VA Acquisition Regulation: Subcontracting Policies and Procedures; Government Property, 47097-47099 [2018-20183]

Download as PDF 47097 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations Radio facilities Fee amount Carriers: 1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form 499–A). 2. Toll Free Number Fee ......................................................................................................................................... 5. Section 1.1155 is revised to read as follows: ■ 6. Section 1.1156 is revised to read as follows: $.10 per Toll Free Number. § 1.1155 Schedule of regulatory fees for cable television services. 1. Cable Television Relay Service ................................................................................................................................. 2. Cable TV System, Including IPTV (per subscriber) ................................................................................................... 3. Direct Broadcast Satellite (DBS) ................................................................................................................................ ■ $.00291. § 1.1156 Schedule of regulatory fees for international services. $1,075. $.77. $.48 per subscriber. Stations. The following schedule applies for the listed services: (a) Geostationary Orbit (GSO) and Non-Geostationary Orbit (NGSO) Space Fee category Fee amount Space Stations (Geostationary Orbit) .............................................................................................................................................. Space Stations (Non-Geostationary Orbit) ...................................................................................................................................... Earth Stations: Transmit/Receive & Transmit only (per authorization or registration) ................................................................... (b) International Terrestrial and Satellite. (1) Regulatory fees for International Bearer Circuits are to be paid by facilities-based common carriers and non-common carrier basis that have active (used or leased) international bearer circuits as of December 31 of the prior year in any terrestrial or satellite transmission facility for the provision of service to an end user or resale carrier, which includes active circuits to themselves or to their affiliates. ‘‘Active circuits’’ for these purposes include backup and redundant circuits. In addition, whether circuits are used specifically for voice or data is not relevant in determining that they are active circuits. (2) The fee amount on a per active Gbps basis will be determined for each fiscal year. International terrestrial and satellite (capacity as of December 31, 2017) Fee amount Terrestrial Common Carrier ............................................................................................................................................ Terrestrial Non-Common Carrier. Satellite Common Carrier. Satellite Non-Common Carrier. (c) Submarine cable. Regulatory fees for submarine cable systems will be paid annually, per cable landing license, for all submarine cable systems operating as of December 31 of the prior $127,850 122,775 325 $176 per Gbps Circuit. year. The fee amount will be determined by the Commission for each fiscal year. Submarine cable systems (capacity as of Dec. 31, 2017) Fee amount <50 Gbps ......................................................................................................................................................................................... 50 Gbps or greater, but less than 250 Gbps .................................................................................................................................. 250 Gbps or greater, but less than 1,000 Gbps ............................................................................................................................. 1,0000 Gbps or greater, but less than 4,000 Gbps ........................................................................................................................ 4,000 Gbps or greater ..................................................................................................................................................................... 7. Section 1.1940(c) is revised to read as follows: ■ § 1.1940 Assessment. daltland on DSKBBV9HB2PROD with RULES * * * * * (c) The Commission shall assess administrative costs incurred for processing and handling delinquent debts, unless otherwise prohibited by statute. The calculation of administrative costs may be based on actual costs incurred or upon estimated VerDate Sep<11>2014 16:42 Sep 17, 2018 Jkt 244001 costs as determined by the Commission. Commission administrative costs include the personnel and service costs (e.g., telephone, copier, and overhead) to notify and collect the debt, without regard to the success of such efforts by the Commission. * * * * * [FR Doc. 2018–19548 Filed 9–17–18; 8:45 am] PO 00000 DEPARTMENT OF VETERANS AFFAIRS 48 CFR Parts 844 and 845 RIN 2900–AQ05 VA Acquisition Regulation: Subcontracting Policies and Procedures; Government Property ACTION: Frm 00071 Fmt 4700 Department of Veterans Affairs. Final rule. AGENCY: BILLING CODE 6712–01–P Sfmt 4700 $9,850 19,725 39,425 78,875 157,750 E:\FR\FM\18SER1.SGM 18SER1 47098 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations The Department of Veterans Affairs (VA) is amending and updating its VA Acquisition Regulation (VAAR) in phased increments to revise or remove any policy superseded by changes in the Federal Acquisition Regulation (FAR), to remove procedural guidance internal to VA into the VA Acquisition Manual (VAAM), and to incorporate any new agency specific regulations or policies. These changes seek to streamline and align the VAAR with the FAR and remove outdated and duplicative requirements and reduce burden on contractors. The VAAM incorporates portions of the removed VAAR as well as other internal agency acquisition policy. VA will rewrite certain parts of the VAAR and VAAM, and as VAAR parts are rewritten, we will publish them in the Federal Register. In particular, this rulemaking revises VAAR concerning Subcontracting Policies and Procedures and Government Property. SUMMARY: This rule is effective on October 18, 2018. DATES: Mr. Rafael N. Taylor, Senior Procurement Analyst, Procurement Policy and Warrant Management Services, 003A2A, 425 I Street, NW, Washington, DC 20001, (202) 382–2787. (This is not a toll-free number.) FOR FURTHER INFORMATION CONTACT: On April 6, 2018, VA published a proposed rule in the Federal Register (83 FR 14833) which announced VA’s intent to amend regulations for VAAR Case RIN 2900– AQ05 (Parts 844 and 845). In particular, this final rule implements FAR part 44 by making public VA’s additional requirements for providing its consent to subcontract, describes items that should be evaluated as a part of a contractor’s purchasing system review and establishes that contractors should determine whether subcontract items meet the FAR definition of a commercial item and implements and supplements FAR part 45 by addressing procedures for contractors to document their acquisition of property for use in the service of VA contracts; to address the transfer of title to the Government of contractor-acquired property; and to outline the procedures for the use of such property on a successor contract. VA provided a 60-day comment period for the public to respond to the proposed rule. The comment period for the proposed rule ended on June 5, 2018 and VA received no comments. This document adopts as a final rule the proposed rule published in the Federal Register on April 6, 2018, with minor formatting and/or grammatical edits. daltland on DSKBBV9HB2PROD with RULES SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 16:42 Sep 17, 2018 Jkt 244001 Unfunded Mandates The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in the expenditure by State, local, and tribal Governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year. This final rule will have no such effect on State, local, and tribal Governments or on the private sector. Paperwork Reduction Act This final rule contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521). Regulatory Flexibility Act This final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601–612. The overall impact of this final rule will be of benefit to small businesses owned by Veterans or service-disabled Veterans as the VAAR is being updated to remove extraneous procedural information that applies only to VA’s internal operating procedures. VA is merely adding existing and current regulatory requirements to the VAAR and removing any guidance that is applicable only to VA’s internal operation processes or procedures. VA estimates no cost impact to individual businesses would result from these rule updates. This rulemaking does not change VA’s policy regarding small businesses, does not have an economic impact to individual businesses, and there are no increased or decreased costs to small business entities. On this basis, the final rule would not have an economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601–612. Therefore, under 5 U.S.C. 605(b), this regulatory action is exempt from the initial and final regulatory flexibility analysis requirements of sections 603 and 604. Executive Orders 12866, 13563 and 13771 Executive Orders (E.O.) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs PO 00000 Frm 00072 Fmt 4700 Sfmt 4700 and benefits of reducing costs, of harmonizing rules, and of promoting flexibility. E.O. 12866, Regulatory Planning and Review defines ‘‘significant regulatory action’’ to mean any regulatory action that is likely to result in a rule that may: ‘‘(1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal Governments or communities; (2) Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) Raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in this Executive order.’’ VA has examined the economic, interagency, budgetary, legal, and policy implications of this regulatory action, and it has been determined this rule is not a significant regulatory action under E.O. 12866. This final rule is not an E.O. 13771 regulatory action because this rule is not significant under E.O. 12866. VA’s impact analysis can be found as a supporting document at http:// www.regulations.gov, usually within 48 hours after the rulemaking document is published. Additionally, a copy of the rulemaking and its impact analysis are available on VA’s website at http:// www.va.gov/orpm by following the link for VA Regulations Published from FY 2004 Through Fiscal Year to Date. List of Subjects 48 CFR Part 844 Government procurement, Reporting and recordkeeping requirements. 48 CFR Part 845 Government procurement, Government property, Reporting and recordkeeping requirements. Signing Authority The Secretary of Veterans Affairs approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. Robert L. Wilkie, Secretary, Department of Veterans Affairs, approved this document on August 24, 2018, for publication. E:\FR\FM\18SER1.SGM 18SER1 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Rules and Regulations Dated: September 12, 2018. Consuela Benjamin, Regulations Development Coordinator, Office of Regulation Policy & Management, Office of the Secretary, Department of Veterans Affairs. does not affect the contracting officer’s responsibilities or determinations made under FAR 15.403–1(c)(3). For the reasons set out in the preamble, VA amends 48 CFR by adding parts 844 and 845 to read as follows: Sec. ■ Sec. 845.402 Title to contractor-acquired property. Subpart 844.4—Subcontracts for Commercial Items and Commercial Components 844.402 Policy requirements. 845.402–70 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301–1.304. Subpart 844.2—Consent to Subcontracts 844.202–2 Considerations. (a)(14) Where other than lowest price is the basis for subcontractor selection, has the contractor adequately substantiated the selection as being fair, reasonable, and representing the best value to the Government? Subpart 844.3—Contractors’ Purchasing Systems Reviews 844.303 Extent of review. daltland on DSKBBV9HB2PROD with RULES (f) Policies and procedures pertaining to the use of VA-verified ServiceDisabled Veteran-Owned Small Businesses (SDVOSBs) and VeteranOwned Small Businesses (VOSBs) and utilization in accordance with subpart 819.70 and the Veterans First Contracting Program; (l) Documentation of commercial item determinations to ensure compliance with the definition of ‘‘commercial item’’ in FAR 2.101; and (m) For acquisitions involving electronic parts, that the contractor has implemented a counterfeit electronic part detection and avoidance system to ensure that counterfeit electronic parts do not enter the supply chain. Policy. (a) For other than firm-fixed-price contracts, contractor-acquired property items not anticipated at time of contract award, or not otherwise specified for delivery on an existing line item, shall, by means of a contract modification, be specified for delivery to the Government on an added contract line item. The value of such contractor-acquired property item shall be recorded at the original purchase cost. Unless otherwise noted by the contractor at the time of delivery to the Government, the placedin-service date shall be the date of acquisition or completed manufacture, if fabricated. (b) Following delivery and acceptance by the Government of contractoracquired property items, if these items are to be retained by the contractor for continued use under a successor contract, these items become Government-furnished property (GFP). The items shall be added to the successor contract as GFP by contract modification. (c) Individual contractor-acquired property items should be recorded in the contractor’s property management system at the contractor’s original purchase cost. (d) All other contractor inventory that is excess to the needs of the contract shall be disposed of in accordance with FAR subpart 45.6. [FR Doc. 2018–20183 Filed 9–17–18; 8:45 am] Subpart 844.4—Subcontracts for Commercial Items and Commercial Components 844.402 [Docket No. 170817779–8161–02] Subpart 845.4—Title to Government Property Subpart 845.4—Title to Government Property Subpart 844.3—Contractors’ Purchasing Systems Reviews 844.303 Extent of review. BILLING CODE 8320–01–P (a)(3) Determine whether a particular subcontract item meets the definition of a commercial item. This requirement 16:42 Sep 17, 2018 Jkt 244001 PO 00000 RIN 0648–XG491 Fisheries of the Exclusive Economic Zone Off Alaska; ‘‘Other Flatfish’’ in the Bering Sea and Aleutian Islands Management Area National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Temporary rule; closure. AGENCY: NMFS is prohibiting retention of ‘‘other flatfish’’ in the Bering Sea and Aleutian Islands management area (BSAI). This action is necessary because the 2018 ‘‘other flatfish’’ initial total allowable catch (ITAC) in the BSAI has been reached. DATES: Effective 1200 hrs, Alaska local time (A.l.t.), September 13, 2018, through 2400 hrs, A.l.t., December 31, 2018. FOR FURTHER INFORMATION CONTACT: Steve Whitney, 907–586–7228. SUPPLEMENTARY INFORMATION: NMFS manages the groundfish fishery in the BSAI according to the Fishery Management Plan for Groundfish of the Bering Sea and Aleutian Islands Management Area (FMP) prepared by the North Pacific Fishery Management Council under authority of the Magnuson-Stevens Fishery Conservation and Management Act. Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679. The 2018 ‘‘other flatfish’’ ITAC in the BSAI is 3,400 metric tons (mt) as established by the final 2018 and 2019 harvest specifications for groundfish in the BSAI (83 FR 8365, February 27, 2018). In accordance with § 679.20(d)(2), the Administrator, Alaska Region, NMFS (Regional Administrator), has determined that the 2018 ‘‘other flatfish’’ ITAC in the Bering Sea subarea of the BSAI has been reached. Therefore, NMFS is requiring that ‘‘other flatfish’’ in the BSAI be treated as prohibited species in accordance with § 679.21(b). SUMMARY: Classification This action responds to the best available information recently obtained from the fishery. The Assistant Administrator for Fisheries, NOAA Policy requirements. VerDate Sep<11>2014 National Oceanic and Atmospheric Administration 50 CFR Part 679 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301–1.304. Subpart 844.2—Consent to Subcontracts 844.202–2 Considerations. DEPARTMENT OF COMMERCE PART 845—GOVERNMENT PROPERTY 845.402 Title to contractor-acquired property. 845.402–70 Policy. PART 844—SUBCONTRACTING POLICIES AND PROCEDURES 47099 Frm 00073 Fmt 4700 Sfmt 4700 E:\FR\FM\18SER1.SGM 18SER1

Agencies

[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)]
[Rules and Regulations]
[Pages 47097-47099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20183]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 844 and 845

RIN 2900-AQ05


VA Acquisition Regulation: Subcontracting Policies and 
Procedures; Government Property

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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

[[Page 47098]]

SUMMARY: The Department of Veterans Affairs (VA) is amending and 
updating its VA Acquisition Regulation (VAAR) in phased increments to 
revise or remove any policy superseded by changes in the Federal 
Acquisition Regulation (FAR), to remove procedural guidance internal to 
VA into the VA Acquisition Manual (VAAM), and to incorporate any new 
agency specific regulations or policies. These changes seek to 
streamline and align the VAAR with the FAR and remove outdated and 
duplicative requirements and reduce burden on contractors. The VAAM 
incorporates portions of the removed VAAR as well as other internal 
agency acquisition policy. VA will rewrite certain parts of the VAAR 
and VAAM, and as VAAR parts are rewritten, we will publish them in the 
Federal Register. In particular, this rulemaking revises VAAR 
concerning Subcontracting Policies and Procedures and Government 
Property.

DATES: This rule is effective on October 18, 2018.

FOR FURTHER INFORMATION CONTACT: Mr. Rafael N. Taylor, Senior 
Procurement Analyst, Procurement Policy and Warrant Management 
Services, 003A2A, 425 I Street, NW, Washington, DC 20001, (202) 382-
2787. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: On April 6, 2018, VA published a proposed 
rule in the Federal Register (83 FR 14833) which announced VA's intent 
to amend regulations for VAAR Case RIN 2900-AQ05 (Parts 844 and 845). 
In particular, this final rule implements FAR part 44 by making public 
VA's additional requirements for providing its consent to subcontract, 
describes items that should be evaluated as a part of a contractor's 
purchasing system review and establishes that contractors should 
determine whether subcontract items meet the FAR definition of a 
commercial item and implements and supplements FAR part 45 by 
addressing procedures for contractors to document their acquisition of 
property for use in the service of VA contracts; to address the 
transfer of title to the Government of contractor-acquired property; 
and to outline the procedures for the use of such property on a 
successor contract.
    VA provided a 60-day comment period for the public to respond to 
the proposed rule. The comment period for the proposed rule ended on 
June 5, 2018 and VA received no comments. This document adopts as a 
final rule the proposed rule published in the Federal Register on April 
6, 2018, with minor formatting and/or grammatical edits.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal Governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and tribal Governments or on the private sector.

Paperwork Reduction Act

    This final rule contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Regulatory Flexibility Act

    This final rule will not have a significant economic impact on a 
substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. The overall impact of 
this final rule will be of benefit to small businesses owned by 
Veterans or service-disabled Veterans as the VAAR is being updated to 
remove extraneous procedural information that applies only to VA's 
internal operating procedures. VA is merely adding existing and current 
regulatory requirements to the VAAR and removing any guidance that is 
applicable only to VA's internal operation processes or procedures. VA 
estimates no cost impact to individual businesses would result from 
these rule updates. This rulemaking does not change VA's policy 
regarding small businesses, does not have an economic impact to 
individual businesses, and there are no increased or decreased costs to 
small business entities. On this basis, the final rule would not have 
an economic impact on a substantial number of small entities as they 
are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. 
Therefore, under 5 U.S.C. 605(b), this regulatory action is exempt from 
the initial and final regulatory flexibility analysis requirements of 
sections 603 and 604.

Executive Orders 12866, 13563 and 13771

    Executive Orders (E.O.) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
E.O. 12866, Regulatory Planning and Review defines ``significant 
regulatory action'' to mean any regulatory action that is likely to 
result in a rule that may: ``(1) Have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
Governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive order.''
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action, and it has been 
determined this rule is not a significant regulatory action under E.O. 
12866. This final rule is not an E.O. 13771 regulatory action because 
this rule is not significant under E.O. 12866.
    VA's impact analysis can be found as a supporting document at 
http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
http://www.va.gov/orpm by following the link for VA Regulations 
Published from FY 2004 Through Fiscal Year to Date.

List of Subjects

48 CFR Part 844

    Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 845

    Government procurement, Government property, Reporting and 
recordkeeping requirements.

Signing Authority

    The Secretary of Veterans Affairs approved this document and 
authorized the undersigned to sign and submit the document to the 
Office of the Federal Register for publication electronically as an 
official document of the Department of Veterans Affairs. Robert L. 
Wilkie, Secretary, Department of Veterans Affairs, approved this 
document on August 24, 2018, for publication.


[[Page 47099]]


    Dated: September 12, 2018.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

0
For the reasons set out in the preamble, VA amends 48 CFR by adding 
parts 844 and 845 to read as follows:

PART 844--SUBCONTRACTING POLICIES AND PROCEDURES

Sec.
Subpart 844.2--Consent to Subcontracts
844.202-2 Considerations.
Subpart 844.3--Contractors' Purchasing Systems Reviews
844.303 Extent of review.
Subpart 844.4--Subcontracts for Commercial Items and Commercial 
Components
844.402 Policy requirements.


    Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301-
1.304.

Subpart 844.2--Consent to Subcontracts


844.202-2  Considerations.

    (a)(14) Where other than lowest price is the basis for 
subcontractor selection, has the contractor adequately substantiated 
the selection as being fair, reasonable, and representing the best 
value to the Government?

Subpart 844.3--Contractors' Purchasing Systems Reviews


844.303  Extent of review.

    (f) Policies and procedures pertaining to the use of VA-verified 
Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-
Owned Small Businesses (VOSBs) and utilization in accordance with 
subpart 819.70 and the Veterans First Contracting Program;
    (l) Documentation of commercial item determinations to ensure 
compliance with the definition of ``commercial item'' in FAR 2.101; and
    (m) For acquisitions involving electronic parts, that the 
contractor has implemented a counterfeit electronic part detection and 
avoidance system to ensure that counterfeit electronic parts do not 
enter the supply chain.

Subpart 844.4--Subcontracts for Commercial Items and Commercial 
Components


844.402  Policy requirements.

    (a)(3) Determine whether a particular subcontract item meets the 
definition of a commercial item. This requirement does not affect the 
contracting officer's responsibilities or determinations made under FAR 
15.403-1(c)(3).

PART 845--GOVERNMENT PROPERTY

Sec.
Subpart 845.4--Title to Government Property
845.402 Title to contractor-acquired property.
845.402-70 Policy.

    Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301-
1.304.

Subpart 845.4--Title to Government Property


845.402  Title to contractor-acquired property.


845.402-70  Policy.

    (a) For other than firm-fixed-price contracts, contractor-acquired 
property items not anticipated at time of contract award, or not 
otherwise specified for delivery on an existing line item, shall, by 
means of a contract modification, be specified for delivery to the 
Government on an added contract line item. The value of such 
contractor-acquired property item shall be recorded at the original 
purchase cost. Unless otherwise noted by the contractor at the time of 
delivery to the Government, the placed-in-service date shall be the 
date of acquisition or completed manufacture, if fabricated.
    (b) Following delivery and acceptance by the Government of 
contractor-acquired property items, if these items are to be retained 
by the contractor for continued use under a successor contract, these 
items become Government-furnished property (GFP). The items shall be 
added to the successor contract as GFP by contract modification.
    (c) Individual contractor-acquired property items should be 
recorded in the contractor's property management system at the 
contractor's original purchase cost.
    (d) All other contractor inventory that is excess to the needs of 
the contract shall be disposed of in accordance with FAR subpart 45.6.

[FR Doc. 2018-20183 Filed 9-17-18; 8:45 am]
BILLING CODE 8320-01-P