12FPC325Q0042 Combined Synopsis-Solicitation NM Vegetative Maintenance Svcs.docx

12FPC325Q0042

COMBINED SYNOPSIS/SOLICTITATION

For Vegetative Maintenance Services USDA – NRCS New Mexico Guadalupe County

PLEASE READ THIS NOTICE CAREFULLY AS IT CONSTITUTES THE ONLY NOTICE THAT WILL BE ISSUED

i. This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Federal Acquisition Regulation (FAR) Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation.

QUOTES ARE BEING REQUESTED AND A WRITTEN SOLICITATION WILL NOT BE ISSUED.

ii. The solicitation number 12FPC325Q0042 is being issued as a Request for Quotation (RFQ). The acquisition procedures at FAR Parts 12 & 13 are being utilized. The Government anticipates the award of one firm fixed-priced contract resulting from this solicitation. Award will be made to the responsible quoter whose quote responds to the terms of this RFQ and is the best value for the Government.

iii. This RFQ documents and incorporates provisions and clauses that are in effect through Federal Acquisition Circular (FAC) 2025-04 effective June 11, 2025.

iv. This solicitation is being conducted as a 100% small business set-aside. The North American Classification System Code (NAICS) is 115310, Support Activities for Forestry; the size standard is $11.5M. For more information on size standards visit http://www.sba.gov/size. Active SAM registration is required in order to be awarded this contract and must remain active throughout the period of performance.

v. Contract Line Item Numbers (CLINS): See Attachment 2, Quote Sheet.

vi. Description of Services: The Contractor shall furnish the necessary personnel, supplies, materials, equipment and incidentals necessary to provide vegetative maintenance services in accordance with the Statement of Work (SOW) attached to and hereby made a part of this solicitation.

vii. Date(s) and Place(s) of Delivery and Acceptance: The performance period is estimated to be September 1, 2025 – March 31, 2026. Place of performance will be Guadalupe County, New Mexico in accordance with attached SOW.

viii. The provision at 52.212-1, Instructions to Offerors-Commercial, applies to this acquisition. Offerors must read and follow the additional instructions contained within this solicitation to receive consideration.

52.212-1 Instructions to Quoters-Commercial Items (Sep 2023)

(a) North American Industry Classification System (NAICS) code and small business size standard. The NAICS code(s) and small business size standard(s) for this acquisition appear elsewhere in the solicitation. However, the small business size standard for a concern which submits a quote in its own name, but which proposes to furnish an item which it did not itself manufacture, is 500 employees.

(b) Submission of quotes. Submit signed and dated quotes to the office specified in this solicitation at or before the exact time specified in this solicitation. Quotes may be submitted on letterhead stationery, or as otherwise specified in the solicitation. As a minimum, offers must show—

(1) The solicitation number;

(2) The time specified in the solicitation for receipt of quotes;

(3) The name, address, and telephone number of the quoter;

(4) A technical description of the items being quoted in sufficient detail to evaluate compliance with the requirements in the solicitation. This may include product literature, or other documents, if necessary;

(5) Terms of any express warranty;

(6) Price and any discount terms;

(7) "Remit to" address, if different than mailing address;

(8) A completed copy of the representations and certifications at FAR 52.212-3 (see FAR 52.2123(b) for those representations and certifications that the quoter shall complete electronically);

(9) REMOVED;

(10) Past performance information, when included as an evaluation factor, to include recent and relevant contracts for the same or similar items and other references (including contract numbers, points of contact with telephone numbers and other relevant information); and

(11) REMOVED.

(c) REMOVED.

(d) Product samples. When required by the solicitation, product samples shall be submitted at or prior to the time specified for receipt of quotes. Unless otherwise specified in this solicitation, these samples shall be submitted at no expense to the Government, and returned at the sender’s request and expense, unless they are destroyed during pre-award testing.

(e) REMOVED;

(f) Issuance of Purchase Order. Your quotation should contain your best technical and price terms. The Contracting Officer may reject any or all quotes. The Contracting Officer may issue a purchase order to other than the quoter with the lowest priced quotation. After the evaluation of quotes, the Contracting Officer may negotiate final terms with one or more quoters of the Government’s choice before issuing any purchase order. The Contracting Officer will not negotiate with any quoters other than those of the Government’s choice and will not use the formal source selection procedures described in FAR Part 15.

(g) Contract award (not applicable to Invitation for Bids). The Government intends to evaluate quotes and award a contract without discussions with quoters. Therefore, the quoter’s initial quote should contain the quoter’s best terms from a price and technical standpoint. The Government may reject any or all quotes if such action is in the public interest as well as accept other than the lowest offer.

(h) REMOVED;

(i) Availability of requirements documents cited in the solicitation.

(1) (i) The GSA Index of Federal Specifications, Standards and Commercial Item Descriptions, FPMR Part 101-29, and copies of specifications, standards, and commercial item descriptions cited in this solicitation may be obtained for a fee by submitting a request to- GSA Federal Supply Service Specifications Section Suite 8100 470 East L’Enfant Plaza, SW Washington, DC 20407 Telephone (202) 619-8925 Facsimile (202) 619-8978.

(ii) If the General Services Administration, Department of Agriculture, or Department of Veterans Affairs issued this solicitation, a single copy of specifications, standards, and commercial item descriptions cited in this solicitation may be obtained free of charge by submitting a request to the addressee in paragraph (i)(1)(i) of this provision. Additional copies will be issued for a fee.

(2) Most unclassified Defense specifications and standards may be downloaded from the following ASSIST websites:

a. ASSIST ( https://assist.dla.mil/online/start/).

b. Quick Search ( http://quicksearch.dla.mil/).

(3) Documents not available from ASSIST may be ordered from the Department of Defense Single Stock Point (DoDSSP) by-

(i) Using the ASSIST Shopping Wizard (https://assist.dla.mil/wizard/index.cfm);

(ii) Phoning the DoDSSP Customer Service Desk (215) 697-2179, Mon-Fri, 0730 to 1600 EST; or

(iii) Ordering from DoDSSP, Building 4, Section D, 700 Robbins Avenue, Philadelphia, PA 19111-5094, Telephone (215) 697-2667/2179, Facsimile (215) 697-1462.

(4) Nongovernment (voluntary) standards must be obtained from the organization responsible for their preparation, publication, or maintenance.

(j) Unique entity identifier.(Applies to all offers that exceed the micro-purchase threshold, and offers at or below the micro-purchase threshold if the solicitation requires the Contractor to be registered in the System for Award Management (SAM).) The Offeror shall enter, in the block with its name and address on the cover page of its offer, the annotation "Unique Entity Identifier" followed by the unique entity identifier that identifies the Offeror's name and address. The Offeror also shall enter its Electronic Funds Transfer (EFT) indicator, if applicable. The EFT indicator is a four-character suffix to the unique entity identifier. The suffix is assigned at the discretion of the Offeror to establish additional SAM records for identifying alternative EFT accounts (see FAR subpart 32.11) for the same entity. If the Offeror does not have a unique entity identifier, it should contact the entity designated at www.sam.gov for unique entity identifier establishment directly to obtain one. The Offeror should indicate that it is an offeror for a Government contract when contacting the entity designated at www.sam.gov for establishing the unique entity identifier. (k) [Reserved]

(l) REMOVED.

ix. 52.212-2, Evaluation - Commercial Products and Commercial Services (Nov 2021)

(a) The Government will award one (1) Firm Fixed Price contract resulting from this solicitation. Award will be made to the Lowest Price Technically Acceptable (LPTA) quote. The technical factors consist of three (3) factors. The evaluation team will give the technical factor an “Acceptable” or “Unacceptable” determination before moving onto the price analysis for those with an “Acceptable” technical determination. Once the evaluation team reaches its Lowest Price Technically Acceptable quote, the evaluation will stop and no other quotes will be considered for award. The following shall be used to evaluate quotes:

i. Technical Factor 1: Personnel Qualifications/Technical Capability: Technical capability includes qualifications, experience, capability, and strategy for executing the work.

ii. Technical Factor 2: Compliance/Capacity, Management Capability

iii. Technical Factor 3: Past Experience

iv. Factor 4: Price Pricing that is unrealistically low may be considered an indication that an offeror does not possess adequate understanding of the requirement or the requisite technical capability to successfully perform the work.

(b) A written notice of award or acceptance of a quote, mailed or otherwise furnished to the successful quoter within the time for acceptance specified in the quote, shall result in a binding contract without further action by either party. Before the quoter’s specified expiration time, the Government may accept a quote (or part of a quote) unless a written notice of withdrawal is received before award.

The following factors shall be used to evaluate offers:

TECHNICAL FACTOR 1 – Personnel Qualifications/Technical Capability Instructions to Quoter – Quoters will illustrate that project personnel, collectively, have the ability, through application of professional knowledge and experience, to perform vegetative maintenance services (preferably on Federal easements lands in New Mexico and/or neighboring states) as depicted on the attached SOW. Offerors should demonstrate they have competent supervisory and skilled personnel to satisfactorily complete the work as described in the attached SOW. Include documentation that demonstrates that project personnel are knowledgeable and experienced regarding plant identification; have the knowledge and licensing for flying aircraft if quoting on aerial spraying; have the knowledge and licensing for herbicide application; have knowledge of laws regarding handling of protected species; and have the necessary equipment needed to complete the services required. In addition, quoter must provide documentation regarding safety measures and plans to avoid injuries and damage to property.

Evaluation Criteria - To be considered qualified technically the quoter must demonstrate a clear understanding of all requirements and demonstrate that as a contractor they have technical expertise in conducting vegetative maintenance services (preferably on Federal easement lands in New Mexico and/or neighboring states) as described in the attached SOW. Offerors should demonstrate they have competent supervisory and skilled personnel to satisfactorily complete the work as described in the attached SOW. Include documentation that demonstrates that project personnel are knowledgeable and experienced regarding plant identification; have the knowledge and licensing for flying aircraft if quoting on aerial spraying; have the knowledge and licensing for pesticide application; have knowledge of laws regarding handling of protected species. Quoter must provide documentation of the necessary equipment and personnel to furnish the services in the volume required under this contract. Quoter must also provide documentation regarding safety measures and plans to avoid injuries and damage to property.

TECHNICAL FACTOR 2 – Compliance/ Capacity, Management Capability Instructions to Quoter: The quoter shall submit a well-defined general plan of work to successfully accomplish the work described in the attached SOW. The general plan of work shall include a strategy for managing all elements of the work, including an organizational outline; the relation of the contract to the overall company structure; and a strategy for adhering to project schedules. The quoter shall include descriptions of similar vegetative maintenance experiences (preferably on Federal Easement lands in New Mexico and/or neighboring states) in the past 3 years. The quoter shall describe how they currently have the capacity and how they plan to meet production deadlines and schedules of the contract.

The quoter shall also include a description of their quality assurance and quality control procedures. A description should be provided that demonstrates the quoter’s understanding of logistics for conducting vegetative maintenance services (preferably on Federal Easement lands in New Mexico and/or neighboring states) and any/all field equipment required to perform the vegetative maintenance services and meet production goals as depicted in the attached SOW.

Additionally, the quoter shall describe and support, with examples, the quality and timeliness of performance under previous contracts. Include a minimum of 3 references with the following information: (a) Company/Government Name, (b) complete address, (c) point of contact, (d) telephone/email address, (e) contract number, (f) contract type, (g) contract amount at award, (h) contract amount at completion, (i) brief description of work provided, (j) any special problems encountered and actions taken to adapt to customer’s needs.

Evaluation Criteria: Quoters will be evaluated on the ability to comply with the terms and conditions of the contract and experience in conducting vegetative maintenance services (preferably on Federal easement lands in New Mexico and/or neighboring states) in accordance with the attached SOW. The quoter will also be evaluated in their ability to meet schedules and deadlines relative to production quantity, and they will be evaluated on their ability to provide the services required through effective quality assurance and quality control protocols. Areas of consideration will include: having competent supervisory and skilled personnel with previous experience working on similar projects (preferably on Federal Easement lands in New Mexico and/or neighboring states), managerial expertise required to meet the contract requirements, a demonstrated understanding of logistics for vegetative maintenance services (preferably on Federal Government easement lands in in New Mexico and/or neighboring states) and any/all necessary equipment as depicted on the attached SOW. The quoter will also be evaluated on past performance and the quoter’s demonstrated commitment to customer satisfaction and timely delivery of quality services at fair and reasonable prices.

TECHNICAL FACTOR 3 – Past Experience An evaluation panel will conduct a past experience evaluation that examines a quoter’s recent and relevant past experience record to determine a contractor’s relevant history with vegetative maintenance services (preferably on Federal easement lands in New Mexico and/or neighboring states). The technical evaluation will consider the currency and relevance of the information, source of the information, and context of the data. The purpose of this technical factor evaluation is to allow the Government to assess the quoter’s ability to perform the effort described in this solicitation, based on the quoter’s historical experience.

Instructions to Quoter: Provide a list of no more than three (3) of the most relevant contracts performed for vegetative maintenance services (preferably on Federal easement lands in New Mexico and/or neighboring states) within the last five (5) years. Only references for relevant and recent past efforts/contracts are desired. The Government will evaluate relevant experience relative to the requirements of this RFQ, and the attached SOW. The Government will use information submitted by the quoter to independently verify Contractor Responsibility. The Government may review records, such as CPARS, FAPIIS, verifying references, etc. Items that will be considered are general trends in the quoters experience and performance, the number and severity of problems, the effectiveness of any corrective actions taken, and the offeror's overall performance record. Relevant experience includes technical expertise in vegetative maintenance services (preferably on Federal easement lands). The past experience should include the following information: (a) Company/Government Name, (b) complete address, (c) point of contact, (d) telephone/fax number, (e) contract number, (f) contract type, (g) contract amount at award, (h) contract amount at completion, (it) brief description of work provided.

Evaluation Criteria: The offeror will be evaluated by the following:

(a) Recency: The ability to prove experience within the last five (5) years.

(b) Relevancy: The ability to prove experience of relevant work, relevant to this requirement. Areas of consideration will include having qualified personnel with previous experience working on similar projects within the area (preferably on Federal easement lands in New Mexico and/or neighboring states) in which vegetative maintenance services are required per the SOW.

FACTOR 4 - Price Instructions to Quoter: Quoter should complete Attachment 2, Pricing Sheet.

Evaluation Criteria: To evaluate quotes for award purposes, the Government will apply the quoter’s proposed fixed-prices/rates to the estimated quantities included in the solicitation. These prices will be evaluated to determine reasonableness of the price. A comparison of the proposed prices, government estimate, and/or market values will be used. Quoters are put on notice that any quotes that are unrealistic in terms of technical commitment or unrealistically low in price, will be deemed reflective of an inherent lack of technical competence or indicative of failure to comprehend the complexity of contract requirements and may be grounds for rejection of the quote.

x. Quoters are required to complete the provision at 52.212-3, Offeror Representations and Certifications-Commercial Items. This must be completed at SAM.gov and the registration in an “active” status and be designated as a small business.

xi. The clause at 52.212-4, Contract Terms and Conditions-Commercial Products and Commercial Services, applies to this acquisition and addenda are not attached.

xii. The clause at 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Products and Commercial Services, applies to this acquisition and the following additional FAR clauses cited in the clause are applicable to this acquisition:

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in the contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial products and commercial services:

52.204-10 Reporting Executive Compensation and First-Tier Subcontract Awards (JUN 2020) (Pub. L. 109-282) ( 31 U.S.C. 6101 note) 52.209-6 Protecting the Government's Interest When Subcontracting With Contractors Debarred, Suspended, Proposed for Debarment, or Voluntarily Excluded. (Jan 2025) ( 31 U.S.C. 6101 note) 52.219-6 Notice of Total Small Business Set-Aside (Nov 2020) 52.219-28 Postaward Small Business Program Rerepresentation (JAN 2025) (15 U.S.C. 632(a)(2))52.222-3 Convict Labor (JAN 2025) 52.222-3, Convict Labor (JUN 2003) (E.O.11755) 52.222-21 Prohibition of Segregated Facilities (April 2015) 52.222-26 Equal Opportunity (Sept 2016) 52.222-36 Equal Opportunity for Workers with Disabilities (Jun 2020) 52.222-50 Combatting Trafficking in Persons (Nov 2021) 52.225-13 Restrictions on Certain Foreign Purchases (FEB 2021) (E.O.’s, proclamations, and statutes administered by the Office of Foreign Assets Control of the Department of the Treasury).

52.226-8 Encouraging Contractor Policies to Ban Text Messaging While Driving (May 2024) 52.232-33 Payment by Electronic Funds Transfer – System for Award Management (Oct 2018)

(c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to commercial services, that the Contracting Officer has indicated as being incorporated in the contract by reference to implement provisions of law or Executive Orders applicable to acquisitions of commercial products and commercial services:

52.222-41 Service Contract Labor Standards (Aug 2018) 52.222-42 Statement of Equivalent Rates for Federal Hires (May 2014) 52.222-55 Minimum Wages for Contractor Workers Under Executive Order 13685 (Jan 2022) 52.222-62 Paid Sick Leave Under Executive Order 13706 (Jan 2022)

xiii. Additional contract requirement(s) or terms and conditions determined by the Contracting Officer to be necessary for this acquisition and consistent with customary commercial practices:

52.204-21 Basic Safeguarding of Covered Contractor Information Systems. (Nov 2021)

(a) Definitions. As used in this clause— Covered contractor information system means an information system that is owned or operated by a contractor that processes, stores, or transmits Federal contract information .

Federal contract information means information , not intended for public release, that is provided by or generated for the Government under a contract to develop or deliver a product or service to the Government, but not including information provided by the Government to the public (such as on public websites) or simple transactional information , such as necessary to process payments.

Information means any communication or representation of knowledge such as facts, data , or opinions, in any medium or form, including textual, numerical, graphic, cartographic, narrative, or audiovisual (Committee on National Security Systems Instruction (CNSSI) 4009).

Information system means a discrete set of information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information ( 44 U.S.C. 3502). Safeguarding means measures or controls that are prescribed to protect information systems .

(b) Safeguarding requirements and procedures.

(1) The Contractor shall apply the following basic safeguarding requirements and procedures to protect covered contractor information systems . Requirements and procedures for basic safeguarding of covered contractor information systems shall include, at a minimum, the following security controls:

(i) Limit information system access to authorized users, processes acting on behalf of authorized users, or devices (including other information systems ).

(ii) Limit information system access to the types of transactions and functions that authorized users are permitted to execute.

(iii) Verify and control/limit connections to and use of external information systems .

(iv) Control information posted or processed on publicly accessible information systems .

(v) Identify information system users, processes acting on behalf of users, or devices.

(vi) Authenticate (or verify) the identities of those users, processes, or devices, as a prerequisite to allowing access to organizational information systems.

(vii) Sanitize or destroy information system media containing Federal Contract Information before disposal or release for reuse.

(viii) Limit physical access to organizational information systems , equipment , and the respective operating environments to authorized individuals .

(ix) Escort visitors and monitor visitor activity; maintain audit logs of physical access; and control and manage physical access devices.

(x) Monitor, control, and protect organizational communications (i.e., information transmitted or received by organizational information systems ) at the external boundaries and key internal boundaries of the information systems .

(xi) Implement subnetworks for publicly accessible system components that are physically or logically separated from internal networks.

(xii) Identify, report, and correct information and information system flaws in a timely manner.

(xiii) Provide protection from malicious code at appropriate locations within organizational information systems .

(xiv) Update malicious code protection mechanisms when new releases are available.

(xv) Perform periodic scans of the information system and real-time scans of files from external sources as files are downloaded, opened, or executed.

(2) Other requirements. This clause does not relieve the Contractor of any other specific safeguarding requirements specified by Federal agencies and departments relating to covered contractor information systems generally or other Federal safeguarding requirements for controlled unclassified information (CUI) as established by Executive Order 13556.

(c) Subcontracts . The Contractor shall include the substance of this clause, including this paragraph (c), in subcontracts under this contract (including subcontracts for the acquisition of commercial products or commercial services , other than commercially available off-the-shelf items), in which the subcontractor may have Federal contract information residing in or transiting through its information system .

52.216-1 Type of Contract (Apr 1984) The Government contemplates award of one firm fixed-priced contract resulting from this solicitation.

52.222-42 Statement of Equivalent Rates for Federal Hires (May 2014) In compliance with the Service Contract Labor Standards statute and the regulations of the Secretary of Labor (29 CFR part 4), this clause identifies the classes of service employees expected to be employed under the contract and states the wages and fringe benefits payable to each if they were employed by the contracting agency subject to the provisions of 5 U.S.C. 5341 or 5332.

This Statement is for Information Only:

Service Contract Labor Standards Wage Determinations The following Department of Labor wage determinations are incorporated into this contract. Wage determinations may be found at: https://beta.sam.gov/search?index=wd Wage Determinations 2015-5453 Rev. 27, dated 05/20/2025

52.245-1 Government Property (SEP 2021) (a)Definitions. As used in this clause- Cannibalize means to remove parts from Government property for use or for installation on other Government property.

Contractor-acquired property means property acquired, fabricated, or otherwise provided by the Contractor for performing a contract, and to which the Government has title.

Contractor inventory means- (1)Any property acquired by and in the possession of a Contractor or subcontractor under a contract for which title is vested in the Government and which exceeds the amounts needed to complete full performance under the entire contract;

(2)Any property that the Government is obligated or has the option to take over under any type of contract, e.g., as a result either of any changes in the specifications or plans thereunder or of the termination of the contract (or subcontract thereunder), before completion of the work, for the convenience or at the option of the Government; and (3)Government-furnished property that exceeds the amounts needed to complete full performance under the entire contract.

Contractor’s managerial personnel means the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of- (1)All or substantially all of the Contractor’s business;

(2)All or substantially all of the Contractor’s operation at any one plant or separate location; or (3)A separate and complete major industrial operation.

Demilitarization means rendering a product unusable for, and not restorable to, the purpose for which it was designed or is customarily used.

Discrepancies incident to shipment means any differences (e.g., count or condition) between the items documented to have been shipped and items actually received.

Equipment means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.

Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Government property means all property owned or leased by the Government. Government property includes both Government- furnished and Contractor-acquired property. Government property includes material, equipment, special tooling, special test equipment, and real property. Government property does not include intellectual property and software.

Loss of Government property means unintended, unforeseen or accidental loss, damage or destruction to Government property that reduces the Government’s expected economic benefits of the property. Loss of Government property does not include purposeful destructive testing, obsolescence, normal wear and tear or manufacturing defects. Loss of Government property includes, but is not limited to- (1)Items that cannot be found after a reasonable search;

(2)Theft;

(3)Damage resulting in unexpected harm to property requiring repair to restore the item to usable condition; or (4)Destruction resulting from incidents that render the item useless for its intended purpose or beyond economical repair.

Material means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end item. Material does not include equipment, special tooling, special test equipment or real property.

Non-severable means property that cannot be removed after construction or installation without substantial loss of value or damage to the installed property or to the premises where installed.

Precious metals means silver, gold, platinum, palladium, iridium, osmium, rhodium, and ruthenium.

Production scrap means unusable material resulting from production, engineering, operations and maintenance, repair, and research and development contract activities. Production scrap may have value when re-melted or reprocessed, e.g., textile and metal clippings, borings, and faulty castings and forgings.

Property means all tangible property, both real and personal.

Property Administrator means an authorized representative of the Contracting Officer appointed in accordance with agency procedures, responsible for administering the contract requirements and obligations relating to Government property in the possession of a Contractor.

Property records means the records created and maintained by the contractor in support of its stewardship responsibilities for the management of Government property.

Provide means to furnish, as in Government-furnished property, or to acquire, as in contractor-acquired property.

Real property See Federal Management Regulation 102-71.20 (41 CFR 102-71.20).

Sensitive property means property potentially dangerous to the public safety or security if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, and accountability. Examples include weapons, ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals.

Unit acquisition cost means- (1)For Government-furnished property, the dollar value assigned by the Government and identified in the contract; and (2)For contractor-acquired property, the cost derived from the Contractor’s records that reflect consistently applied generally accepted accounting principles.

(b)Property management.

(1)The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) Government property in its possession. The system shall be adequate to satisfy the requirements of this clause. In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective and efficient control of Government property. The Contractor shall disclose any significant changes to its property management system to the Property Administrator prior to implementation of the changes. The Contractor may employ customary commercial practices, voluntary consensus standards, or industry-leading practices and standards that provide effective and efficient Government property management that are necessary and appropriate for the performance of this contract (except where inconsistent with law or regulation).

(2)The Contractor’s responsibility extends from the initial acquisition and receipt of property, through stewardship, custody, and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, sale (as surplus property), or other disposition, or via a completed investigation, evaluation, and final determination for lost property. This requirement applies to all Government property under the Contractor’s accountability, stewardship, possession or control, including its vendors or subcontractors (see paragraph (f)(1)(v) of this clause).

(3)The Contractor shall include the requirements of this clause in all subcontracts under which Government property is acquired or furnished for subcontract performance.

(4)The Contractor shall establish and maintain procedures necessary to assess its property management system effectiveness and shall perform periodic internal reviews, surveillances, self assessments, or audits. Significant findings or results of such reviews and audits pertaining to Government property shall be made available to the Property Administrator.

(c)Use of Government property.

(1)The Contractor shall use Government property, either furnished or acquired under this contract, only for performing this contract, unless otherwise provided for in this contract or approved by the Contracting Officer.

(2)Modifications or alterations of Government property are prohibited, unless they are- (i)Reasonable and necessary due to the scope of work under this contract or its terms and conditions;

(ii)Required for normal maintenance; or (iii)Otherwise authorized by the Contracting Officer.

(3)The Contractor shall not cannibalize Government property unless otherwise provided for in this contract or approved by the Contracting Officer.

(d)Government-furnished property.

(1)The Government shall deliver to the Contractor the Government-furnished property described in this contract. The Government shall furnish related data and information needed for the intended use of the property. The warranties of suitability of use and timely delivery of Government-furnished property do not apply to property acquired or fabricated by the Contractor as contractor-acquired property and subsequently transferred to another contract with this Contractor.

(2)The delivery and/or performance dates specified in this contract are based upon the expectation that the Government-furnished property will be suitable for contract performance and will be delivered to the Contractor by the dates stated in the contract.

(i)If the property is not delivered to the Contractor by the dates stated in the contract, the Contracting Officer shall, upon the Contractor’s timely written request, consider an equitable adjustment to the contract.

(ii)In the event property is received by the Contractor, or for Government-furnished property after receipt and installation, in a condition not suitable for its intended use, the Contracting Officer shall, upon the Contractor’s timely written request, advise the Contractor on a course of action to remedy the problem. Such action may include repairing, replacing, modifying, returning, or otherwise disposing of the property at the Government’s expense. Upon completion of the required action(s), the Contracting Officer shall consider an equitable adjustment to the contract (see also paragraph (f)(1)(ii)(A) of this clause).

(iii)The Government may, at its option, furnish property in an "as-is" condition. The Contractor will be given the opportunity to inspect such property prior to the property being provided. In such cases, the Government makes no warranty with respect to the serviceability and/or suitability of the property for contract performance. Any repairs, replacement, and/or refurbishment shall be at the Contractor’s expense.

(3) (i)The Contracting Officer may by written notice, at any time- (A)Increase or decrease the amount of Government-furnished property under this contract;

(B)Substitute other Government-furnished property for the property previously furnished, to be furnished, or to be acquired by the Contractor for the Government under this contract; or (C)Withdraw authority to use property.

(ii)Upon completion of any action(s) under paragraph (d)(3)(i) of this clause, and the Contractor’s timely written request, the Contracting Officer shall consider an equitable adjustment to the contract.

(e)Title to Government property.

(1)All Government-furnished property and all property acquired by the Contractor, title to which vests in the Government under this paragraph (collectively referred to as "Government property"), is subject to the provisions of this clause. The Government shall retain title to all Government-furnished property. Title to Government property shall not be affected by its incorporation into or attachment to any property not owned by the Government, nor shall Government property become a fixture or lose its identity as personal property by being attached to any real property.

(2)Title vests in the Government for all property acquired or fabricated by the Contractor in accordance with the financing provisions or other specific requirements for passage of title in the contract. Under fixed price type contracts, in the absence of financing provisions or other specific requirements for passage of title in the contract, the Contractor retains title to all property acquired by the Contractor for use on the contract, except for property identified as a deliverable end item. If a deliverable item is to be retained by the Contractor for use after inspection and acceptance by the Government, it shall be made accountable to the contract through a contract modification listing the item as Government-furnished property.

(3)Title under Cost-Reimbursement or Time-and-Material Contracts or Cost-Reimbursable line items under Fixed-Price contracts.

(i)Title to all property purchased by the Contractor for which the Contractor is entitled to be reimbursed as a direct item of cost under this contract shall pass to and vest in the Government upon the vendor’s delivery of such property.

(ii)Title to all other property, the cost of which is reimbursable to the Contractor, shall pass to and vest in the Government upon- (A)Issuance of the property for use in contract performance;

(B)Commencement of processing of the property for use in contract performance; or (C)Reimbursement of the cost of the property by the Government, whichever occurs first.

(f)Contractor plans and systems.

(1)Contractors shall establish and implement property management plans, systems, and procedures at the contract, program, site or entity level to enable the following outcomes:

(i)Acquisition of Property. The Contractor shall document that all property was acquired consistent with its engineering, production planning, and property control operations.

(ii)Receipt of Government Property. The Contractor shall receive Government property and document the receipt, record the information necessary to meet the record requirements of paragraph (f)(1)(iii)(A)(1) through (5) of this clause, identify as Government owned in a manner appropriate to the type of property (e.g., stamp, tag, mark, or other identification), and manage any discrepancies incident to shipment.

(A)Government-furnished property. The Contractor shall furnish a written statement to the Property Administrator containing all relevant facts, such as cause or condition and a recommended course(s) of action, if overages, shortages, or damages and/or other discrepancies are discovered upon receipt of Government-furnished property.

(B)Contractor-acquired property. The Contractor shall take all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered upon receipt, in shipment of Contractor-acquired property from a vendor or supplier, so as to ensure the proper allocability and allowability of associated costs.

(iii)Records of Government property. The Contractor shall create and maintain records of all Government property accountable to the contract, including Government-furnished and Contractor-acquired property.

(A)Property records shall enable a complete, current, auditable record of all transactions and shall, unless otherwise approved by the Property Administrator, contain the following:

(1)The name, part number and description, National Stock Number (if needed for additional item identification tracking and/or disposition), and other data elements as necessary and required in accordance with the terms and conditions of the contract.

(2)Quantity received (or fabricated), issued, and balance-on-hand.

(3)Unit acquisition cost.

(4)Unique-item identifier or equivalent (if available and necessary for individual item tracking).

(5)Unit of measure.

(6)Accountable contract number or equivalent code designation.

(7)Location.

(8)Disposition.

(9)Posting reference and date of transaction.

(10)Date placed in service (if required in accordance with the terms and conditions of the contract).

(B)Use of a Receipt and Issue System for Government Material. When approved by the Property Administrator, the Contractor may maintain, in lieu of formal property records, a file of appropriately cross-referenced documents evidencing receipt, issue, and use of material that is issued for immediate consumption.

(iv)Physical inventory. The Contractor shall periodically perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination. The Property Administrator may waive this final inventory requirement, depending on the circumstances (e.g., overall reliability of the Contractor’s system or the property is to be transferred to a follow-on contract).

(v)Subcontractor control.

(A)The Contractor shall award subcontracts that clearly identify items to be provided and the extent of any restrictions or limitations on their use. The Contractor shall ensure appropriate flow down of contract terms and conditions (e.g., extent of liability for loss of Government property.

(B)The Contractor shall assure its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the subcontractor’s property management system.

(vi)Reports. The Contractor shall have a process to create and provide reports of discrepancies, loss of Government property, physical inventory results, audits and self-assessments, corrective actions, and other property-related reports as directed by the Contracting Officer.

(vii)Relief of stewardship responsibility and liability. The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations.

(A)This process shall include the corrective actions necessary to prevent recurrence.

(B)Unless otherwise directed by the Property Administrator, the Contractor shall investigate and report to the Government all incidents of property loss as soon as the facts become known. Such reports shall, at a minimum, contain the following information:

(1)Date of incident (if known).

(2)The data elements required under (f)(1)(iii)(A).

(3)Quantity.

(4)Accountable contract number.

(5)A statement indicating current or future need.

(6)Unit acquisition cost, or if applicable, estimated sales proceeds, estimated repair or replacement costs.

(7)All known interests in commingled material of which includes Government material.

(8)Cause and corrective action taken or to be taken to prevent recurrence.

(9)A statement that the Government will receive compensation covering the loss of Government property, in the event the Contractor was or will be reimbursed or compensated.

(10)Copies of all supporting documentation.

(11)Last known location.

(12)A statement that the property did or did not contain sensitive, export controlled, hazardous, or toxic material, and that the appropriate agencies and authorities were notified.

(C)Unless the contract provides otherwise, the Contractor shall be relieved of stewardship responsibility and liability for property when- (1)Such property is consumed or expended, reasonably and properly, or otherwise accounted for, in the performance of the contract, including reasonable inventory adjustments of material as determined by the Property Administrator;

(2)Property Administrator grants relief of responsibility and liability for loss of Government property;

(3)Property is delivered or shipped from the Contractor's plant, under Government instructions, except when shipment is to a subcontractor or other location of the Contractor; or (4)Property is disposed of in accordance with paragraphs (j) and (k) of this clause.

(viii)Utilizing Government property.

(A)The Contractor shall utilize, consume, move, and store Government Property only as authorized under this contract. The Contractor shall promptly disclose and report Government property in its possession that is excess to contract performance.

(B)Unless otherwise authorized in this contract or by the Property Administrator the Contractor shall not commingle Government material with material not owned by the Government.

(ix)Maintenance. The Contractor shall properly maintain Government property. The Contractor’s maintenance program shall enable the identification, disclosure, and performance of normal and routine preventative maintenance and repair. The Contractor shall disclose and report to the Property Administrator the need for replacement and/or capital rehabilitation.

(x)Property closeout. The Contractor shall promptly perform and report to the Property Administrator contract property closeout, to include reporting, investigating and securing closure of all loss of Government property cases; physically inventorying all property upon termination or completion of this contract; and disposing of items at the time they are determined to be excess to contractual needs.

(2)The Contractor shall establish and maintain Government accounting source data, as may be required by this contract, particularly in the areas of recognition of acquisitions, loss of Government property, and disposition of material and equipment.

(g)Systems analysis.

(1)The Government shall have access to the Contractor’s premises and all Government property, at reasonable times, for the purposes of reviewing, inspecting and evaluating the Contractor’s property management plan(s), systems, procedures, records, and supporting documentation that pertains to Government property. This access includes all site locations and, with the Contractor’s consent, all subcontractor premises.

(2)Records of Government property shall be readily available to authorized Government personnel and shall be appropriately safeguarded.

(3)Should it be determined by the Government that the Contractor’s (or subcontractor’s) property management practices are inadequate or not acceptable for the effective management and control of Government property under this contract, or present an undue risk to the Government, the Contractor shall prepare a corrective action plan when requested by the Property Administrator and take all necessary corrective actions as specified by the schedule within the corrective action plan.

(h)Contractor Liability for Government Property.

(1)Unless otherwise provided for in the contract, the Contractor shall not be liable for loss of Government property furnished or acquired under this contract, except when any one of the following applies- (i)The risk is covered by insurance or the Contractor is otherwise reimbursed (to the extent of such insurance or reimbursement). The allowability of insurance costs shall be determined in accordance with 31.205-19.

(ii)Loss of Government property that is the result of willful misconduct or lack of good faith on the part of the Contractor’s managerial personnel.

(iii)The Contracting Officer has, in writing, revoked the Government’s assumption of risk for loss of Government property due to a determination under paragraph (g) of this clause that the Contractor’s property management practices are inadequate, and/or present an undue risk to the Government, and the Contractor failed to take timely corrective action.