Defense Federal Acquisition Regulation Supplement; Government Property (DFARS Case 2009-D008), 75444-75448 [2010-30285]
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75444
Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Proposed Rules
asked by some clients to prepare and file
their individual income tax returns for
compensation, but A expects that the number
of people who do ask him to provide this
service will be no more than seven in 2012.
In fact, A actually prepares and files six
paper Form 1040 (U.S. Individual Income
Tax Return) returns in 2012. Due to a
growing client base, and based upon his
experience in 2012, A expects that the
number of individual income tax returns he
will prepare and file in 2013 will at least
double, estimating he will prepare and file 12
Form 1040 returns in 2013. A does not
qualify as a specified tax return preparer for
2012 because A reasonably expects to file 10
or fewer (seven) in 2012. Consequently, A is
not required to electronically file the
individual income tax returns he prepares
and files in 2012. He does not qualify as a
specified tax return preparer for that year
because A reasonably expects to file 10 or
fewer returns (seven) in 2012. A’s
expectation is reasonable based on his
business projections, individual income tax
return filing history, and staffing decisions. A
is a specified tax return preparer in 2013,
however, because based on those same
factors A reasonably expects to file more than
10 individual income tax returns (12) during
that calendar year. A, therefore, must
electronically file all individual income tax
returns that A prepares and files in 2013 that
are not otherwise excluded from the
electronic filing requirement.
Example 2. Same facts as in Example 1,
except three of Tax Return Preparer A’s
clients specifically chose to have A prepare
their individual income tax returns in paper
format in 2012 with the clients mailing their
respective returns to the IRS. A expects that
these three clients will similarly choose to
have him prepare their returns in paper
format in 2013, with the clients being
responsible for mailing their returns to the
IRS. A is not required to electronically file
these three returns in 2013 because the
taxpayers chose to file their returns in paper
format, and A obtained a dated written
statement from each of those taxpayers,
indicating that they chose to file their returns
in paper format. These three individual
income tax returns are not counted in
determining how many individual income
tax returns A reasonably expects to file in
2013. Because the total number of individual
income tax returns A reasonably expects to
file in 2013 (nine) does not exceed 10, A is
not a specified tax return preparer for
calendar year 2013, and A is not required to
electronically file any individual income tax
return that he prepares and files in 2013.
Example 3. Tax Return Preparer B is a solo
general practice attorney in a small county.
Her practice includes the preparation of wills
and assisting executors in administering
estates. As part of her practice, B infrequently
prepares and files Forms 1041 (U.S. Income
Tax Return for Estates and Trusts) for
executors. In the past three years, she
prepared and filed an average of five Forms
1041 each year and never exceeded more
than seven Forms 1041 in any year. Based on
B’s prior experience and her estimate for
2012, made prior to the time she first files an
individual income tax return in 2012, she
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reasonably expects to prepare and file no
more than five Forms 1041 in 2012. Due to
the unforeseen deaths of several of her clients
in late 2011, B actually prepares and files 12
Forms 1041 in 2012. B does not find out
about these deaths until after she has already
filed the first Form 1041 in 2012 for another
client. B is not required to electronically file
these returns in 2012. She does not qualify
as a specified tax return preparer for calendar
year 2012 because prior to the time she filed
the first Form 1041 in 2012, she reasonably
expected to file 10 or fewer individual
income tax returns in 2012.
Example 4. Same facts as Example 3,
except, in addition to the five Forms 1041
that she expects to prepare and file in 2012,
Tax Return Preparer B also expects to prepare
and file 10 paper Forms 1040 (U.S.
Individual Income Tax Return) in 2012,
based upon the requests that she has received
from some of her clients. Because the total
number of individual income tax returns B
reasonably expects to file in 2012 (fifteen)
exceeds 10, B is a specified tax return
preparer for calendar year 2012, and B must
electronically file all individual income tax
returns that B prepares and files in 2012 that
are not otherwise excluded from the
electronic filing requirement.
Example 5. Firm X consists of two tax
return preparers, Tax Return Preparer C who
owns Firm X, and Tax Return Preparer D
who is employed by C in Firm X. Based upon
the firm’s experience over the past three
years, C and D reasonably expect to file nine
and ten individual income tax returns for
compensation, respectively, in 2012. Both C
and D must electronically file the individual
income tax returns that they prepare in 2012,
unless the returns are otherwise excluded
from the electronic filing requirement,
because they are members of the same firm
and the aggregated total of individual income
tax returns that they reasonably expect to file
in 2012 (nineteen), exceeds 10 individual
income tax returns.
(f) Additional guidance. The IRS may
implement the requirements of this
section through additional guidance,
including by revenue procedures,
notices, publications, forms and
instructions, including those issued
electronically.
(g) Proposed effective/applicability
dates. This section is proposed to be
effective and applicable on January 1,
2011.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2010–30500 Filed 12–1–10; 4:15 pm]
BILLING CODE 4830–01–P
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 201, 245, and 252
RIN Number 0750–AG38
Defense Federal Acquisition
Regulation Supplement; Government
Property (DFARS Case 2009–D008)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule with request for
comments.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
revise DFARS part 245, Government
Property, to reflect the recent revisions
to FAR part 45, Government Property.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before
February 1, 2011, to be considered in
the formation of the final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2009–D008,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov.
Submit comments via the Internet.
Follow the instructions provided at the
‘‘Submit a Comment’’ screen. Please
include ‘‘DFARS Case 2009–D008’’.
Æ E-mail: dfars@osd.mil. Include
DFARS Case 2009–D008 in the subject
line of the message.
Æ Fax: 703–602–0350.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Mary
Overstreet, OUSD(AT&L) DPAP/DARS,
Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060. Please cite
DFARS Case 2009–D008.
Comments received generally will be
posted without change, including any
personal information provided. Please
check https://www.regulations.gov
approximately two to three days after
electronic submission to verify
posting—allow 30 days for posting of
comments submitted by mail.
FOR FURTHER INFORMATION CONTACT: Ms.
Mary Overstreet, 703–602–0311.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
This rule proposes to update and
reorganize DFARS subparts 245.6 and
245.7 for consistency with FAR changes
published at 72 FR 27364 on May 15,
2007, that address management of
Government property in the possession
of contractors, as well as the related
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DFARS changes published at 74 FR
37645 on July 29, under DFARS Case
2007–D020. Minor related changes are
proposed in part 201 and subparts 245.1
and 245.5. The rule also proposes to add
a new property disposal clause at
75445
252.245–70XX, Reporting, Reutilization,
and Disposal. The following table
summarizes the proposed rule revisions.
DFARS Citation
Changes made by this rule
201.670 ......................
245.107–70 ................
245.5 ..........................
245.570 ......................
245.6 ..........................
245.601 ......................
245.602 ......................
245.602–1 ..................
245.602–3 ..................
245.602–70 ................
245.603 ......................
245.603–70 ................
245.603–71 ................
245.604 ......................
Updated and relocated from 245.70.
Redesignated as 245.107 and added reference to DFARS clause 252.245–70XX.
Added subpart to address support of Government property administration.
Updated and relocated from 245.612.
Renamed subpart as Reporting, Reutilization and Disposal.
Deleted section and relocated updated definitions under DFARS clause 252.245–70XX.
Added section to address reutilization of Government property.
Added subsection, updated, and relocated from 245.606–3 and 245.7201.
Added subsection, updated, and relocated from 245.608–1 and 245.608–2.
Added subsection to address plant clearance procedures.
Deleted section heading.
Deleted subsection.
Deleted subsection. Updated and relocated requirements under DFARS clause 252.245–70XX.
Updated and relocated policy under DFARS clause 252.245–70XX. Renamed section as ‘‘Disposal of surplus property’’
to conform to FAR.
Updated and relocated from 245.73.
Deleted section.
Deleted subsection. Updated and relocated to 245.602–1.
Deleted subsection. Updated and relocated under DFARS clause 252.245–70XX.
Deleted subsection.
Deleted section heading.
Deleted subsection. Updated and relocated subsection under DFARS clause 252.245–70XX.
Deleted subsection.
Deleted subsection. Updated and relocated subsection under DFARS clause 252.245–70XX.
Deleted section heading.
Deleted subsection. Updated and relocated to 245.602–3.
Deleted subsection. Updated and relocated to 245.602–3.
Deleted subsection.
Deleted subsection.
Deleted subsection.
Deleted subsection.
Deleted subsection.
Deleted section.
Deleted section. Updated and relocated under DFARS clause 252.245–70XX.
Deleted section. Updated and relocated in 245.570.
Deleted section.
Deleted subpart. Updated and relocated to 201.670.
Deleted subpart. Updated and relocated to 245.70.
Deleted subpart. Updated and relocated to 245.602–1 and DFARS Procedures, Guidance, and Information.
Deleted subpart. Updated and relocated to 245.604–3.
Added reference to 245.107.
Added clause.
245.604–3 ..................
245.606 ......................
245.606–3 ..................
245.606–5 ..................
245.606–70 ................
245.607 ......................
245.607–1 ..................
245.607–2 ..................
245.607–70 ................
245.608 ......................
245.608–1 ..................
245.608–2 ..................
245.608–5 ..................
245.608–7 ..................
245.608–70 ................
245.608–71 ................
245.608–72 ................
245.609 ......................
245.610 ......................
245.612 ......................
245.613 ......................
245.70 ........................
245.71 ........................
245.72 ........................
245.73 ........................
252.245–7000 ............
252.245–70XX ...........
II. Executive Order 12866
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
is not a major rule under 5 U.S.C. 804.
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III. Regulatory Flexibility Act
DoD does not expect this proposed
rule to have a significant economic
impact on a substantial number of small
entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., because the proposed rule
imposes no new requirements on small
businesses. It makes no significant
change to DoD policy regarding the
management of Government property in
the possession of contractors. Therefore,
DoD has not performed an initial
regulatory flexibility analysis. DoD
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invites comments from small businesses
and other interested parties on the
expected impact of this rule on small
entities.
DoD also will consider comments
from small entities concerning the
affected DFARS subparts in accordance
with 5 U.S.C. 610. Such comments
should be submitted separately and
should cite DFARS Case 2009–D008.
IV. Paperwork Reduction Act
The information collection
requirements of the Defense Federal
Acquisition Regulation Supplement
(DFARS) part 245, Government
Property, related clauses in DFARS part
252, and related forms in DFARS part
253, have been approved by the Office
of Management and Budget (OMB)
under OMB Control Number 0704–0246.
No new information collection
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requirements are imposed by this
proposed rule.
List of Subjects in 48 CFR Parts 201,
245, and 252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Therefore, DoD proposes to amend 48
CFR parts 201, 245, and 252 as follows:
1. The authority citation for 48 CFR
parts 201, 245, and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
PART 201—FEDERAL ACQUISITION
REGULATIONS SYSTEM
2. Add section 201.670 to read as
follows:
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201.670 Appointment of property
administrators and plant clearance officers.
(a) The head of a contracting activity
shall appoint or terminate (in writing)
property administrators and plant
clearance officers.
(b) In appointing qualified property
administrators and plant clearance
officers, the appointment authority shall
consider experience, training,
education, business acumen, judgment,
character, and ethics.
PART 245—GOVERNMENT PROPERTY
245.107–70
[Redesignated as 245.107]
3. Redesignate section 245.107–70 as
245.107 and revise to read as follows:
245.107
Contract clauses.
(a) Use the clause at 252.245–7000,
Government-Furnished Mapping,
Charting, and Geodesy Property, in
solicitations and contracts when
mapping, charting, and geodesy
property is to be furnished.
(b) Use the clause at 252.245–70XX,
Reporting, Reutilization and Disposal,
in solicitations and contracts that
contain the clause at—
(1) FAR 52.245–1, Government
Property; or
(2) FAR 52.245–2, Government
Property Installation Operation
Services.
4. Add subpart 245.5 to read as
follows:
245.602–3
Subpart 245.5—Support Government
Property Administration
245.570 Storage at the Government’s
expense.
All storage contracts or agreements
shall be separately priced and shall
include all costs associated with the
storage.
5. Revise subpart 245.6 to read as
follows:
245.602–70
245.604
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Sec.
245.602 Reutilization of Government
property.
245.602–1 Inventory disposal schedules.
245.602–3 Screening.
245.602–70 Plant clearance procedures.
245.604 Disposal of surplus property.
245.604–3 Sale of surplus property.
245.602 Reutilization of Government
property.
Inventory disposal schedules.
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Disposal of surplus property.
245.604–3
Subpart 245.6—Reporting,
Reutilization, and Disposal
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Plant clearance procedures.
Follow the procedures at PGI
245.602–70 for establishing and
processing a plant clearance case.
Subpart 245.6—Reporting,
Reutilization, and Disposal
Plant clearance officers shall verify
inventory schedules to determine the
following:
Screening.
Property will be screened DoD-wide,
including the contracting agency,
requiring agency and, as appropriate,
the General Services Administration.
The requiring agency shall have priority
for retention of listed items. All required
screening must be completed before any
surplus contractor inventory sale can
take place. The plant clearance officer
shall arrange for inspection of property
at the contractor’s plant if requested by
a prospective transferee, in such a
manner as to avoid interruption of the
contractor’s operations.
Sec.
245.602–1
(1) Allocability.
(i) Review contract requirements,
delivery schedules, bills of material, and
other pertinent documents to determine
whether schedules include property
that—
(A) Is appropriate for use on the
contract; or
(B) Exceeds the quantity required for
completion of the contract, but could be
diverted to other commercial work or
Government use.
(ii) Review the contractor’s—
(A) Recent purchases of similar
material;
(B) Plans for current and scheduled
production;
(C) Stock record entries; and
(D) Bills of material for similar items.
(2) Quantity. While a complete
physical count of each item may not be
required, take adequate measures to
provide reasonable assurance that
available inventory is in accordance
with quantities listed on the inventory
schedules.
(3) Condition. Ensure the inventory
condition matches that shown on the
inventory schedules.
Sale of surplus property.
Plant clearance officers shall use the
following procedures for the sale of
surplus property:
(1) Informal bid procedures. The plant
clearance officer may direct the
contractor to issue informal invitations
for bid (orally, telephonically, or by
other informal media), provided—
(i) Maximum practical competition is
maintained;
(ii) Sources solicited are recorded;
and
(iii) Informal bids are confirmed in
writing.
(2) Sale approval and award.
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(i) Evaluate bids to establish that the
sale price is fair and reasonable, taking
into consideration—
(A) Knowledge or tests of the market;
(B) Current published prices for the
property;
(C) The nature, condition, quantity,
and location of the property; and
(D) Past sale history for like or similar
items.
(ii) Approve award to the responsible
bidder whose bid is most advantageous
to the Government. The plant clearance
officer shall not approve award to any
bidder who is not eligible to enter into
a contract with DoD due to inclusion on
the Excluded Parties List System. If a
compelling reason exists to award to a
bidder on the excluded list, the plant
clearance officer shall request approval
from the contracting officer.
(iii) Notify the contractor of the bidder
to whom an award will be made within
five working days from receipt of bids.
(3) Noncompetitive sales.
(i) Noncompetitive sales include
purchases or retention at less than cost
by the contractor. Noncompetitive sales
may be made when—
(A) The contracting department/
agency or the plant clearance officer
determines that this method is essential
to expeditious plant clearance; and
(B) The Government’s interests are
adequately protected.
(ii) Noncompetitive sales shall be at
fair and reasonable prices, not less than
those reasonably expected under
competitive sales.
(iii) Conditions justifying noncompetitive sales are—
(A) No acceptable bids are received
under competitive sale;
(B) Anticipated proceeds do not
warrant competitive sale;
(C) Specialized nature of the property
would not create bidder interest;
(D) Removal of the property would
reduce its value or result in
disproportionate handling expenses; or
(E) Such action is essential to the
Government’s interests.
Subpart 245.70—[Removed]
6. Subpart 245.70 is removed.
7. Redesignate subpart 245.71 as
245.70, and revise to read as follows:
Subpart 245.70—Plant Clearance
Forms
Sec.
245.7001 Forms.
245.7001–1 Standard Form 97, Certificate of
Release of a Motor Vehicle (Agency
Record Copy).
245.7001–2 DD Form 1149, Requisition and
Invoice Shipping Document.
245.7001–3 DD Form 1348–1, DoD Single
Line Item Release/Receipt Document.
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245.7001–4 DD Form 1640, Request for
Plant Clearance.
245.7001–5 DD Form 1641, Disposal
Determination/Approval.
245.7001–6 Defense Logistics Agency Form
1822, End Use Certificate.
Subpart 245.70—Plant Clearance
Forms
245.7001
Forms.
Use the forms listed below in
performance of plant clearance actions.
245.7001–1 Standard Form 97, Certificate
of Release of a Motor Vehicle (Agency
Record Copy).
Use for transfers, donations, and sales
of motor vehicles. The contracting
officer shall execute the SF 97 and
furnish it to the purchaser.
245.7001–2 DD Form 1149, Requisition
and Invoice Shipping Document.
Use for transfer and donation of
contractor inventory.
245.7001–3 DD Form 1348–1, DoD Single
Line Item Release/Receip Document.
Use when authorized by the plant
clearance officer.
245.7001–4 DD Form 1640, Request for
Plant Clearance.
Use to request plant clearance
assistance or transfer plant clearance.
245.7001–5 DD Form 1641, Disposal
Determination/Approval.
Use to record rationale for the
following disposal determinations:
(a) Downgrade useable property to
scrap.
(b) Abandonment or destruction.
(c) Noncompetitive sale of surplus
property.
245.7001–6 Defense Logistics Agency
Form 1822, End Use Certificate.
Use when directed by the plant
clearance officer.
Subpart 245.72—[Removed]
8. Subpart 245.72 is removed.
Subpart 245.73—[Removed]
9. Subpart 245.73 is removed.
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PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
10. Revise the introductory text of
section 252.245–7000 to read as follows:
252.245–7000 Government-Furnished
Mapping, Charting, and Geodesy Property.
As prescribed in 245.107(a), use the
following clause:
*
*
*
*
*
11. Add section 252.245–70XX to read
as follows:
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252.245–70XX
Disposal.
Reporting, Reutilization and
As prescribed in 245.107(b), use the
following clause:
REPORTING, REUTILIZATION AND
DISPOSAL (DATE)
(a) Definitions. As used in this clause—
(1) Commerce Control List Item (CCLI)
means commodities and associated technical
data (including software) subject to export
controls by the Department of Commerce. (14
CFR 772)
(2) Demilitarization means the act of
eliminating the functional capabilities and
inherent military design features from DoD
personal property. Methods and degree range
from removal and destruction of critical
features to total destruction by cutting,
tearing, crushing, mangling, shredding,
melting, burning, etc.
(3) Munitions List Items (MLI) means
commodities and associated technical data
(including software) contained in the U.S.
Munitions List (USML) that are subject to
export controls by the Department of State.
(22 CFR 121)
(4) Scrap means property that has no value
except for its basic material content. For
purposes of demilitarization, scrap is defined
as recyclable waste and discarded materials
derived from items that have been rendered
useless beyond repair, rehabilitation, or
restoration such that the item’s original
identity, utility, form, fit and function have
been destroyed. Items can be classified as
scrap if processed by cutting, tearing,
crushing, mangling, shredding, or melting.
Intact or recognizable MLI or CCLI
components, and parts are not ‘‘scrap.’’
(5) Serviceable or usable property means
property with potential for reutilization or
sale ‘‘as is’’ or with minor repairs or
alterations; in Federal Condition Codes: A1,
A2, A4, A5, B1, and B4.
(b) Inventory disposal schedules.
(1) The Contractor shall complete SF 1428,
Inventory Schedule B, within the Plant
Clearance Automated Reutilization Screening
System (PCARSS). Information on PCARSS
can be obtained from the plant clearance
officer and at https://www.dcma.mil/ITCSO/
CBT/PCARSS/index.cfm. Instructions for
completing the form are provided on the
reverse side of the form.
(i) SF 1428 shall contain the following
supply condition codes together with
disposal codes 1 through 9, X, and S (e.g.,
A1, F7, SS):
(A) A—New, used, repaired, or
reconditioned property; serviceable and
issuable to all customers without limitations
or restrictions; includes material with
remaining shelf life of more than six months.
(B) B—New, used, repaired, or
reconditioned property; serviceable and
issuable or for its intended purpose but
restricted from issue to specific units,
activities, or geographical areas because of its
limited usefulness or short service-life
expectancy; includes material and remaining
shelf life of three to six months.
(C) F—Economically reparable property
which requires repair, overhaul or
reconditioning; includes reparable items
which are radioactively contaminated.
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(D) H—Property which has been
determined to be unserviceable and does not
meet repair criteria.
(E) S—Property that has no value except
for its basic material content.
(ii) The item description on the SF 1428
shall contain the following:
(A) The applicable Federal Supply Code
(FSC) for all items, except items in scrap
condition.
(B) The manufacturer name for all aircraft
components under Federal Supply Group
(FSG) 16 or 17 and FSCs 2620, 2810, 2915,
2925, 2935, 2945, 2995, 4920, 5821, 5826,
5841, 6340, and 6615.
(C) The manufacturer name, make, model
number, model year and serial number for all
aircraft under FSCs 1510 and 1520.
(iii) If the schedules are acceptable, the
plant clearance officer shall complete and
send the Contractor a DD Form 1637, Notice
of Acceptance of Inventory.
(c) Proceeds from sales of surplus property.
(1) Unless otherwise provided in the
contract, the proceeds of any sale, purchase,
or retention shall be—
(i) Credited to the Government as part of
the settlement agreement;
(ii) Credited to the price or cost of the
contract;
(iii) Applied as otherwise directed by the
Contracting Officer; or
(iv) Forwarded to the plant clearance
officer.
(d) Contractor inventory in foreign
countries.
The Contracting Officer may allow the
contractor to dispose of inventory in foreign
countries provided that—
(1) The proposed purchaser’s name is not
on the list of Parties Excluded from
Procurement Programs;
(2) The sales contract or other document
forbids exports by purchasers and
subpurchasers to Communist areas (FAR
25.702) or other prohibited destinations; and
(3) Sale or other disposition of foreign
inventory by the contractor, including sale to
foreign governments, requires that the sales
contract or other document transferring title
include the following certificate:
‘‘The Purchaser certifies that the property
covered by this contract will be used in
(name of country). In the event of resale or
export by the Purchaser of any of the
property acquired at a price in excess of U.S.
$1,000 or equivalent in other currency at the
official exchange rate, the Purchaser agrees to
obtain the approval of (name and address of
Contracting Officer).’’
(e) Restrictions on purchase or retention of
contractor inventory.
(1) Contractors may not knowingly sell the
inventory to any person or that person’s
agent, employee, or household member if
that person—
(i) Is a civilian employee of the DoD or the
U.S. Coast Guard;
(ii) Is a member of the armed forces of the
United States, including the U.S. Coast
Guard; or
(iii) Has any functional or supervisory
responsibilities for or within the Defense
Reutilization and Marketing Program, or for
the disposal of contractor inventory.
(2) The Contractor may conduct internetbased sales, to include use of a third-party.
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Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Proposed Rules
(f) Demilitarization. Demilitarization of
contractor inventory may be required to
prevent the property (both serviceable and
unserviceable) from being used for its
originally intended purpose, or prevent the
release of inherent design information that
could be used against the United States. The
Contractor shall demilitarize contractor
inventory possessing offensive or defense
characteristics, and not required within DoD,
in accordance with the terms and conditions
of the contract and consistent with Defense
Demilitarization Manual, DoD 4160.21–M–1,
edition in effect as of the date of this
contract. The plant clearance officer may
authorize the purchaser to perform the
demilitarization provided the property is not
inherently dangerous to public health and
safety.
(g) Classified contractor inventory. The
Contractor shall dispose of classified
contractor inventory in accordance with
applicable security guides and regulations or
as directed by the contracting officer.
(h) Inherently dangerous inventory.
Contractor inventory dangerous to public
health or safety shall not be donated or
otherwise disposed of unless rendered
innocuous or until adequate safeguards are
provided.
(i) Compliance with export control
requirements. The Contractor is responsible
for complying with export control laws and
regulations. This includes ensuring necessary
and appropriate reviews of potential surplus
sales buyers of MLI and CCLI.
(j) Disposal of scrap.
(1) Contractor with an approved scrap
procedure.
(i) The Contractor shall submit for approval
to the property administrator a procedure for
the untability and management of scrap. The
procedure shall, at a minimum, provide for
the effective and efficient disposition of scrap
so as to minimize costs and maximize sales
proceeds; and contain the necessary internal
controls for mitigating the improper release
of non-scrap property. Government- and
contractor-owned scrap may be commingled,
with plant clearance officer concurrence,
when determined to be effective and
efficient.
(ii) Once approved by the property
administrator, the plant clearance officer may
authorize routine disposal of scrap.
(2) The property administrator may waive
the requirement for an approved scrap
procedure if the amount of scrap produced or
to be produced is minimal and poses little
risk.
(3) Scrap warranty.
(i) The Contractor shall require all buyers
of scrap to sign a DD Form 1639, Scrap
Warranty.
(ii) The Contracting Officer may release the
Contractor from the terms of the scrap
warranty in return for consideration paid to
the Government. The consideration will
represent the difference between—
(A) The sale price of the scrap; and
(B) A fair and reasonable price for the
material if it had been sold for purposes other
than scrap.
(iii) The Contractor shall pay the
consideration to the Government and the
Government may execute the release even
VerDate Mar<15>2010
16:15 Dec 02, 2010
Jkt 223001
though the contract containing the warranty
was not made directly with the Government.
(iv) If the scrap is resold to a second buyer,
the first buyer shall obtain a scrap warranty
from the second buyer. Upon receipt of the
second buyer’s scrap warranty, the
Government will release the first buyer from
liability under the original warranty.
(k) Disposal of contractor inventory for
NATO cooperative projects.
(1) North Atlantic Treaty Organization
(NATO) cooperative project agreements may
include disposal provisions of jointly
acquired property without regard to any
applicable disposal laws of the United States.
(2) Disposal of such property includes
transfer of U.S. interests in the property to
one of the other governments participating in
the agreements, or the sale of the property.
(3) Payment for the transfer or sale of any
U.S. interest shall be made in accordance
with the terms of the project agreement.
(l) Sale of surplus contractor inventory.
(1) The Contractor or its employees shall
submit their bids to the plant clearance
officer prior to soliciting bids from other
prospective bidders.
(2) The Contractor shall solicit a sufficient
number of bidders to obtain adequate
competition and use formal invitations for
bid, unless the plant clearance officer
approves use of informal bid procedures. The
Contractor shall include in its invitation for
bids, the sales terms and conditions provided
by the plant clearance officer.
(3) The Contractor shall solicit bids at least
15 calendar days before bid opening to allow
adequate opportunity to inspect property and
prepare bids.
(4) For large sales, the Contractor may use
summary lists of items offered as bid sheets
with detailed descriptions attached.
(5) In addition to mailing or delivering
notice of the proposed sale to prospective
bidders, the Contractor may (when the results
are expected to justify the additional
expense) display a notice of the proposed
sale in appropriate public places, e.g.,
publish a sales notice in appropriate trade
journals or magazines and local newspapers.
(6) When the acquisition cost of the
property to be sold at one time, in one place,
is $250,000 or more, the Contractor shall
send a notice of the proposed sale to
FedBizOpps (https://www.fbo.gov).
(7) The plant clearance officer or
representative will witness the bid opening.
Within two working days after bid opening,
the Contractor will submit to the plant
clearance officer, either electronically or
manually, two copies of the bid abstract.
(8) When demilitarization of property is
required, whether on or off contractor or
Government premises, the sales contract
must include the following provisions:
(i) Demilitarization. Item(s) ____ require
demilitarization by the Purchaser. Insert item
number(s) and specific demilitarization
requirements for item(s) shown in Defense
Demilitarization Manual, DoD 4160.21–M–1,
edition in effect as of the date of this
contract.
(ii) Demilitarization on Government or
non-Government premises. Property
requiring demilitarization shall be
demilitarized by the Purchaser under the
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
supervision of qualified Department of
Defense personnel. Property requiring
demilitarization shall not be removed, and
title shall not pass to the Purchaser, until
demilitarization has been accomplished and
verified by a Government representative.
Demilitarization will be accomplished as
specified in the contract. The Purchaser
agrees to assume all costs incident to the
demilitarization and to restore the working
area to its present condition after removing
the demilitarized property.
(iii) Failure to demilitarize. If the Purchaser
fails to demilitarize the property as specified
in the contract, the Contractor may, upon
giving ten days written notice from date of
mailing to the Purchaser—
(A) Repossess, demilitarize, and return the
property to the Purchaser. The Purchaser
hereby agrees to pay to the Contractor, prior
to the return of the property, all costs
incurred by the Contractor in repossessing,
demilitarizing, and returning the property to
the Purchaser.
(B) Repossess, demilitarize, and resell the
property, and charge the defaulting Purchaser
with all excess costs incurred by the
Contractor. The Contractor shall deduct these
costs from the purchase price and refund the
balance of the purchase price, if any, to the
Purchaser. In the event the excess costs
exceed the purchase price, the defaulting
Purchaser hereby agrees to pay these excess
costs to the Contractor.
(C) Repossess and resell the property under
similar terms and conditions. In the event
this option is exercised, the Contractor shall
charge the defaulting Purchaser with all
excess costs incurred by the Contractor. The
Contractor shall deduct these excess costs
from the original purchase price and refund
the balance of the purchase price, if any, to
the defaulting Purchaser. Should the excess
costs to the Contractor exceed the purchase
price, the defaulting Purchaser hereby agrees
to pay these excess costs to the Contractor.
(End of clause)
[FR Doc. 2010–30285 Filed 12–2–10; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
49 CFR Parts 209, 213, 214, 215, 217,
218, 219, 220, 221, 222, 223, 224, 225,
227, 228, 229, 230, 231, 232, 233, 234,
235, 236, 238, 239, 240, and 241
[Docket No. FRA–2006–25274, Notice No.
3]
RIN 2130–ZA00
Revised Proposal for Revisions to the
Schedules of Civil Penalties for a
Violation of a Federal Railroad Safety
Law or Federal Railroad Administration
Safety Regulation or Order; Reopening
and Extending the Comment Period
Federal Railroad
Administration (FRA), Department of
Transportation (DOT).
AGENCY:
E:\FR\FM\03DEP1.SGM
03DEP1
]]>Agencies
[Federal Register Volume 75, Number 232 (Friday, December 3, 2010)]
[Proposed Rules]
[Pages 75444-75448]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30285]
=======================================================================
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 201, 245, and 252
RIN Number 0750-AG38
Defense Federal Acquisition Regulation Supplement; Government
Property (DFARS Case 2009-D008)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to revise DFARS part 245, Government
Property, to reflect the recent revisions to FAR part 45, Government
Property.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before February 1, 2011, to be considered
in the formation of the final rule.
ADDRESSES: Submit comments identified by DFARS Case 2009-D008, using
any of the following methods:
[cir] Regulations.gov: https://www.regulations.gov.
Submit comments via the Internet. Follow the instructions provided
at the ``Submit a Comment'' screen. Please include ``DFARS Case 2009-
D008''.
[cir] E-mail: dfars@osd.mil. Include DFARS Case 2009-D008 in the
subject line of the message.
[cir] Fax: 703-602-0350.
[cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Mary
Overstreet, OUSD(AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301-3060. Please cite DFARS Case 2009-D008.
Comments received generally will be posted without change,
including any personal information provided. Please check https://www.regulations.gov approximately two to three days after electronic
submission to verify posting--allow 30 days for posting of comments
submitted by mail.
FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, 703-602-0311.
SUPPLEMENTARY INFORMATION:
I. Background
This rule proposes to update and reorganize DFARS subparts 245.6
and 245.7 for consistency with FAR changes published at 72 FR 27364 on
May 15, 2007, that address management of Government property in the
possession of contractors, as well as the related
[[Page 75445]]
DFARS changes published at 74 FR 37645 on July 29, under DFARS Case
2007-D020. Minor related changes are proposed in part 201 and subparts
245.1 and 245.5. The rule also proposes to add a new property disposal
clause at 252.245-70XX, Reporting, Reutilization, and Disposal. The
following table summarizes the proposed rule revisions.
------------------------------------------------------------------------
DFARS Citation Changes made by this rule
------------------------------------------------------------------------
201.670.......................... Updated and relocated from 245.70.
245.107-70....................... Redesignated as 245.107 and added
reference to DFARS clause 252.245-
70XX.
245.5............................ Added subpart to address support of
Government property administration.
245.570.......................... Updated and relocated from 245.612.
245.6............................ Renamed subpart as Reporting,
Reutilization and Disposal.
245.601.......................... Deleted section and relocated updated
definitions under DFARS clause
252.245-70XX.
245.602.......................... Added section to address
reutilization of Government
property.
245.602-1........................ Added subsection, updated, and
relocated from 245.606-3 and
245.7201.
245.602-3........................ Added subsection, updated, and
relocated from 245.608-1 and 245.608-
2.
245.602-70....................... Added subsection to address plant
clearance procedures.
245.603.......................... Deleted section heading.
245.603-70....................... Deleted subsection.
245.603-71....................... Deleted subsection. Updated and
relocated requirements under DFARS
clause 252.245-70XX.
245.604.......................... Updated and relocated policy under
DFARS clause 252.245-70XX. Renamed
section as ``Disposal of surplus
property'' to conform to FAR.
245.604-3........................ Updated and relocated from 245.73.
245.606.......................... Deleted section.
245.606-3........................ Deleted subsection. Updated and
relocated to 245.602-1.
245.606-5........................ Deleted subsection. Updated and
relocated under DFARS clause 252.245-
70XX.
245.606-70....................... Deleted subsection.
245.607.......................... Deleted section heading.
245.607-1........................ Deleted subsection. Updated and
relocated subsection under DFARS
clause 252.245-70XX.
245.607-2........................ Deleted subsection.
245.607-70....................... Deleted subsection. Updated and
relocated subsection under DFARS
clause 252.245-70XX.
245.608.......................... Deleted section heading.
245.608-1........................ Deleted subsection. Updated and
relocated to 245.602-3.
245.608-2........................ Deleted subsection. Updated and
relocated to 245.602-3.
245.608-5........................ Deleted subsection.
245.608-7........................ Deleted subsection.
245.608-70....................... Deleted subsection.
245.608-71....................... Deleted subsection.
245.608-72....................... Deleted subsection.
245.609.......................... Deleted section.
245.610.......................... Deleted section. Updated and
relocated under DFARS clause 252.245-
70XX.
245.612.......................... Deleted section. Updated and
relocated in 245.570.
245.613.......................... Deleted section.
245.70........................... Deleted subpart. Updated and
relocated to 201.670.
245.71........................... Deleted subpart. Updated and
relocated to 245.70.
245.72........................... Deleted subpart. Updated and
relocated to 245.602-1 and DFARS
Procedures, Guidance, and
Information.
245.73........................... Deleted subpart. Updated and
relocated to 245.604-3.
252.245-7000..................... Added reference to 245.107.
252.245-70XX..................... Added clause.
------------------------------------------------------------------------
II. Executive Order 12866
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 is not a
major rule under 5 U.S.C. 804.
III. Regulatory Flexibility Act
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the proposed rule imposes no new requirements on small
businesses. It makes no significant change to DoD policy regarding the
management of Government property in the possession of contractors.
Therefore, DoD has not performed an initial regulatory flexibility
analysis. DoD invites comments from small businesses and other
interested parties on the expected impact of this rule on small
entities.
DoD also will consider comments from small entities concerning the
affected DFARS subparts in accordance with 5 U.S.C. 610. Such comments
should be submitted separately and should cite DFARS Case 2009-D008.
IV. Paperwork Reduction Act
The information collection requirements of the Defense Federal
Acquisition Regulation Supplement (DFARS) part 245, Government
Property, related clauses in DFARS part 252, and related forms in DFARS
part 253, have been approved by the Office of Management and Budget
(OMB) under OMB Control Number 0704-0246. No new information collection
requirements are imposed by this proposed rule.
List of Subjects in 48 CFR Parts 201, 245, and 252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR parts 201, 245, and 252 as
follows:
1. The authority citation for 48 CFR parts 201, 245, and 252
continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM
2. Add section 201.670 to read as follows:
[[Page 75446]]
201.670 Appointment of property administrators and plant clearance
officers.
(a) The head of a contracting activity shall appoint or terminate
(in writing) property administrators and plant clearance officers.
(b) In appointing qualified property administrators and plant
clearance officers, the appointment authority shall consider
experience, training, education, business acumen, judgment, character,
and ethics.
PART 245--GOVERNMENT PROPERTY
245.107-70 [Redesignated as 245.107]
3. Redesignate section 245.107-70 as 245.107 and revise to read as
follows:
245.107 Contract clauses.
(a) Use the clause at 252.245-7000, Government-Furnished Mapping,
Charting, and Geodesy Property, in solicitations and contracts when
mapping, charting, and geodesy property is to be furnished.
(b) Use the clause at 252.245-70XX, Reporting, Reutilization and
Disposal, in solicitations and contracts that contain the clause at--
(1) FAR 52.245-1, Government Property; or
(2) FAR 52.245-2, Government Property Installation Operation
Services.
4. Add subpart 245.5 to read as follows:
Sec.
Subpart 245.5--Support Government Property Administration
245.570 Storage at the Government's expense.
All storage contracts or agreements shall be separately priced and
shall include all costs associated with the storage.
5. Revise subpart 245.6 to read as follows:
Subpart 245.6--Reporting, Reutilization, and Disposal
Sec.
245.602 Reutilization of Government property.
245.602-1 Inventory disposal schedules.
245.602-3 Screening.
245.602-70 Plant clearance procedures.
245.604 Disposal of surplus property.
245.604-3 Sale of surplus property.
Subpart 245.6--Reporting, Reutilization, and Disposal
245.602 Reutilization of Government property.
245.602-1 Inventory disposal schedules.
Plant clearance officers shall verify inventory schedules to
determine the following:
(1) Allocability.
(i) Review contract requirements, delivery schedules, bills of
material, and other pertinent documents to determine whether schedules
include property that--
(A) Is appropriate for use on the contract; or
(B) Exceeds the quantity required for completion of the contract,
but could be diverted to other commercial work or Government use.
(ii) Review the contractor's--
(A) Recent purchases of similar material;
(B) Plans for current and scheduled production;
(C) Stock record entries; and
(D) Bills of material for similar items.
(2) Quantity. While a complete physical count of each item may not
be required, take adequate measures to provide reasonable assurance
that available inventory is in accordance with quantities listed on the
inventory schedules.
(3) Condition. Ensure the inventory condition matches that shown on
the inventory schedules.
245.602-3 Screening.
Property will be screened DoD-wide, including the contracting
agency, requiring agency and, as appropriate, the General Services
Administration. The requiring agency shall have priority for retention
of listed items. All required screening must be completed before any
surplus contractor inventory sale can take place. The plant clearance
officer shall arrange for inspection of property at the contractor's
plant if requested by a prospective transferee, in such a manner as to
avoid interruption of the contractor's operations.
245.602-70 Plant clearance procedures.
Follow the procedures at PGI 245.602-70 for establishing and
processing a plant clearance case.
245.604 Disposal of surplus property.
245.604-3 Sale of surplus property.
Plant clearance officers shall use the following procedures for the
sale of surplus property:
(1) Informal bid procedures. The plant clearance officer may direct
the contractor to issue informal invitations for bid (orally,
telephonically, or by other informal media), provided--
(i) Maximum practical competition is maintained;
(ii) Sources solicited are recorded; and
(iii) Informal bids are confirmed in writing.
(2) Sale approval and award.
(i) Evaluate bids to establish that the sale price is fair and
reasonable, taking into consideration--
(A) Knowledge or tests of the market;
(B) Current published prices for the property;
(C) The nature, condition, quantity, and location of the property;
and
(D) Past sale history for like or similar items.
(ii) Approve award to the responsible bidder whose bid is most
advantageous to the Government. The plant clearance officer shall not
approve award to any bidder who is not eligible to enter into a
contract with DoD due to inclusion on the Excluded Parties List System.
If a compelling reason exists to award to a bidder on the excluded
list, the plant clearance officer shall request approval from the
contracting officer.
(iii) Notify the contractor of the bidder to whom an award will be
made within five working days from receipt of bids.
(3) Noncompetitive sales.
(i) Noncompetitive sales include purchases or retention at less
than cost by the contractor. Noncompetitive sales may be made when--
(A) The contracting department/agency or the plant clearance
officer determines that this method is essential to expeditious plant
clearance; and
(B) The Government's interests are adequately protected.
(ii) Noncompetitive sales shall be at fair and reasonable prices,
not less than those reasonably expected under competitive sales.
(iii) Conditions justifying non-competitive sales are--
(A) No acceptable bids are received under competitive sale;
(B) Anticipated proceeds do not warrant competitive sale;
(C) Specialized nature of the property would not create bidder
interest;
(D) Removal of the property would reduce its value or result in
disproportionate handling expenses; or
(E) Such action is essential to the Government's interests.
Subpart 245.70--[Removed]
6. Subpart 245.70 is removed.
7. Redesignate subpart 245.71 as 245.70, and revise to read as
follows:
Subpart 245.70--Plant Clearance Forms
Sec.
245.7001 Forms.
245.7001-1 Standard Form 97, Certificate of Release of a Motor
Vehicle (Agency Record Copy).
245.7001-2 DD Form 1149, Requisition and Invoice Shipping Document.
245.7001-3 DD Form 1348-1, DoD Single Line Item Release/Receipt
Document.
[[Page 75447]]
245.7001-4 DD Form 1640, Request for Plant Clearance.
245.7001-5 DD Form 1641, Disposal Determination/Approval.
245.7001-6 Defense Logistics Agency Form 1822, End Use Certificate.
Subpart 245.70--Plant Clearance Forms
245.7001 Forms.
Use the forms listed below in performance of plant clearance
actions.
245.7001-1 Standard Form 97, Certificate of Release of a Motor Vehicle
(Agency Record Copy).
Use for transfers, donations, and sales of motor vehicles. The
contracting officer shall execute the SF 97 and furnish it to the
purchaser.
245.7001-2 DD Form 1149, Requisition and Invoice Shipping Document.
Use for transfer and donation of contractor inventory.
245.7001-3 DD Form 1348-1, DoD Single Line Item Release/Receip
Document.
Use when authorized by the plant clearance officer.
245.7001-4 DD Form 1640, Request for Plant Clearance.
Use to request plant clearance assistance or transfer plant
clearance.
245.7001-5 DD Form 1641, Disposal Determination/Approval.
Use to record rationale for the following disposal determinations:
(a) Downgrade useable property to scrap.
(b) Abandonment or destruction.
(c) Noncompetitive sale of surplus property.
245.7001-6 Defense Logistics Agency Form 1822, End Use Certificate.
Use when directed by the plant clearance officer.
Subpart 245.72--[Removed]
8. Subpart 245.72 is removed.
Subpart 245.73--[Removed]
9. Subpart 245.73 is removed.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
10. Revise the introductory text of section 252.245-7000 to read as
follows:
252.245-7000 Government-Furnished Mapping, Charting, and Geodesy
Property.
As prescribed in 245.107(a), use the following clause:
* * * * *
11. Add section 252.245-70XX to read as follows:
252.245-70XX Reporting, Reutilization and Disposal.
As prescribed in 245.107(b), use the following clause:
REPORTING, REUTILIZATION AND DISPOSAL (DATE)
(a) Definitions. As used in this clause--
(1) Commerce Control List Item (CCLI) means commodities and
associated technical data (including software) subject to export
controls by the Department of Commerce. (14 CFR 772)
(2) Demilitarization means the act of eliminating the functional
capabilities and inherent military design features from DoD personal
property. Methods and degree range from removal and destruction of
critical features to total destruction by cutting, tearing,
crushing, mangling, shredding, melting, burning, etc.
(3) Munitions List Items (MLI) means commodities and associated
technical data (including software) contained in the U.S. Munitions
List (USML) that are subject to export controls by the Department of
State. (22 CFR 121)
(4) Scrap means property that has no value except for its basic
material content. For purposes of demilitarization, scrap is defined
as recyclable waste and discarded materials derived from items that
have been rendered useless beyond repair, rehabilitation, or
restoration such that the item's original identity, utility, form,
fit and function have been destroyed. Items can be classified as
scrap if processed by cutting, tearing, crushing, mangling,
shredding, or melting. Intact or recognizable MLI or CCLI
components, and parts are not ``scrap.''
(5) Serviceable or usable property means property with potential
for reutilization or sale ``as is'' or with minor repairs or
alterations; in Federal Condition Codes: A1, A2, A4, A5, B1, and B4.
(b) Inventory disposal schedules.
(1) The Contractor shall complete SF 1428, Inventory Schedule B,
within the Plant Clearance Automated Reutilization Screening System
(PCARSS). Information on PCARSS can be obtained from the plant
clearance officer and at https://www.dcma.mil/ITCSO/CBT/PCARSS/index.cfm. Instructions for completing the form are provided on the
reverse side of the form.
(i) SF 1428 shall contain the following supply condition codes
together with disposal codes 1 through 9, X, and S (e.g., A1, F7,
SS):
(A) A--New, used, repaired, or reconditioned property;
serviceable and issuable to all customers without limitations or
restrictions; includes material with remaining shelf life of more
than six months.
(B) B--New, used, repaired, or reconditioned property;
serviceable and issuable or for its intended purpose but restricted
from issue to specific units, activities, or geographical areas
because of its limited usefulness or short service-life expectancy;
includes material and remaining shelf life of three to six months.
(C) F--Economically reparable property which requires repair,
overhaul or reconditioning; includes reparable items which are
radioactively contaminated.
(D) H--Property which has been determined to be unserviceable
and does not meet repair criteria.
(E) S--Property that has no value except for its basic material
content.
(ii) The item description on the SF 1428 shall contain the
following:
(A) The applicable Federal Supply Code (FSC) for all items,
except items in scrap condition.
(B) The manufacturer name for all aircraft components under
Federal Supply Group (FSG) 16 or 17 and FSCs 2620, 2810, 2915, 2925,
2935, 2945, 2995, 4920, 5821, 5826, 5841, 6340, and 6615.
(C) The manufacturer name, make, model number, model year and
serial number for all aircraft under FSCs 1510 and 1520.
(iii) If the schedules are acceptable, the plant clearance
officer shall complete and send the Contractor a DD Form 1637,
Notice of Acceptance of Inventory.
(c) Proceeds from sales of surplus property.
(1) Unless otherwise provided in the contract, the proceeds of
any sale, purchase, or retention shall be--
(i) Credited to the Government as part of the settlement
agreement;
(ii) Credited to the price or cost of the contract;
(iii) Applied as otherwise directed by the Contracting Officer;
or
(iv) Forwarded to the plant clearance officer.
(d) Contractor inventory in foreign countries.
The Contracting Officer may allow the contractor to dispose of
inventory in foreign countries provided that--
(1) The proposed purchaser's name is not on the list of Parties
Excluded from Procurement Programs;
(2) The sales contract or other document forbids exports by
purchasers and subpurchasers to Communist areas (FAR 25.702) or
other prohibited destinations; and
(3) Sale or other disposition of foreign inventory by the
contractor, including sale to foreign governments, requires that the
sales contract or other document transferring title include the
following certificate:
``The Purchaser certifies that the property covered by this
contract will be used in (name of country). In the event of resale
or export by the Purchaser of any of the property acquired at a
price in excess of U.S. $1,000 or equivalent in other currency at
the official exchange rate, the Purchaser agrees to obtain the
approval of (name and address of Contracting Officer).''
(e) Restrictions on purchase or retention of contractor
inventory.
(1) Contractors may not knowingly sell the inventory to any
person or that person's agent, employee, or household member if that
person--
(i) Is a civilian employee of the DoD or the U.S. Coast Guard;
(ii) Is a member of the armed forces of the United States,
including the U.S. Coast Guard; or
(iii) Has any functional or supervisory responsibilities for or
within the Defense Reutilization and Marketing Program, or for the
disposal of contractor inventory.
(2) The Contractor may conduct internet-based sales, to include
use of a third-party.
[[Page 75448]]
(f) Demilitarization. Demilitarization of contractor inventory
may be required to prevent the property (both serviceable and
unserviceable) from being used for its originally intended purpose,
or prevent the release of inherent design information that could be
used against the United States. The Contractor shall demilitarize
contractor inventory possessing offensive or defense
characteristics, and not required within DoD, in accordance with the
terms and conditions of the contract and consistent with Defense
Demilitarization Manual, DoD 4160.21-M-1, edition in effect as of
the date of this contract. The plant clearance officer may authorize
the purchaser to perform the demilitarization provided the property
is not inherently dangerous to public health and safety.
(g) Classified contractor inventory. The Contractor shall
dispose of classified contractor inventory in accordance with
applicable security guides and regulations or as directed by the
contracting officer.
(h) Inherently dangerous inventory. Contractor inventory
dangerous to public health or safety shall not be donated or
otherwise disposed of unless rendered innocuous or until adequate
safeguards are provided.
(i) Compliance with export control requirements. The Contractor
is responsible for complying with export control laws and
regulations. This includes ensuring necessary and appropriate
reviews of potential surplus sales buyers of MLI and CCLI.
(j) Disposal of scrap.
(1) Contractor with an approved scrap procedure.
(i) The Contractor shall submit for approval to the property
administrator a procedure for the untability and management of
scrap. The procedure shall, at a minimum, provide for the effective
and efficient disposition of scrap so as to minimize costs and
maximize sales proceeds; and contain the necessary internal controls
for mitigating the improper release of non-scrap property.
Government- and contractor-owned scrap may be commingled, with plant
clearance officer concurrence, when determined to be effective and
efficient.
(ii) Once approved by the property administrator, the plant
clearance officer may authorize routine disposal of scrap.
(2) The property administrator may waive the requirement for an
approved scrap procedure if the amount of scrap produced or to be
produced is minimal and poses little risk.
(3) Scrap warranty.
(i) The Contractor shall require all buyers of scrap to sign a
DD Form 1639, Scrap Warranty.
(ii) The Contracting Officer may release the Contractor from the
terms of the scrap warranty in return for consideration paid to the
Government. The consideration will represent the difference
between--
(A) The sale price of the scrap; and
(B) A fair and reasonable price for the material if it had been
sold for purposes other than scrap.
(iii) The Contractor shall pay the consideration to the
Government and the Government may execute the release even though
the contract containing the warranty was not made directly with the
Government.
(iv) If the scrap is resold to a second buyer, the first buyer
shall obtain a scrap warranty from the second buyer. Upon receipt of
the second buyer's scrap warranty, the Government will release the
first buyer from liability under the original warranty.
(k) Disposal of contractor inventory for NATO cooperative
projects.
(1) North Atlantic Treaty Organization (NATO) cooperative
project agreements may include disposal provisions of jointly
acquired property without regard to any applicable disposal laws of
the United States.
(2) Disposal of such property includes transfer of U.S.
interests in the property to one of the other governments
participating in the agreements, or the sale of the property.
(3) Payment for the transfer or sale of any U.S. interest shall
be made in accordance with the terms of the project agreement.
(l) Sale of surplus contractor inventory.
(1) The Contractor or its employees shall submit their bids to
the plant clearance officer prior to soliciting bids from other
prospective bidders.
(2) The Contractor shall solicit a sufficient number of bidders
to obtain adequate competition and use formal invitations for bid,
unless the plant clearance officer approves use of informal bid
procedures. The Contractor shall include in its invitation for bids,
the sales terms and conditions provided by the plant clearance
officer.
(3) The Contractor shall solicit bids at least 15 calendar days
before bid opening to allow adequate opportunity to inspect property
and prepare bids.
(4) For large sales, the Contractor may use summary lists of
items offered as bid sheets with detailed descriptions attached.
(5) In addition to mailing or delivering notice of the proposed
sale to prospective bidders, the Contractor may (when the results
are expected to justify the additional expense) display a notice of
the proposed sale in appropriate public places, e.g., publish a
sales notice in appropriate trade journals or magazines and local
newspapers.
(6) When the acquisition cost of the property to be sold at one
time, in one place, is $250,000 or more, the Contractor shall send a
notice of the proposed sale to FedBizOpps (https://www.fbo.gov).
(7) The plant clearance officer or representative will witness
the bid opening. Within two working days after bid opening, the
Contractor will submit to the plant clearance officer, either
electronically or manually, two copies of the bid abstract.
(8) When demilitarization of property is required, whether on or
off contractor or Government premises, the sales contract must
include the following provisions:
(i) Demilitarization. Item(s) -------- require demilitarization
by the Purchaser. Insert item number(s) and specific
demilitarization requirements for item(s) shown in Defense
Demilitarization Manual, DoD 4160.21-M-1, edition in effect as of
the date of this contract.
(ii) Demilitarization on Government or non-Government premises.
Property requiring demilitarization shall be demilitarized by the
Purchaser under the supervision of qualified Department of Defense
personnel. Property requiring demilitarization shall not be removed,
and title shall not pass to the Purchaser, until demilitarization
has been accomplished and verified by a Government representative.
Demilitarization will be accomplished as specified in the contract.
The Purchaser agrees to assume all costs incident to the
demilitarization and to restore the working area to its present
condition after removing the demilitarized property.
(iii) Failure to demilitarize. If the Purchaser fails to
demilitarize the property as specified in the contract, the
Contractor may, upon giving ten days written notice from date of
mailing to the Purchaser--
(A) Repossess, demilitarize, and return the property to the
Purchaser. The Purchaser hereby agrees to pay to the Contractor,
prior to the return of the property, all costs incurred by the
Contractor in repossessing, demilitarizing, and returning the
property to the Purchaser.
(B) Repossess, demilitarize, and resell the property, and charge
the defaulting Purchaser with all excess costs incurred by the
Contractor. The Contractor shall deduct these costs from the
purchase price and refund the balance of the purchase price, if any,
to the Purchaser. In the event the excess costs exceed the purchase
price, the defaulting Purchaser hereby agrees to pay these excess
costs to the Contractor.
(C) Repossess and resell the property under similar terms and
conditions. In the event this option is exercised, the Contractor
shall charge the defaulting Purchaser with all excess costs incurred
by the Contractor. The Contractor shall deduct these excess costs
from the original purchase price and refund the balance of the
purchase price, if any, to the defaulting Purchaser. Should the
excess costs to the Contractor exceed the purchase price, the
defaulting Purchaser hereby agrees to pay these excess costs to the
Contractor.
(End of clause)
[FR Doc. 2010-30285 Filed 12-2-10; 8:45 am]
BILLING CODE 5001-08-P
