1) and the first sentence of 
paragraph (j)(2) to read as follows:


52.245-2  Government Property (Fixed-Price Contracts).

* * * * *
    (j) Abandonment and restoration of Contractor's premises. (1) 
Unless otherwise provided herein, the Government may abandon any 
non-hazardous Government property in place. The Government will not 
abandon hazardous Government property without the Contractor's 
written consent. The Contractor shall promptly identify to the 
Contracting Officer any Government property considered hazardous 
upon notice that the Government intends to abandon the property. 
When Government property is abandoned, all obligations of the 
Government regarding such abandoned property shall cease.
    (2) Unless otherwise provided herein, the Government has no 
obligation to restore or rehabilitate the Contractor's premises 
under any circumstances (e.g., abandonment, disposition upon 
completion of need, or upon contract competition).* * *
* * * * *
    5. Section 52.245-4 is amended by revising the date in the clause 
heading to read ``(XXX 1994)''; redesignating paragraph (e) as 
paragraph (f); adding a new paragraph (e); and removing the citation 
``(R7-104.24(f) 1964 NOV)'' following ``(End of clause)'' to read as 
follows:


52.245-4  Government-Furnished Property (Short Form).

* * * * *
    (e) Unless otherwise provided herein, the Government may abandon 
any non-hazardous Government property in place. The Government shall 
not abandon hazardous Government property without the Contractor's 
written consent. The Contractor shall promptly identify to the 
Contracting Officer any Government property considered hazardous 
upon notice that the Government intends to abandon the property. 
When Government property is abandoned, all obligations of the 
Government regarding such abandoned property shall cease.
* * * * *
    6. Section 52.245-5 is amended by revising the date in the clause 
heading to read ``(XXX 1994''; removing the introductory text of 
paragraph (j); and revising paragraph (j)(1) and the first sentence of 
paragraph (j)(2) to read as follows:


52.245-5  Government Property (Cost Reimbursement, Time-and-Material, 
or Labor-Hour (Contracts).

* * * * *
    (j) Abandonment and restoration of Contractor's premises. (1) 
Unless otherwise provided herein, the Government may abandon any 
non-hazardous Government property in place. The Government will not 
abandon hazardous Government property without the Contractor's 
written consent. The Contractor shall promptly identify to the 
Contracting Officer any Government property considered hazardous 
upon notice that the Government intends to abandon the property. 
When Government property is abandoned, all obligations of the 
Government regarding such abandoned property shall cease.
    (2) Unless otherwise provided herein, the Government has no 
obligation to restore or rehabilitate the Contractor's premises 
under any circumstances (e.g., abandonment, disposition upon 
completion of need, or upon contract competition.* * *
* * * * *
    7. (a) Section 52.245-7 is amended by revising the introductory 
text, the date in the clause heading to read ``(XXX 1994)'', the 
introductory text of paragraph (n)(4), paragraphs (n)(4)(i) and 
(n)(4)(ii) introductory text, and removing after ``(End of clause)'' 
the parentheticals to read as follows:


52.245-7  Government Property (Consolidated Facilities).

    As prescribed in 45.302-6(a), insert the following clause:
* * * * *
    (n) * * *
    (4) Within 120 days after the Contractor accounts for any 
facilities under subparagraph (n)(3) of this clause, the Contracting 
Officer shall give written notice to the Contractor as to the 
disposition of the facilities, except as otherwise provided in 
subparagraph (n)(6) of this clause.
    (i) The Government may abandon the facilities in place, in which 
case all obligations of the Government regarding such abandoned 
facilities and the restoration or rehabilitation of the premises in 
and on which they are located shall immediately cease. The 
Government will not abandon hazardous facilities without the 
Contractor's written consent. The Contractor shall promptly identify 
to the Contracting Officer any facilities considered hazardous upon 
notice that the Government intends to abandon the facilities.
    (ii) If the Government does not abandon the facilities, the 
Government will require the Contractor to comply, at Government 
expense, with such directions as the Contracting Officer may give 
with respect to--
* * * * *


52.245-7  [Amended]

    7. (b) Section 52.245-7 is also amended by adding the words ``of 
this clause'' in the following places:
    (1) Paragraph (c), first sentence, after the words ``paragraph 
(m)'';
    (2) Paragraph (n)(1) after the words ``subparagraph (n)(2)'';
    (3) Paragraph (n)(3) after the words ``paragraph (m)'';
    (4) Twice in paragraph (n)(5) after the words ``subparagraph 
(n)(4)'' each time they appear;
    (5) Paragraph (n)(7) after the words ``subparagraph (n)(6)'';
    (6) Paragraph (n)(8) after the words ``subparagraph (n)(4)''; and
    (7) Paragraph (n)(9) after the words ``subdivision (n)(4)(ii)''.
    8. Section 52.245-11 is amended by--
    (a) Revising the date in the clause heading to read ``(XXX 1994)'';
    (b) Removing from paragraph (l)(1) the word ``whose'' and inserting 
in its place ``for which'';
    (c) Revising paragraph (l)(3);
    (d) Removing the second sentence from the introductory text of 
paragraph (l)(4);
    (e) Revising paragraphs (l)(4)(i) and (l)(4)(ii) introductory text; 
and
    (f) Removing the parentheticals following ``(End of clause)'' to 
read as follows:


52.245-11  Government Property (Facilities Use).

* * * * *
    (l) * * *
    (3) Within 60 days after the effective date of any notice of 
termination given under paragraph (k) of this clause, or within such 
longer period as the Contracting Officer may approve, in writing, 
the Contractor shall submit to the Contracting Officer, in a form 
satisfactory to the Contracting Officer, an accounting for all the 
facilities covered by the notice.
    (4) * * *
    (i) The Government may abandon the facilities in place, in which 
case all ogligations of the Government regarding such abandoned 
facilities and the restoration or rehabilitation of the premises in 
and on which they are located shall immediately cease. The 
Government will not abandon hazardous facilities without the 
Contractor's written consent. The Contractor shall promptly identify 
to the Contracting Officer any facilities considered hazardous upon 
notice that the Government intends to abandon the facilities.
    (ii) If the Government does not abandon the facilities, the 
Government will require the Contractor to comply, at Government 
expense, with such directions as the Contracting Officer may give 
with respect to--
* * * * *


52.245-11  [Amended]

    9. Section 52.245-11 is also amended by adding the words ``of this 
clause'' in the following places:
    (a) Paragraph (l) introductory text after the words ``paragraph 
(k)'' and ``subparagraph (l)(2)'';
    (b) Paragraph (l)(4) introductory text after the words 
``subparagraph (l)(3)'' and ``subparagraph (l)(6)'';
    (c) In the last sentence of paragraph (l)(5) after the words 
``subparagraph (l)(4)'';
    (d) Paragraph (l)(7) after the words ``subparagraph (l)(6)''
    (e) Paragraph (l) (8) after the words ``subparagraph (l)(4)''; and
    (f) Paragraph (l)(9), first sentence, after the words ``subdivision 
(l)(4)(ii)''.
* * * * *
[FR Doc. 94-6894 Filed 3-25-94; 8:45 am]
BILLING CODE 6820-34-M