[Federal Register Volume 73, Number 232 (Tuesday, December 2, 2008)]
[Proposed Rules]
[Pages 73202-73210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28634]


-----------------------------------------------------------------------

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1845 and 1852

RIN 2700-AD37


Government Property

AGENCY: National Aeronautics and Space Administration.

ACTION: Proposed rule.

-----------------------------------------------------------------------

[[Page 73203]]

SUMMARY: NASA proposes to revise the NASA FAR Supplement (NFS) to 
update Agency-level, property-related provisions, clauses, 
prescriptions and procedures to be consistent with changes made to Part 
45 and clauses 52.245 of the Federal Acquisition Regulation in Federal 
Acquisition Circular (FAC) 2005-17. FAC 2005-17 significantly rewrote 
FAR Part 45, Government Property, and changed property related 
definitions, provisions and clauses which are required to be used in 
all solicitations and contracts issued after the effective date of June 
14, 2007.

DATES: Interested parties should submit comments on or before February 
2, 2009, to be considered in formulation of the final rule.

ADDRESSES: Interested parties may submit comments, identified by RIN 
number 2700-AD37, via the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. 
Comments may also be submitted to Carl Weber (Mail Stop 5K80), NASA 
Headquarters, Office of Procurement, Contract Management Division, 
Washington, DC 20546. Comments may also be submitted by e-mail to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Carl Weber, NASA, Office of 
Procurement, Contract Management Division (Suite 5K80); (202) 358-1784; 
e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    Federal Acquisition Circular (FAC) 2005-17 implemented the final 
rule amending the Federal Acquisition Regulation (FAR) to simplify 
procedures, clarify language, and eliminate obsolete requirements 
related to the management and disposition of Government property in the 
possession of contractors. FAC 2005-17 significantly rewrote FAR Part 
45, Government Property, and changed property-related definitions, 
provisions and clauses which are required to be used in all 
solicitations and contracts issued after the effective date of June 14, 
2007. The purpose of this proposed rule is to establish a new NASA FAR 
Supplement (NFS) Part 1845, Government Property, and related Agency-
level solicitation provisions and contract clauses in NFS 1852.245, 
that are consistent with the rewrite of FAR Part 45. This rewrite of 
NFS Part 1845 and sections 1852.245 realigns Agency regulations with 
the new definitions, practices and policy of the FAR, a policy that 
fosters efficiency, flexibility, innovation and creativity while 
continuing to protect the Government's interest. In addition, this 
proposed rule includes Agency-level procedures, solicitation 
provisions, and contract clause language necessary to identify 
contractor-acquired assets which become capital assets of the 
Government, in order to comply with Statement of Federal Financial 
Accounting Standard (SFFAS) No. 6.
    This is not a significant regulatory action and, therefore, is not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This proposed 
rule is not a major rule under 5 U.S.C. 804.

 B. Regulatory Flexibility Act

    NASA certifies that this proposed rule will not 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 it largely implements changes to the FAR Part 45 and sections 
52.245 set forth in FAC 2005-17, and does not impose a significant 
economic impact beyond that addressed in the FAC 2005-17 publication of 
the FAR final rule.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) is applicable. 
However, the NFS changes do not impose information collection 
requirements that require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501, et seq. beyond those identified and 
approved as part of the FAR Part 45 rewrite contained in FAC 2005-17 
(Ref OMB control No. 9000-0075) and those previously approved under 
NASA clearances (Ref OMB control Nos. 2700-0017, 2700-0088, and 2700-
0089).

List of Subjects in 48 CFR Parts 1845 and 1852

    Government procurement, Government property.

William P. McNally,
Assistant Administrator for Procurement.

    Accordingly, 48 CFR Parts 1845 and 1852 are proposed to be amended 
as follows:
    1. The authority citation for 48 CFR Parts 1845 and 1852 continues 
to read as follows:

    Authority: 42 U.S.C. 2455(a), 2473(c)(1).

PART 1845--GOVERNMENT PROPERTY

    2. Subpart 1845.1 is revised to read as follows:
Subpart 1845.1--General
1845.107 Contract clauses.
1845.107-70 NASA solicitation provisions and contract clauses.

    (a)(1) The contracting officer shall insert the clause at 1852.245-
70, Contractor Requests for Government-Provided Property, in cost 
reimbursement solicitations and contracts.
    (2) Use the clause with its Alternate I when the center Supply and 
Equipment Management Officer (SEMO) consents to permit the contractor 
to screen Government inventory for available property in lieu of 
contractor acquisition of new items.
    (b)(1) The contracting officer shall insert the clause at 1852.245-
71, Installation--Accountable Government Property, in solicitations and 
contracts when Government property is to be made available to a 
contractor working on a NASA installation, and the Government will 
maintain accountability for the property. The contracting officer shall 
list in the clause the applicable property user responsibilities. For 
purposes of this clause, NASA installations include local off-site 
buildings owned or leased by NASA.
    (2) Use of this clause is subject to the SEMO's concurrence that 
adequate Government property management resources are available for 
oversight of the property in accordance with all applicable NASA 
installation property management directives.
    (3) The contracting officer shall identify, in the contract, the 
nature, quantity, and acquisition cost of the property and make it 
available on a no-charge basis.
    (4) The contracting officer shall use the clause with its Alternate 
I if the SEMO requests that the contractor be restricted from use of 
the center central receiving facility for the purposes of receiving 
contractor-acquired property.
    (5) For contractors with both onsite and offsite performance 
requirements, contracting officers shall list property provided for 
offsite use separately in the contract. This Government property is 
furnished under FAR 52.245-1, Government Property, and remains 
accountable to the contractor during its use on the contract. This 
Government property is not subject to the clause at 1852.245-71, 
Installation--Accountable Government Property. The contracting officer 
shall address any specific maintenance considerations (e.g., requiring 
or precluding use of an installation calibration or repair facility) 
elsewhere in the contract.
    (c) The contracting officer shall insert the clause at 1852.245-72, 
Liability for

[[Page 73204]]

Government Property Furnished for Repair or Other Services, in fixed-
price, time-and-material, and labor-hour solicitations and contracts 
(except for experimental, developmental, or research work with 
educational or nonprofit institutions, where no profit is contemplated) 
for repair, modification, rehabilitation, or other servicing of 
Government property, if such property is to be furnished to a 
contractor for that purpose and no other Government property is to be 
furnished. The contracting officer shall not require additional 
insurance under the clause unless the circumstances clearly indicate 
advantages to the Government.
    (d) The contracting officer shall insert the clause at 1852.245-73, 
Financial Reporting of NASA Property in the Custody of Contractors, in 
cost reimbursement solicitations and contracts unless all property to 
be provided is subject to the clause at 1852.245-71, Installation-
Accountable Government Property. The clause shall also be included in 
other types of solicitations and contracts when it is known at award 
that property will be provided to the contractor or that the contractor 
will acquire property title to which will vest in the Government prior 
to delivery.
    (e) The contracting officer shall insert the clause at 1852.245-74, 
Identification and Marking of Government Property, in solicitations and 
contracts that--
    (1) Include the clause at FAR 52.245-1; or
    (2) Require the delivery of supplies.
    (f) The contracting officer shall insert the clause at 1852.245-75, 
Property Management Changes, in solicitations and contracts that 
provide for progress payments or include any of the property clauses 
prescribed in FAR Part 45.
    (g) The contracting officer shall insert the clause at 1852.245-76, 
List of Government Property Furnished Pursuant to FAR 52.245-1, in 
solicitations and contracts when the contractor is to be accountable 
under the contract for Government property.
    (h) The contracting officer shall insert the clause at 1852.245-77, 
List of Government Property Furnished Pursuant to FAR 52.245-2, in 
solicitations and contracts containing the clause at 52.245-2, 
Government Property Installation Operation Services.
    (1) The contracting officer shall insert the following language in 
the blanks in paragraph (e) of the clause at 52.245-2, when including 
this clause in solicitations and contracts: ``The Government property 
provided under this clause is identified in clause 1852.245-77 of this 
contract.''
    (i) The contracting officer shall insert the clause at 1852.245-78, 
Physical Inventory of Capital Personal Property, in cost reimbursement 
and fixed-price solicitations and contracts that provide Government 
property.
    (j) The contracting officer shall insert the clause at 1852.245-79, 
Records and Disposition Reports for Government Property with Potential 
Historic or Significant Real Value, in solicitations and contracts 
when, after consultation with the center Public Affairs Officers, it is 
determined that the items acquired for or produced by the contract are 
likely to have historic significance or increased value due to their 
use in support of NASA projects and programs.
    (k) The contracting officer shall insert the provision at 1852.245-
80, Government Property Management Information, in solicitations when 
it is known, or there is a reasonable chance, that Government property 
will be provided to the contractor for contract performance.
    (l) The contracting officer shall insert the provision at 1852.245-
81, List of Available Government Property, in solicitations when 
Government property will be made available for contract performance.
    (m) The contracting officer shall insert the clause at 1852.245-82, 
Occupancy Management Requirements, in solicitations and contracts that 
require performance on, or in, any NASA Center, Installation, facility 
or other NASA owned property.
    (n) The contracting officer shall insert the clause at 1852.245-83 
Real Property Management Requirements in solicitations and contracts 
for acquisition, construction, modification (including when the 
modification is a consequence of another approved task, e.g., 
installation of telephonic or local area network equipment), 
demolition, or management of real property.
    3. Subpart 1845.3 is added to read as follows:

Subpart 1845.3--Authorizing the Use and Rental of Government 
Property


1845.301-71  Use of Government property for commercial work.

    (a) The coverage at FAR 45.3 applies to a contractor's commercial 
(any non-Government) use of any NASA equipment.


1845.302  Use of Government property on contracts with foreign 
governments or international organizations.

    (a) NASA contracting officers will recover a fair share of the cost 
of Government property if such property is used in performing services 
or manufacturing articles for foreign countries or for international 
organizations.


1845.4  [Reserved]

    4. Subpart 1845.4 is removed and reserved.
    5. Subpart 1845.5 is revised to read as follows:
Subpart 1845.5--Support Government Property Administration
1845.501-70 General.
1845.503-70 Delegations of property administration and plant 
clearance.
1845.505-70 Responsibilities of the property administrator.
1845.506-70 Responsibilities of the plant clearance officer.

Subpart 1845.5--Support Government Property Administration


1845.501-70  General.

    (b) When the Industrial Property Officer or Property Administrator 
determines that the contractor's proposed systems, standards and 
practices for the management of Government property are inadequate to 
manage Government property, the Contracting Officer will:
    (1) Require the contractor to provide a written revision that 
addresses the determination of the Industrial Property Officer or 
Property Administrator.


1845.503-70  Delegations of property administration and plant 
clearance.

    (e) Under the clause at 1852.245-71, Installation-Accountable 
Government Property, property is managed by center logistics functions 
using NASA internal policy and procedural guidance, except--
    (1) When contractors are provided or are allowed the use of 
property that is not governed by that procedural guidance, management 
of that property is governed by the applicable FAR clause.
    (2) When the contractor is responsible for performance of any 
segment of a property system under a FAR property clause, then property 
administration and plant clearance are required.


1845.505-70  Responsibilities of the property administrator.

    (c) When the property administrator determines that all or a 
portion of a contractor's property management practices and processes 
do not afford sufficient protection against loss, damage or destruction 
of Government property:
    (1) The property administrator shall increase surveillance to 
prevent, to the extent possible, any loss, damage, or destruction of 
Government property; and

[[Page 73205]]

    (2) Advise the contracting officer of any known or reported 
incidence of loss, damage or destruction identified during any period 
in which the contracting officer has revoked the Government's 
acceptance of risk.
    (d) The property administrator shall review records and the results 
of contractor actions to identify any and all incidence where the 
contractor fails to report property no longer required for performance 
for periods longer than called for in their standards and practices.


1845.506-70  Responsibilities of the plant clearance officer.

    When plant clearance is not delegated to DOD, NASA plant clearance 
officers shall be responsible for--
    (a) Providing the contractor with instructions and advice regarding 
the proper preparation of inventory schedules;
    (b) Accepting or rejecting inventory schedules;
    (c) Conducting or arranging for inventory verification;
    (d) Initiating prescribed screening and effecting resulting 
actions;
    (e) Final plant clearance of contractor inventory;
    (f) Pre-inventory scrap determinations, as appropriate;
    (g) Evaluating the adequacy of the contractor's procedures for 
property disposal and providing feedback to the Property Administrator 
regarding the contractor's performance in property disposal activities;
    (h) Determining the method of disposal;
    (i) Surveillance of any contractor-conducted sales;
    (j) Accounting for all contractor inventory reported by the 
contractor;
    (k) Advising and assisting, as appropriate, the contractor, the 
Supply and Equipment Management Officer (SEMO) and other Federal 
agencies in all actions relating to the proper and timely disposal of 
contractor inventory;
    (l) Approving the method of sale, evaluating bids, and approving 
sale prices for any contractor-conducted sales; and
    (m) Recommending the reasonableness of selling expenses related to 
any contractor-conducted sales.

Subpart 1845.6--Reporting, Reutilization, and Disposal

    6. Section 1845.606-70 is added to read as follows:


1845.606-70  Contractor's approved scrap procedure.

    (a) When a contractor has an approved scrap procedure, certain 
property may be routinely disposed of in accordance with that procedure 
and not processed under this section.
    (d) Property in scrap condition, other than that disposed of 
through the contractor's approved scrap procedure, shall be reported on 
appropriate inventory schedules for disposition in accordance with the 
provisions of FAR Part 45 and NFS 1845.
    7. Paragraph (c) of section 1845.7101-2 is revised to read as 
follows:


1845.7101-2  Transfer of property.

* * * * *
    (c) Incomplete documentation. If contractors receive transfer 
documents having insufficient detail to properly record the transfer 
(e.g., omission of property classification, FSC, unit acquisition cost, 
Government acquisition date, required signatures, etc.) they shall 
request the omitted data directly from the shipping contractor or 
through the property administrator. The contracting officer shall 
assist the Government Property Administrator and the receiving 
contractor to obtain all required information for the receiving 
contractor to establish adequate property records.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    8. In part 1852, sections 1852.245-70 through 1852.245-80 are 
revised and sections 1852.245-81 through 1852.245-83 are added to read 
as follows:
Subpart 1852.2--Text of Provisions and Clauses
* * * * *
1852.245-70 Contractor requests for Government-provided property.
1852.245-71 Installation-accountable Government property.
1852.245-72 Liability for Government property furnished for repair 
or other services.
1852.245-73 Financial reporting of NASA property in the custody of 
contractors.
1852.245-74 Identification and marking of Government equipment.
1852.245-75 Property management changes.
1852.245-76 List of Government property furnished pursuant to FAR 
52.245-1.
1852.245-77 List of Government property furnished pursuant to FAR 
52.245-2.
1852.245-78 Physical inventory of capital personal property
1852.245-79 Records and disposition reports for Government property 
with potential historic or significant real value.
1852.245-80 Government property management information.
1852.245-81 List of available Government property.
1852.245-82 Occupancy management requirements.
1852.245-83 Real property management requirements.
* * * * *

Subpart 1852.2--Text of Provisions and Clauses

* * * * *


1852.245-70  Contractor requests for Government-provided property.

    As prescribed in 1845.107-70(a)(1), insert the following clause:

Contractor Requests for Government-Provided Property (XX/XX)

    (a) The Contractor shall provide all property required for the 
performance of this contract. The Contractor shall not acquire or 
construct items of property to which the Government will have title 
under the provisions of this contract without the Contracting 
Officer's written authorization. Property which will be acquired as 
a deliverable end item as material or as a component for 
incorporation into a deliverable end item is exempt from this 
requirement.
    (b)(1) In the event the Contractor is unable to provide the 
property necessary for performance, and the Contractor requests 
provision of property by the Government, the Contractor's request 
shall--
    (i) Justify the need for the property;
    (ii) Provide the reasons why contractor-owned property cannot be 
used;
    (iii) Describe the property in sufficient detail to enable the 
Government to screen its inventories for available property or to 
otherwise acquire property, including applicable manufacturer, 
model, part, catalog, National Stock Number or other pertinent 
identifiers;
    (iv) Combine requests for quantities of items with identical 
descriptions and estimated values when the estimated values do not 
exceed $100,000 per unit; and
    (v) Include only a single unit when the acquisition or 
construction value equals or exceeds $100,000.
    (2) Contracting Officer authorization is required for items the 
Contractor intends to manufacture as well as those it intends to 
purchase.
    (3) The Contractor shall submit requests to the Contracting 
Officer no less than 30 days in advance of the date the Contractor 
would, should it receive authorization, acquire or begin fabrication 
of the item.
    (c) The Contractor shall maintain copies of Contracting Officer 
authorizations, appropriately cross-referenced to the individual 
property record, within its property management system.
    (d) Property furnished from Government excess sources is 
provided as-is, where-is. The Government makes no warranty regarding 
its applicability for performance of the contract or its ability to 
operate. Failure of property obtained from Government excess sources 
under this clause is insufficient reason for submission of requests 
for equitable adjustments discussed in the clause at 52.245-1, 
Government Property.

    (End of clause)

[[Page 73206]]

Alternate I (XX/XX)

    As prescribed in 1845.107-70(a)(2) add the following paragraph (e).
    (e) In the event the Contracting Officer issues written 
authorization to provide property, the Contractor shall screen 
Government sources to determine the availability of property from 
Government inventory or excess property.
    (1) The Contractor shall review NASA inventories and other 
authorized Federal excess sources for availability of items that meet 
the performance requirements of the requested property.
    (i) If the Contractor determines that a suitable item is available 
from NASA supply inventory, it shall request the item using applicable 
Center procedures.
    (ii) If the Contractor determines that an item within NASA or 
Federal excess is suitable, it shall contact the Center Industrial 
Property Officer to arrange for transfer of the item from the 
identified source to the Contractor.
    (2) If the Contractor determines that the required property is not 
available from inventory or excess sources, the Contractor shall note 
the acquisition file with a list of sources reviewed and the findings 
regarding the lack of availability. If the required property is 
available, but unsuitable for use, the contractor shall document the 
rationale for rejection of available property. The Contractor shall 
retain appropriate cross-referenced documentary evidence of the outcome 
of those screening efforts as part of its property records system.


1852.245-71  Installation-accountable Government property.

    As prescribed in 1845.107-70(b)(1), insert the following clause:

Installation--Accountable Government Property (XX/XX)

    (a) The Government property described in paragraph (c) of this 
clause may be made available to the Contractor on a no-charge basis 
for use in performance of this contract. This property shall be 
utilized only within the physical confines of the NASA installation 
that provided the property unless authorized by the Contracting 
Officer under (b)(1)(iv). Under this clause, the Government retains 
accountability for, and title to, the property, and the Contractor 
shall comply with the following:
    NASA Procedural Requirements (NPR) 4100.1, NASA Materials 
Inventory Management Manual;
    NASA Procedural Requirements (NPR) 4200.1, NASA Equipment 
Management Procedural Requirements;
    NASA Procedural Requirement (NPR) 4300.1, NASA Personal Property 
Disposal Procedural Requirements; [Insert any additional property 
management responsibilities.].
    Property not recorded in NASA property systems must be managed 
in accordance with the requirements of FAR 52.245-1. The Contractor 
shall establish and adhere to a system of written procedures to 
assure continued, effective management control and compliance with 
these user responsibilities. Such procedures must include holding 
employees liable, when appropriate, for loss, damage, or destruction 
of Government property.
    (b)(1) The official accountable recordkeeping, financial 
control, and reporting of the property subject to this clause shall 
be retained by the Government and accomplished within NASA 
management information systems prescribed by the installation Supply 
and Equipment Management Officer (SEMO) and Financial Management 
Officer. If this contract provides for the Contractor to acquire 
property, title to which will vest in the Government, the following 
additional procedures apply:
    (i) The Contractor's purchase order shall require the vendor to 
deliver the property to the installation central receiving area.
    (ii) The Contractor shall furnish a copy of each purchase order, 
prior to delivery by the vendor, to the installation central 
receiving area.
    (iii) The Contractor shall establish a record of the property as 
required by FAR 52.245-1, Government Property, and furnish to the 
Industrial Property Officer a DD Form 1149, Requisition and Invoice/
Shipping Document, (or installation equivalent) to transfer 
accountability to the Government within 5 working days after receipt 
of the property by the Contractor. The Contractor is accountable for 
all contractor-acquired property until the property is transferred 
to the Government's accountability.
    (iv) Contractor use of Government property at an off-site 
location and off-site subcontractor use require advance approval of 
the Contracting Officer and notification of the Industrial Property 
Officer. The property shall be considered Government furnished and 
the Contractor shall assume accountability and financial reporting 
responsibility. The Contractor shall establish records and property 
control procedures and maintain the property in accordance with the 
requirements of FAR 52.245-1, Government Property, until its return 
to the installation. NASA Procedural Requirements related to 
property loans shall not apply to offsite use of property by 
contractors.
    (2) After transfer of accountability to the Government, the 
Contractor shall continue to maintain such internal records as are 
necessary to execute the user responsibilities identified in 
paragraph (a) of this clause and document the acquisition, billing, 
and disposition of the property. These records and supporting 
documentation shall be made available, upon request, to the SEMO and 
any other authorized representatives of the Contracting Officer.
    (c) The following property and services are provided if checked.
    (1) Office space, work area space, and utilities. Government 
telephones are available for official purposes only.
    (2) Office furniture.
    (3) Property listed in [Insert attachment number or ``not 
applicable'' if no equipment is provided].
    (i) If the Contractor acquires property, title to which vests in 
the Government pursuant to other provisions of this contract, this 
property also shall become accountable to the Government upon its 
entry into Government records.
    (ii) The Contractor shall not bring to the installation for use 
under this contract any property owned or leased by the Contractor, 
or other property that the Contractor is accountable for under any 
other Government contract, without the Contracting Officer's prior 
written approval.
    (4) Supplies from stores stock.
    (5) Publications and blank forms stocked by the installation.
    (6) Safety and fire protection for Contractor personnel and 
facilities.
    (7) Installation service facilities: [Insert the name of the 
facilities or ``None''].
    (8) Medical treatment of a first-aid nature for Contractor 
personnel injuries or illnesses sustained during on-site duty.
    (9) Cafeteria privileges for Contractor employees during normal 
operating hours.
    (10) Building maintenance for facilities occupied by Contractor 
personnel.
    (11) Moving and hauling for office moves, movement of large 
equipment, and delivery of supplies. Moving services may be provided 
on-site, as approved by the Contracting Officer.


(End of clause)

Alternate I (XX/XX)

    As prescribed in 1845.107-70(b)(4), substitute the following for 
paragraph (b)(1)(i) of the basic clause:
    (i) The Contractor shall not utilize the installation's central 
receiving facility for receipt of contractor-acquired property. 
However, the Contractor shall provide listings suitable for 
establishing accountable records of all such property received, on a 
monthly basis, to the SEMO.


1852.245-72  Liability for Government property furnished for repair or 
other services.

    As prescribed in 1845.107-70(c), insert the following clause:

Liability for Government Property Furnished for Repair or Other 
Services (XX/XX)

    (a) This clause shall govern with respect to any Government 
property furnished to the Contractor for repair or other services 
that is to be returned to the Government. Such property, hereinafter 
referred to as ``Government property furnished for servicing,'' 
shall not be subject to FAR 52.245-1, Government Property.
    (b) The official accountable recordkeeping and financial control 
and reporting of the property subject to this clause shall be 
retained by the Government. The Contractor shall maintain adequate 
records and procedures to ensure that the Government

[[Page 73207]]

property furnished for servicing can be readily accounted for and 
identified at all times while in its custody or possession or in the 
custody or possession of any subcontractor.
    (c) The Contractor shall be liable for any loss, damage, or 
destruction of the Government property furnished for servicing when 
caused by the Contractor's failure to exercise such care and 
diligence as a reasonable prudent owner of similar property would 
exercise under similar circumstances, or when sustained while the 
property is being worked upon and directly resulting from that work, 
including, but not limited to, any repairing, adjusting, inspecting, 
servicing, or maintenance operation. The Contractor shall not be 
liable for loss, damage, or destruction of Government property 
furnished for servicing resulting from any other cause except to the 
extent that the loss, damage, or destruction is covered by insurance 
(including self-insurance funds or reserves).
    (d) In addition to any insurance (including self-insurance funds 
or reserves) carried by the Contractor and in effect on the date of 
this contract affording protection in whole or in part against loss, 
damage, or destruction of such Government property furnished for 
servicing, the amount and coverage of which the Contractor agrees to 
maintain, the Contractor further agrees to obtain any additional 
insurance covering such loss, damage, or destruction that the 
Contracting Officer may from time to time require. The requirements 
for this additional insurance shall be effected under the procedures 
established by the Changes clause of this contract.
    (e) The Contractor shall hold the Government harmless and shall 
indemnify the Government against all 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 that property on the 
Contractor's premises or property.


(End of clause)


1852.245-73  Financial reporting of NASA property in the custody of 
contractors.

    As prescribed in 1845.106-70(d), insert the following clause:

Financial Reporting of NASA Property In the Custody of Contractors (XX/
XX)

    (a) The Contractor shall submit annually a NASA Form (NF) 1018, 
NASA Property in the Custody of Contractors, in accordance this 
clause, the instructions on the form and NFS subpart 1845.71, and 
any supplemental instructions for the current reporting period 
issued by NASA.
    (b)(1) Subcontractor use of NF 1018 is not required by this 
clause; however, the Contractor shall include data on property in 
the possession of subcontractors in the annual NF 1018.
    (2) The Contractor shall mail the original signed NF 1018 
directly to the cognizant NASA Center Deputy Chief Financial 
Officer, Finance, unless the Contractor uses the NF 1018 Electronic 
Submission System (NESS) for report preparation and submission.
    (3) One copy shall be submitted (through the Department of 
Defense (DOD) Property Administrator if contract administration has 
been delegated to DOD) to the following address: [Insert name and 
address of appropriate NASA Center office.], unless the Contractor 
uses the NF 1018 Electronic Submission System (NESS) for report 
preparation and submission.
    (c)(1) The annual reporting period shall be from October 1 of 
each year through September 30 of the following year. The report 
shall be submitted in time to be received by October 15. The 
information contained in these reports is entered into the NASA 
accounting system to reflect current asset values for agency 
financial statement purposes. Therefore, it is essential that 
required reports be received no later than October 15. Some activity 
may be estimated for the month of September, if necessary, to ensure 
the NF 1018 is received when due. However, contractors' procedures 
must document the process for developing these estimates based on 
planned activity such as planned purchases or NASA Form 533 (NF 533 
Contractor Financial Management Report) cost estimates. It should be 
supported and documented by historical experience or other 
corroborating evidence, and be retained in accordance with FAR 
Subpart 4.7, Contractor Records Retention. Contractors shall 
validate the reasonableness of the estimates and associated 
methodology by comparing them to the actual activity once that data 
is available, and adjust them accordingly. In addition, differences 
between the estimated cost and actual cost must be adjusted during 
the next reporting period. Contractors shall have formal policies 
and procedures, which address the validation of NF 1018 data, 
including data from subcontractors, and the identification and 
timely reporting of errors. The objective of this validation is to 
ensure that information reported is accurate and in compliance with 
the NASA FAR Supplement. If errors are discovered on NF 1018 after 
submission, the contractor shall contact the cognizant NASA Center 
Industrial Property Officer (IPO) within 30 days after discovery of 
the error to discuss corrective action.
    (2) The Contracting Officer may, in NASA's interest, withhold 
payment until a reserve not exceeding $25,000 or 5 percent of the 
amount of the contract, whichever is less, has been set aside, if 
the Contractor fails to submit annual NF 1018 reports in accordance 
with NFS subpart 1845.71 and any supplemental instructions for the 
current reporting period issued by NASA. Such reserve shall be 
withheld until the Contracting Officer has determined that NASA has 
received the required reports. The withholding of any amount or the 
subsequent payment thereof shall not be construed as a waiver of any 
Government right.
    (d) A final report shall be submitted within 30 days after 
disposition of all property subject to reporting when the contract 
performance period is complete in accordance with (b)(1) through (3) 
of this clause.

    (End of clause)


1852.245-74  Identification and marking of Government equipment.

    As prescribed by 1845.107-70(e) insert the following clause.

Identification and Marking of Government Equipment (XX/XX)

    (a) The Contractor shall identify all equipment to be delivered 
to the Government using NASA Technical Handbook (NASA-HDBK) 6003, 
Application of Data Matrix Identification Symbols to Aerospace Parts 
Using Direct Part Marking Methods/Techniques, and NASA Standard 
(NASA-STD) 6002, Applying Data Matrix Identification Symbols on 
Aerospace Parts. This includes deliverable equipment listed in the 
schedule and other equipment when NASA directs physical transfer to 
NASA or a third party. The Contractor shall identify property in 
both machine and human readable form unless the use of a machine 
readable-only format is approved by the NASA Industrial Property 
Officer.
    (b) Property shall be marked in a location that will be human 
readable, without disassembly or movement of the property, when the 
items are placed in service unless such placement would have a 
deleterious effect on safety or on the item's operation.
    (c) Concurrent with equipment delivery or transfer, the 
Contractor shall provide the following data in an electronic 
spreadsheet format:
    (1) Item Description.
    (2) Unique Identification Number (License Tag).
    (3) Unit Price.
    (4) An explanation of the data used to make the unique 
identification number.
    (d) For items physically transferred under paragraph (a) the 
following additional data is required:
    (1) Date originally placed in service.
    (2) Item condition.
    (3) Date last serviced.
    (e) The data required in paragraphs (c) and (d) shall be 
delivered to the NASA center receiving activity listed below:
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

    (f) The contractor shall include the substance of this clause, 
including this paragraph (f), in all subcontracts that require 
delivery of equipment.

    (End of clause)


1852.245-75  Property management changes.

    As prescribed in 1845.107-70(f), insert the following clause.

Property Management Changes (XX/XX)

    (a) The Contractor shall submit any changes to standards and 
practices used for management and control of Government property 
under this contract to the assigned property administrator and 
Industrial Property Officer (IPO), prior to making the change 
whenever the change --
    (1) Employs a standard that allows increase in thresholds or 
changes the timing for reporting loss, damage, or destruction of 
property;

[[Page 73208]]

    (2) Alters physical inventory timing or procedures;
    (3) Alters recordkeeping practices;
    (4) Alters practices for recording the transport or delivery of 
Government property; or
    (5) Alters practices for disposition of Government property.
    (b) The Contractor shall contact the IPO at: (fill in IPO name, 
address, telephone number and e-mail)

    (End of clause)


1852.245-76  List of Government property furnished pursuant to FAR 
52.245-1.

    As prescribed in 1845.107-70(g), insert the following clause:

List of Government Property Furnished Pursuant to FAR 52.245-1 (XX/XX)

    (a) For performance of work under this contract, the Government 
will make available Government property identified below or in 
Attachment [Insert attachment number or ``not applicable''] of this 
contract on a no-charge-for-use basis pursuant to the clause at FAR 
52.245-1, Government Property. The Contractor shall use this 
property in the performance of this contract at [Insert applicable 
site(s) where property will be used] and at other location(s) as may 
be approved by the Contracting Officer. Under FAR 52.245-1, the 
Contractor is accountable for the identified property.

[GRAPHIC] [TIFF OMITTED] TP02DE08.073


(End of clause)


1852.245-77  List of Government property furnished pursuant to FAR 
52.245-2.

    As prescribed in 1845.107-70(h), insert the following clause:

List of Government Property Furnished Pursuant to FAR 52.245-2 (XX/XX)

    For performance of work under this contract, the Government will 
make available Government property identified below or in Attachment 
---- [Insert attachment number or ``not applicable''] of this 
contract on a no-charge-for-use basis pursuant to FAR 52.245-2, 
Government Property Installation Operation Services. The Contractor 
shall use this property in the performance of this contract at ---- 
[Insert applicable site(s) where property will be used] and at other 
location(s) as may be approved by the Contracting Officer.
[GRAPHIC] [TIFF OMITTED] TP02DE08.074

    [Insert a description of the item(s), acquisition date, 
quantity, acquisition cost, and applicable equipment information]


(End of clause)


1852.245-78  Physical inventory of capital personal property.

    As prescribed in 1845.107-70(i), insert the following clause.

Physical Inventory of Capital Personal Property (Deviation) (XX/XX)

    (a) In addition to physical inventory requirements under the 
clause at FAR 52.245-1, Government Property, the Contractor shall 
conduct annual physical inventories for individual property items 
with an acquisition cost exceeding $100,000.
    (1) The Contractor shall inventory--
    (i) Items of property furnished by the Government;
    (ii) Items acquired by the Contractor and titled to the 
Government under the clause at FAR 52.245-1;
    (iii) Items constructed by the Contractor and not included in 
the deliverable, but titled to the Government under the clause at 
FAR 52.245-1; and
    (iv) Complete but undelivered deliverables.
    (2) The Contractor shall use the physical inventory results to 
validate the property record data, specifically location, condition 
and use status, and to prepare summary reports of inventory as 
described in paragraph (c) of this clause.
    (b) Unless specifically authorized in writing by the NASA 
Industrial Property Officer (IPO), the inventory shall be performed 
and posted by individuals other than those assigned custody of the 
items, responsibility for maintenance, or responsibility for posting 
to the property record. The Contractor may request a waiver from 
this separation of duties requirement from the NASA IPO, when all of 
the conditions in either (1) or (2) below are met.
    (1) The Contractor utilizes an electronic system for property 
identification, such as a laser bar-code reader or radio frequency 
identification reader, and

[[Page 73209]]

    (i) The programs or software preclude manual data entry of 
inventory identification data by the individual performing the 
inventory; and
    (ii) The inventory and property management systems contain 
sufficient management controls to prevent tampering and assure 
proper posting of collected inventory data.
    (2) The Contractor has limited quantities of property, limited 
personnel, or limited property systems; and,
    (i) The Contractor provides written confirmation that the 
Government property exists in the recorded condition and location; 
and
    (ii) The items continue to be used exclusively for performance 
of the contract or as otherwise authorized by the Contracting 
Officer.
    (3) The Contractor shall submit the request to the cognizant 
property administrator and obtain approval from the IPO prior to 
implementation of the practice.
    (c) The Contractor shall report the results of the physical 
inventory to the property administrator and the NASA Industrial 
Property Officer within 10 calendar days of completion of the 
physical inventory. The report shall--
    (1) Provide a summary showing number and value of items 
inventoried; and
    (2) Include additional supporting reports of--
    (i) Loss, damage or destruction, in accordance with the clause 
at 52.245-1, Government Property;
    (ii) Idle property available for reuse or disposition; and
    (iii) A summary of adjustments made to location, condition, 
status, or user as a result of the physical inventory 
reconciliation.
    (d) The Contractor shall retain all physical inventory records, 
including records of all transactions associated with inventory 
reconciliation. All records shall be subject to Government review 
and/or audit.


(End of clause)


1852.245-79  Records and disposition reports for Government property 
with potential historic or significant real value.

    As prescribed in 1845.107-70(j), insert the following clause.

Records and Disposition Reports for Government Property with Potential 
Historic or Significant Real Value (XX/XX)

    (a) Items of Government property flown in space or used to 
support other pioneering NASA programs have increased probability of 
historic significance and an intrinsic value that is likely to 
exceed their unused material or physical value. Descriptions of 
physical characteristics alone are often insufficient to determine 
an item's historic significance or real value. In addition to the 
property record data required by the clause at FAR 52.245-1, 
Government Property in this contract, Contractor records of all 
Government property under this contract shall--
    (1) Identify the projects or missions that used the items;
    (2) Specifically identify items of flown property;
    (3) When known, associate individual items of property used in 
space flight operations with the using astronaut(s); and
    (4) Identify property used in test activity and, when known, the 
individuals who conducted the test.
    (b) The Contractor shall include this information within item 
descriptions--
    (1) On any Standard Form 1428, Inventory Schedule;
    (2) In automated disposition systems;
    (3) In any other disposition related reports; and
    (4) In other requests for disposition instructions.
    (c) The Contractor shall not remove NASA identification or 
markings from Government-furnished property prior to disposition 
without the advanced written approval of the NASA Industrial 
Property Officer.


(End of clause)


1852.245-80  Government property management information.

    As prescribed in 1845.107-70(k), insert the following provision.

Government Property Management Information (XX/XX)

    (a) The offeror shall identify the industry leading or voluntary 
consensus standards, and/or the industry leading practices, that it 
intends to employ for the management of Government property under 
any contract awarded from this solicitation.
    (b) The offeror shall provide the date of its last Government 
property control system analysis along with its overall status, a 
summary of findings and recommendations, the status of any 
recommended corrective actions, the name of the Government activity 
that performed the analysis, and the latest available contact 
information for that activity.
    (c) The offeror shall identify any property it intends to use in 
performance of this contract from the list of available Government 
property in the provision at 1852.245-81, List of Available 
Government Property.
    (d) The offeror shall identify all Government property in its 
possession, provided under other Government contracts that it 
intends to use in the performance of this contract. The offeror 
shall also identify: The contract that provided the property, the 
responsible Contracting Officer, the dates during which the property 
will be available for use (including the first, last, and all 
intervening months), and, for any property that will be used 
concurrently in performing two or more contracts, the amounts of the 
respective uses in sufficient detail to support prorating the rent, 
the amount of rent that would otherwise be charged in accordance 
with FAR 52.245-9, Use and Charges, and the contact information for 
the responsible Government Contracting Officer. The offeror shall 
provide proof that such use was authorized by the responsible 
Contracting Officer.
    (e) The offeror shall disclose cost accounting practices that 
allow for direct charging of commercially available equipment, when 
commercially available equipment is to be used in performance of the 
contract and the equipment is not a deliverable.
    (f) The offeror shall identify, in list form, any equipment that 
it intends to acquire and directly charge to the Government under 
this contract. The list shall include a description, manufacturer, 
model number (when available), quantity required, and estimated unit 
cost.
    (g) The offeror shall disclose its intention to acquire any 
parts, supplies, materials or equipment, to fabricate an item of 
equipment for use under any contract resulting from this 
solicitation when that item of equipment: Will be titled to the 
government under the provisions of the contract; is not included as 
a contract deliverable; and the Contractor intends to charge the 
costs of materials directly to the contract. The disclosure shall be 
in list form, parts shall be grouped by and identify the end item or 
system and shall include all descriptive information, manufacturer, 
model, part, catalog or other identification numbers (when 
available), quantities required, and estimated unit costs.
    (h) Existing available Government property listed in the 
provision at 1852.245-81 is provided ``as is''. NASA makes no 
warranty regarding its performance or condition. The offeror uses 
this property at its own risk and should make its own assessment of 
the property's suitability for use. The equitable adjustment 
provisions of the clause at 52.245-1, Government Property, are not 
applicable to this property. The offeror must obtain the Contracting 
Officer's written approval before acquiring replacement property 
when it intends to charge the cost directly to the contract.
    (i) Existing Government property may be reviewed at the 
following locations, dates, and times: [Enter the appropriate 
information]


(End of provision)


18.52.245-81  List of available Government property.

    As prescribed in 1845.107-70(l), insert the following provision.

List of Available Government Property (XX/XX)

    (a) The Government will make the following Government property 
available for use in performance of the contract resulting from this 
solicitation, on a no-charge-for-use basis in accordance with FAR 
52.245-1, Government Property. The offeror shall notify the 
Government, as part of its proposal, of its intention to use or not 
use the property.

[[Page 73210]]

[GRAPHIC] [TIFF OMITTED] TP02DE08.075

    (b) The Government will make the following Government property 
available for use in performance of the contract resulting from this 
solicitation, on a no-charge-for-use basis in accordance with FAR 
52.245-2, Government Property Installation Operation Services. The 
offeror shall notify the Government of its intention to use or not 
use the property.
[GRAPHIC] [TIFF OMITTED] TP02DE08.076

    (c) The selected Contractor will be responsible for costs 
associated with transportation, and installation of the property 
listed in this provision.


(End of provision)


1852.245-82  Occupancy management requirements.

    As prescribed in 1845.106-70(m), insert the following clause:

Occupancy Management Requirements (XX/XX)

    (a) In addition to the requirements of the clause at FAR 52.245-
1, Government Property, the Contractor shall comply with the 
following in performance of work in and around Government real 
property:
    (1) NPD 8800.14, Policy for Real Property Management.
    (2) NPR 8831.2, Facility Maintenance Management [Insert any 
additional Center occupancy requirements here]
    (b) The Contractor shall obtain the written approval of the 
Contracting Officer before installing or removing Contractor-owned 
property onto or into any Government real property or when movement 
of Contractor-owned property may damage or destroy Government-owned 
property. The Contractor shall restore damaged property to its 
original condition at the Contractor's expense.
    (c) The Contractor shall not acquire, construct or install any 
fixed improvement or structural alterations in Government buildings 
or other real property without the advance, written approval of the 
Contracting Officer. Fixed improvement or structural alterations, as 
used herein, means any alteration or improvement in the nature of 
the building or other real property that, after completion, cannot 
be removed without substantial loss of value or damage to the 
premises. Title to such property shall vest in the Government.
    (d) The Contractor shall report any real property or any portion 
thereof when it is no longer required for performance under the 
contract, as directed by the Contracting Officer.


(End of clause)


1852.245-83  Real property management requirements.

    As prescribed in 1845.106-70(n), insert the following clause:

Real Property Management Requirements (XX/XX)

    (a) In addition to the requirements of the FAR Government 
Property Clause (FAR 52,245-1) the Contractor shall comply with the 
following in performance of any maintenance, construction, 
modification, demolition, or management activities of any Government 
real property:
    (1) NPD 8800.14, Policy for Real Property Management.
    (2) NPR 8831.2, Facility Maintenance Management. [Insert any 
real property related Center requirements here]
    (b) Within 30 calendar days following award, the Contractor 
shall provide a plan for maintenance of Government real property 
provided for use under this contract. The Contractor's maintenance 
program shall enable the identification, disclosure, and performance 
of normal and routine preventative maintenance and repair. The 
Contractor shall disclose and report to the Contracting Officer the 
need for replacement and/or capital rehabilitation. Upon acceptance 
by the Contracting Officer, the program shall become a requirement 
under this contract.
    (c) Title to parts replaced by the Contractor in carrying out 
its normal maintenance obligations shall pass to and vest in the 
Government upon completion of their installation in the facilities. 
The Contractor shall keep the property free and clear of all liens 
and encumbrances.
    (d) The Contractor shall keep records of all work done to real 
property, including plans, drawings, charts, warranties, and 
manuals. Records shall be complete and current. Record of all 
transactions shall be auditable. The Government shall have access to 
these records at all reasonable times, for the purposes of 
reviewing, inspecting, and evaluating the Contractor's real property 
management effectiveness. When real property is disposed of under 
this contract, the Contractor shall deliver the related records to 
the Government.
    (e) The Contracting Officer may direct the Contractor in writing 
to reduce the work required by the maintenance program authorized in 
paragraph (b) at any time.


(End of clause)

[FR Doc. E8-28634 Filed 12-1-08; 8:45 am]
BILLING CODE 7510-01-P