[Federal Register Volume 76, Number 8 (Wednesday, January 12, 2011)]
[Rules and Regulations]
[Pages 2001-2011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32741]



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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1845 and 1852

RIN 2700-AD37


Government Property

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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SUMMARY: NASA is issuing a final rule 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 Part 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 14 
June, 2007.

DATES: Effective Date: January 12, 2011.

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 14 June, 
2007. The purpose of this final 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 Subpart 
1852.245, that are consistent with the rewrite of FAR Part 45. This 
rewrite of NFS Part 1845 and Subpart 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 final 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. NASA published a proposed rule at 73 
FR 73202, December 2, 2008. The 60 day comment period for the proposed 
rule ended February 2, 2009. Three respondents provided comments for a 
total of 52 comments.
    The public comments were considered by NASA in the formation of the 
final rule.
    Comment 1: One respondent recommended that language in 1845.107-
70(B)(5) be clarified to differentiate between government property 
acquired which the government has title to and property acquired under 
FAR 52.245-1 Alt 2, which is titled to the contractor.
    Response: Concur. The word ``Government'' was appended to 
``property'' in the language to differentiate between property acquired 
and titled to the contractor under the alternate and property titled to 
the Government.
    Comment 2: One respondent recommended that the phrase ``IPO's 
Center for transfer to the'' be added to 1852.245-70, Alternate I as 
follows: (ii) If the Contractor determines that an item within NASA or 
Federal excess is suitable, it shall contact the Center Industrial 
Property Officer (IPO) to arrange for transfer of the item from the 
identified source to the IPO's Center for transfer to the contractor.
    Response: Non-concur. With the issuance of the final rule, the 
process in Procurement Information Circular 05-07 will become obsolete. 
The process suggested is internal to NASA and would be addressed 
through Part 1845, and not thorough contract language. NASA may choose 
a variety of methods to effect a transfer.
    Comment 3: One respondent recommended establishing a threshold for 
screening greater than $10,000 for items of property proposed for 
acquisition by institutions of higher education and allowing 
institutions to reject items if they are not technically sufficient.
    Response: Non-concur. FAR Part 8 and 40 U.S.C. 524 require 
screening of agency inventory and other agencies' excess prior to new 
acquisitions whenever practicable. Though the screening practice may 
not always be productive, screening activity is not impracticable; 
therefore, we are required to perform it.
    Comment 4: One respondent recommended changing the date for report 
submission at 1852.245-73(c)(1) from October 15 to October 30.
    Response: Non-concur. The October 15 date is needed to allow 
sufficient time for contractor held property values to be compiled into 
NASA's annual financial statement.
    Comment 5: One respondent recommended modifying 1852.245-79(c) to 
change the phrase ``Government-furnished property'' to ``Government 
Property'' to clarify that it applies to both Government-furnished and 
Contractor Acquired Government property.
    Response: Concur. Change made.
    Comment 6: One respondent recommended modifying 1852.245-79(c) to 
change ``approval of the NASA Industrial Property Officer to ``approval 
of the Plant Clearance Officer''.
    Response: Concur. Change made.
    Comment 7: One respondent recommended that the reference to 
``Industrial Property Officer or Property Administrator'' in 1845.501-
70(b) be changed to only reference ``Government Property 
Administrator''.
    Response: Non-concur. Within NASA, the Industrial Property Officer 
is the integral link between the contracting functions and the property 
administration functions and serves as the advisor to the Contracting 
Officer on property related topics. The reference to the Industrial 
Property Officer and Property Administrator will remain.
    Comment 8: One respondent recommended that 1845.501-70(b) be 
changed to reflect that the Contracting Officer makes the final 
determination as to the adequacy of the contractor's proposed property 
management systems, standards and practices based on various inputs, 
including those of the Property Administrator and Industrial Property 
Officer.
    Response: Concur. Language changed accordingly.
    Comment 9: One respondent recommended that the reference to 
``Industrial Property Officer or Property Administrator'' at 1845.501-
70(b)(1) be changed to reference only the Property Administrator.
    Response: Non-concur. NASA contracts may operate under 
circumstances that are unknown to the property administrator or differ 
from those applied by the property administrator's own organization. 
Within NASA, the Industrial Property Officer is the integral link 
between the contracting functions and the property administration 
functions and serves as the advisor to the Contracting Officer on

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property related topics. Original language left intact.
    Comment 10: One respondent recommended that DCMA's PCARSS system be 
used for all NASA contracts.
    Response: Non-concur: NASA does not share all contractors with DOD. 
As a result, NASA may need to disposition property outside of PCARSS. 
Further, NASA, as a separate Federal agency maintains its own disposal 
processes and may choose to use them when it is in the agency's best 
interest.
    Comment 11: One respondent recommended simplification of paragraph 
(a) of 1845.7101-2.
    Response: Paragraph (a) of 1845.7101-2 was not proposed to be 
changed in the proposed rule, and was not published for comment, but 
may be reviewed for change in the future.
    Comment 12: One respondent recommended that 1845-7101-2(c) be 
revised to incorporate a proactive approach to identification and 
correction of property data, though no specific language was provided.
    Response: Non-concur. The NASA proposed changes to this paragraph 
were made only to omit obsolete FAR citations and the paragraph is 
otherwise still applicable. While the CO may take proactive measures to 
develop data for property being transferred, this remains an 
alternative procedure to be used when data is found to be insufficient 
by the contractor.
    Comment 13: One respondent recommended deleting the entire clause 
at 1852.245-70.
    Response: Partially concur. The requirement for screening for 
property for reuse is based on law, and therefore cannot be eliminated. 
In addition, the FAR requires the contracting officer to determine 
whether it is in the best interest for the Government to provide 
property. The scope of the clause was, however, limited to equipment 
requested after award.
    Comment 14: One respondent recommended that we remove the 
requirement for contractors to hold employees liable for LDD&T as 
specified at 1852.245-71(a). Collective bargaining agreements, labor 
relations laws, State and local law may prohibit holding an employee 
liable for LDD&T of Government owned property.
    Response: Partially concur. Although the language was unchanged 
from the previous NFS clause, and the liability requirement was 
ameliorated by the phrase ``as appropriate'', the language will be 
changed to read: ``In accordance with FAR 52.245-1(h)(1) the contractor 
shall be liable for property lost, damaged, destroyed or stolen by the 
contractor or their employees when determined responsible by a NASA 
Property Survey Board, in accordance with the NASA guidance in this 
clause.''
    Comment 15: One respondent recommended that the language at 
1852.245-71(b)(iii) be changed so that it is clear that contractors are 
not required to establish a property record until the property is 
titled to the government.
    Response: Concur. 1852.245-71(b)(iii) is changed to read: ``The 
Contractor shall establish a record for Government titled property as 
required by FAR 52.245-1 and shall maintain that record until 
accountability is accepted by the Government.'' The final sentence of 
the paragraph is deleted.
    Comment 16: One respondent recommended that NASA rewrite the clause 
at 1852.245-72 to utilize DOD condition codes F, J and K in determining 
whether property is ``economically repairable''.
    Response: Non-concur. The economic repair codes suggested by the 
contractor are Department of Defense codes not applicable to NASA. NASA 
utilizes its own criteria to determine whether it is economically 
feasible to repair items.
    Comment 17: One respondent recommended revising the language at 
1852.245-72(c) to make liability for Government property furnished more 
consistent with FAR 52.245-1(h)(i) and commercial practices.
    Response: Concur. The phrase ``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.'' is deleted from the first sentence of 
paragraph (c) of 1852.245-72.
    Comment 18: One respondent recommended deleting paragraph (d) of 
1852.245-72, regarding insurance requirements since in conflict with 
FAR Part 45.
    Response: Concur. Paragraph (d) deleted.
    Comment 19: One respondent recommended deleting the clause at 
1852.245-73.
    Response: Non-concur. The reporting requirements of this clause 
were not added or significantly altered in the proposed rule. NASA 
requires submission of this report to support generation of its 
financial statement and other Government financial management reporting 
requirements. Financial reporting requirements of NASA property in the 
custody of contractors may be revised in the future based on advances 
in electronic accounting and reporting systems, and public comment will 
be solicited.
    Comment 20: One respondent recommended eliminating the UID number 
and Data matrix ID symbols requirements contained in the clause at 
1852.245-74 for research and development contracts with higher 
education, non-profit organizations.
    Response: Partially Concur. NASA requires identification to assure 
that its property is adequately managed and controlled. However, 
language has been added to allow performing entities to propose 
alternate, commercial methods of durable marking that retain the data 
required by the above standards. Such alternate methods may be used if 
approved by the NASA Industrial Property Officer.
    Comment 21: One respondent recommended moving the clause at 
1852.245-74 to 1852.211-XX for consistency with the FAR, and that a 
dollar threshold be established below which marking would not be 
required.
    Response: Partially concur. This is a property specific requirement 
limited to equipment items to be delivered to the Government. While a 
threshold is not acceptable to NASA, material and Special Tooling are 
not included in this requirement, thereby eliminating many low dollar 
items from the requirement.
    Equipment is well defined in FAR. It is not applicable to items 
used by the contractor unless those items are no longer required and 
instructions require delivery to the Government. NASA does wish to 
apply this to equipment produced for delivery to the Government. NASA 
intends that this clause will assist the administration in the 
identification and control of equipment items that qualify for internal 
management recordkeeping and controls on delivery to the agency.
    Comment 22: One respondent recommended that the term ``item'' be 
substituted for the term ``equipment'' throughout the clause at 
1852.245-74.
    Response: Non-concur. The requirements in this clause are intended 
to apply to ``equipment'' as defined in FAR Part 45. The term ``item'' 
could have a much broader meaning, including such things as ``parts'' 
and ``items of material'' NASA does not intend to apply this 
requirement to materials (parts). Rather, it is intended for equipment 
only, hence the terminology used.
    Comment 23: One respondent recommended that NASA utilize DOD's MIL 
STD 130 and related DOD infrastructure as the basis for its 
``Identifications and Markings. * * *'' clause at 1852.245-74.
    Response: Partially concur. NASA has modified the clause language 
to allow the use of commercially produced

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markings when those markings otherwise comply with the data and 
legibility requirements of the NASA standard.
    Comment 24: One respondent recommended that 1852.245-74(c) include 
additional, specific instructions on what needs to be marked and those 
instructions be included in the contract. In addition, the respondent 
commented that the reporting requirements would be in addition to 
standard FAR requirements.
    Response: Non-concur. NASA intends the use of these identification 
requirements only on delivered or transferred equipment. Instructions 
in the clause are sufficient to define its applicability.
    Comment 25: One respondent recommended that the phrase ``For Items 
physically transferred'' in paragraph (d) of 1852.245-74 be clarified.
    Response: Partially concur. Language is changed to clarify by 
adding the phrase, ``equipment no longer required for contract 
performance.'' in paragraphs (a) and (d).
    Comment 26: One respondent recommended deleting the requirement to 
provide item condition at 1852.245-74(d)(2) since condition code is not 
required by the FAR clause at 52.245-1.
    Response: Partially concur. Condition codes are discussed within 
the FAR Property Clause at 52.245-1(j)(3)(iv) and are normally 
ascertained by the contractor at the time the items are no longer 
required for contract performance. Clause language is changed to 
implement condition codes used at time of disposal.
    Comment 27: One respondent recommended deleting the requirement to 
provide ``date last serviced'' at 1852.245-74(d)(3).
    Response: Concur. Requirement is deleted.
    Comment 28: One respondent recommended replacing the term 
``equipment'' in paragraph (f) of 1852.245-74 with the term ``an end 
item'' to standardize terminology throughout rule.
    Response: Non-concur. NASA has standardized terminology on the term 
``equipment''.
    Comment 29: One respondent recommended deleting the clause at 
1852.245-75, stating ``portions are repetitive of the FAR 
requirements.''
    Response: Non-concur. This clause clarifies the term 
``significant'' in the FAR clause at 52.245-1(b)(1) to ensure NASA is 
notified when contractor changes may increase risk to property and 
contract performance.
    Comment 30: One respondent recommended the single point of contact 
referenced in paragraph (a) of 1852.245-75 be the Property 
Administrator.
    Response: Partially concur. While the NASA Industrial Property 
Officer must be advised of significant changes as defined in this 
clause, the Property Administrator will be the single source for 
direction to the contractor regarding the acceptability of proposed 
changes.
    Comment 31: One Respondent suggested that sub paragraphs (a)(1), 
(2), & (3) of the proposed clause at 1852.245-75 were written too 
broadly in an attempt to clarify the phrase ``the Contractor shall 
disclose any significant changes to their property management system'' 
at FAR 52.245-1(b)(1).
    Response: Non-concur. This language provides more specific 
descriptions of what constitutes a ``significant change'' to a 
contractor's property management system as stated in FAR 52.245-1(b). 
The more specific language was written to ensure that NASA is notified 
when contractor changes may increase risk to property and risk to 
contract performance.
    Comment 32: One respondent recommended that since the FAR states 
that any ``significant'' changes be disclosed to the Property 
Administrator (PA), the single point of contact should be PA in 
paragraph (b) the proposed rule at 1852.245-75.
    Response: Partially concur. While the NASA Industrial Property 
Officer must be advised of significant changes as defined in this 
clause, the Property Administrator will be the single source for 
direction to the contractor regarding the acceptability of proposed 
changes.
    Comment 33: One respondent suggested adding language allowing the 
contractor to acquire property identified in their proposal in response 
to the provision at 1852.245-80 without further approval.
    Response: Concur. Such language will be added to the clause at 
1852.245-70.
    Comment 34: One respondent suggested adding the dates for FAR 
clauses referenced in the NASA FAR supplement Clauses.
    Response: Partially concur. Wherever FAR clauses are referenced in 
NASA FAR Supplement (NFS) clauses, the date of the FAR clause will be 
included at least once in the same clause, or the reference may use the 
language ``FAR 52.245-X, as incorporated in this contract''.
    Comment 35: One respondent recommended deleting the clause at 
1852.245-78, Physical Inventory of Capital Personal Property, 
suggesting the clause is overly prescriptive and goes beyond industry 
and other government standards. The respondent further suggested, that 
in accordance with NASA's own accounting rules, property with an 
acquisition value of more than $100,000 would not necessarily be 
considered a capital asset.
    Response: Partially-concur. NASA believes the clause, and the 
specific annual physical inventory requirements required by the clause 
for high value items, are necessary to ensure the existence and 
completeness of inventory records associated with such items that may 
be included in NASA's financial statements as capital assets. The 
$100,000 threshold was chosen since it matches one of the base criteria 
used to determine an item as a capital asset. Since as the respondent 
suggests, contractors shouldn't and couldn't determine which items 
greater than $100,000 were considered NASA Capital assets, the dollar 
threshold alone is used as a demarcation for ease of use by the 
contractor. Further, ASTM Standards allow for stratified inventories, 
as high value items may require more visibility than low value items.
    Comment 36: One respondent recommended removing the requirement at 
1852.245-78(a)(2) to use inventory results to validate the ``condition 
and use status'' in property record data, since inventory personnel 
rarely have the skill to determine condition of property and condition 
is generally determined at time of disposition.
    Response: Partially concur. The requirement to validate 
``condition'' and use are removed, however, the requirement to verify 
the existence of the items and the completeness of the records were 
restated.
    Comment 37: One respondent suggested that the FAR deleted the 
requirement for ``separation of duties'' (inventory to be performed by 
individuals other than those assigned custody, or responsibility for 
maintenance or posting); likewise, NASA should delete the requirement 
for ``separation of duties'' at 1852.245-78(b).
    Response: Non-concur. ASTM Standards and GAO Best Practices 
recommend separation of duties either physically or by technologic 
means. This rule allows for either.
    Comment 38: One respondent recommended deleting the prohibition for 
manual entry of data at 1852.245-78(b)(1) when an electronic property 
identification systems is utilized.
    Response: Non-concur. Allowing manual entry of critical data would 
permit tampering with existence and

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completeness records and would negate the ``separation of duties'' 
benefit derived from software controls.
    Comment 39: One Respondent recommended deleting the condition at 
1852.245-78(b)(2)(ii) since it wasn't relevant to physical inventory.
    Response: Concur. Deleted.
    Comment 40: One Respondent recommended deleting the requirement at 
1852.245-78(b)(3) for the contractor to obtain approval for waivers 
from the NASA IPO, and substituting approval from the Property 
Administrator.
    Response: Concur. Waivers will be required to be submitted to and 
approved by the Property Administrator. NASA will accomplish desired 
IPO notification and concurrence requirements through delegation 
instructions to the Property administrator.
    Comment 41: One respondent suggested that the requirement at 
1852.245-78(c) to deliver the physical inventory report within 10-
calendar days of completion of the physical inventory was not 
sufficient time considering time needed for reconciliation.
    Response: Non-concur. 10 calendar days is sufficient time. NASA 
considers the reconciliation process to be included as part of the 
physical inventory process.
    Comment 42: One respondent recommended that the requirement at 
1852.245-78(c) to report the results of the physical inventory to the 
NASA IPO be changed to the Property Administrator.
    Response: Concur. Language changed.
    Comment 43: One Respondent recommended standardizing the ``loss, 
damage or destruction * * *'' language at 1852.245-71(c)(2)(i) with the 
FAR language in 52,245-1.
    Response: Concur. Language changed to ``Loss, damage, destruction 
or theft * * *''
    Comment 44: One respondent recommended changing the requirement at 
1852.245-78(d) for the Contractor to retain ``all physical inventory 
records'' to ``pertinent physical inventory records''.
    Response: Partially-concur. Language changed to require the 
Contractor to ``retain auditable physical inventory records''.
    Comment 45: One respondent recommended deleting the clause at 
1852.245-79, Records and Disposition Reports for Government Property 
with Potential Historic or Significant Real Value.
    Response: Non-concur. NASA believes this clause is necessary to 
ensure there are complete records for high value or historic value 
items.
    Comment 46: One respondent suggested that the first two sentences 
of paragraph (a) of the clause at 1852.245-79 were ``commentary'' in 
nature and should be deleted.
    Response: Concur. Sentences delete.
    Comment 47: One respondent recommended changing the requirement for 
the Contractor to obtain approval from the NASA IPO to approval from 
the Property Administrator at 1852.245-79(c).
    Response: Concur. Approval requirement changed from NASA IPO to 
Property administrator.
    Comment 48: One respondent suggested that the provision at 
1852.245-80, Government Property Management Information, was a 
duplicate of requirements in FAR Part 45.
    Response: Noted. This provision implements requirements in FAR Part 
45 by providing specific language for NASA Contracting Officers to 
include in NASA Solicitations.
    Comment 49: One respondent recommended deleting paragraph (e) of 
the provision at 1852.245-80, since contractors must otherwise comply 
with CAS 402 which defines direct costs.
    Response: Partially-concur. NASA agrees that compliance with CAS 
and the contractor's disclosure statement will determine how a 
particular cost can be allocated. The provision only requires the 
contractor to disclose in the proposal any such accounting practices.
    Comment 50: One respondent recommended limiting the scope of 
paragraph (g) of 1852.245-80 to items valued over $100,000, and 
eliminating the requirement for detailed information on the items.
    Response: Partially-concur. Items below $100,000 will still be 
required to be listed; however, detail will be limited to a description 
of the intended end item and its estimated value.
    Comment 51: One respondent recommended changing the prescription at 
1852.245-81 from ``insert the following provision'' to ``insert the 
following clause''.
    Response: Non-concur. The Prescription references a solicitation 
provision.
    Comment 52: One respondent recommended inserting the date for the 
FAR clause referenced at 1852.245-81(b).
    Response: Concur. Date inserted.
    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 final 
rule is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    NASA certifies that this final 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 Parts 45 and 52.245 
set forth in FAC 2005-17, and does not impose an 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.

0
Accordingly, 48 CFR parts 1845 and 1852 are amended as follows:
0
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

0
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

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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 nocharge 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 Government 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 e 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. In addition, the 
contracting officer shall insert the following language in the blanks 
in paragraph (e) of the clause at 52.245-2:
    ``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 Historic Preservation Officer, 
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)(1) 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.
    (2) The contracting officer shall use the provision with Alternate 
1 when there are sufficient time and resources to allow prospective 
contractors the opportunity to inspect the property.
    (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.

0
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.

Subpart 1845.4--[Removed and Reserved]

0
4. Subpart 1845.4 is removed and reserved.

0
5. Subpart 1845.5 is revised to read as follows:
Subpart 1845.5--Support Government Property Administration
Sec.
1845.501-70 General.
1845.503-70 Delegations of property administration and plant 
clearance.

[[Page 2006]]

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 should: (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
    (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

0
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.

Subpart 1845.7101--Forms Preparation

0
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.
* * * * *


1845.7102   [Removed]

0
8. Section 1845.7102 is removed.

Subpart 1845.72--[Removed]

0
9. Subpart 1845.72 is removed.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
10. 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
* * * * *
Sec.
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.
* * * * *

[[Page 2007]]

Subpart 1852.2--Text of Provisions and Clauses

* * * * *


1852.245-70   Contractor Requests for Government-Provided Equipment.

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

CONTRACTOR REQUESTS FOR GOVERNMENT-PROVIDED EQUIPMENT (JAN 2011)

    (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. Property approved as part of the contract award or 
specifically required within the statement of work 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 FAR 52.245-1, 
Government Property, as incorporated in this contract.


(End of Clause)

ALTERNATE I (JAN 2011)

    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 (JAN 2011)

    (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 the clause at FAR 52.245-1, 
as incorporated in this contract.
    The Contractor shall establish and adhere to a system of written 
procedures to assure continued, effective management control and 
compliance with these user responsibilities. In accordance with FAR 
52.245-1(h)(1) the contractor shall be liable for property lost, 
damaged, destroyed or stolen by the contractor or their employees 
when determined responsible by a NASA Property Survey Board, in 
accordance with the NASA guidance in this clause.
    (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 for Government 
titled property as required by FAR 52.245-1, as incorporated in this 
contract, and shall maintain that record until accountability is 
accepted by the Government.
    (iv) Contractor use of Government property at an off-site 
location and off-site subcontractor use requires 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 (as incorporated 
in this contract), 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.

[[Page 2008]]

    (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 (JAN 2011)

    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 (JAN 2011)

    (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 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. 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) 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.

0
As prescribed in 1845.106-70(d), insert the following clause:

FINANCIAL REPORTING OF NASA PROPERTY IN THE CUSTODY OF CONTRACTORS (JAN 
2011)

    (a) The Contractor shall submit annually a NASA Form (NF) 1018, 
NASA Property in the Custody of Contractors, in accordance with 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 paragraph (b)(1) 
through (3) of this clause.

(End of clause)


1852.245-74  Identification and Marking of Government Equipment.

0
As prescribed by 1845.107-70(e), insert the following clause.

IDENTIFICATION AND MARKING OF GOVERNMENT EQUIPMENT (JAN 2011)

    (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 or through the use of commercial marking techniques 
that: (1) are sufficiently durable to remain intact through the 
typical lifespan of the property: and, (2) contain the data and data 
format required by the standards. This requirement includes 
deliverable equipment listed in the schedule and other equipment 
when no longer required for contract performance and 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.

[[Page 2009]]

    (b) Equipment shall be marked in a location that will be human 
readable, without disassembly or movement of the equipment, 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 equipment no longer needed for contract performance and 
physically transferred under paragraph (a) of this clause, the 
following additional data is required:
    (1) Date originally placed in service.
    (2) Item condition.
    (e) The data required in paragraphs (c) and (d) of this clause 
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.

0
As prescribed in 1845.107-70(f), insert the following clause.

PROPERTY MANAGEMENT CHANGES (JAN 2011)

    (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 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;
    (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.

(End of clause)


1852.245-76  List of Government Property Furnished Pursuant to FAR 
52.245-1.

0
As prescribed in 1845.107-70(g), insert the following clause:

LIST OF GOVERNMENT PROPERTY FURNISHED PURSUANT TO FAR 52.245-1 (JAN 
2011)

    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, as incorporated in this contract. 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.

(End of clause)


1852.245-77  List of Government Property Furnished Pursuant to FAR 
52.245-2.

0
As prescribed in 1845.107-70(h), insert the following clause:

LIST OF GOVERNMENT PROPERTY FURNISHED PURSUANT TO FAR 52.245-2 (JAN 
2011)

    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 nocharge-for-use basis pursuant to FAR 52.245-2, 
Government Property Installation Operation Services, as incorporated 
in this contract. 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.
    [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.

0
As prescribed in 1845.107-70(i), insert the following clause.

PHYSICAL INVENTORY OF CAPITAL PERSONAL PROPERTY (JAN 2011)

    (a) In addition to physical inventory requirements under the 
clause at FAR 52.245-1, Government Property, as incorporated in this 
contract, 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 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 Property 
Administrator, 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 Property Administrator, 
when all of the conditions in either (1) or (2) of this paragraph 
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
    (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 the Contractor provides 
written confirmation that the Government property exists in the 
recorded condition and location;
    (3) The Contractor shall submit the request to the cognizant 
property administrator and obtain approval from the property 
administrator prior to implementation of the practice.
    (c) The Contractor shall report the results of the physical 
inventory to the property administrator 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 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 auditable physical inventory 
records, including records supporting 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.

0
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 (JAN 2011)

    (a) In addition to the property record data required by the 
clause at FAR 52.245-1, Government Property as incorporated in this 
contract, Contractor records of all Government property under this 
contract shall--
    (1) Identify the projects or missions that used the items;

[[Page 2010]]

    (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 0conducted 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 property prior to or during disposition 
without the advanced written approval of the Plant Clearance 
Officer.

(End of clause)


1852.245-80  Government Property Management Information.

0
As prescribed in 1845.107-70(k)(1), insert the following provision.

GOVERNMENT PROPERTY MANAGEMENT INFORMATION (JAN 2011)

    (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 (June 2007), 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. Equipment approved as part of the award need not be requested 
under NFS clause 1852.245-70,
    (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 identify the end item or system and 
shall include all descriptive information, identification numbers 
(when available), quantities required and estimated costs.
    (h) Existing Government property may be reviewed at the 
following locations, dates, and times: [Enter the appropriate 
information]

(End of provision)

ALTERNATE 1 (JAN 2011)

    As prescribed in 1845.107-70(k)(2) add the following paragraph 
(i).
    (i) 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 as 
included in this solicitation, 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.


18.52.245-81  List of Available Government Property.

0
As prescribed in 1845.107-70(l), insert the following provision.

LIST OF AVAILABLE GOVERNMENT PROPERTY (JAN 2011)

    (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, included in this solicitation. The 
offeror shall notify the Government, as part of its proposal, of its 
intention to use or not use the property.
    (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, as 
included in this solicitation. The offeror shall notify the 
Government of its intention to use or not use the property.
    (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.

0
As prescribed in 1845.106-70(m), insert the following clause:

OCCUPANY MANAGEMENT REQUIREMENTS (JAN 2011)

    (a) In addition to the requirements of the clause at FAR 52.245-
1, Government Property, as included in this contract, 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.

0
As prescribed in 1845.106-70(n), insert the following clause:

REAL PROPERTY MANAGEMENT REQUIREMENTS (JAN 2011)

    (a) In addition to the requirements of the FAR Government 
Property Clause incorporated in this contract (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.

[[Page 2011]]

    (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) of this clause at any time.

(End of clause)

[FR Doc. 2010-32741 Filed 1-11-11; 8:45 am]
BILLING CODE 7510-01-P