Amendment__1_(Mod_Version).pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

30-105-04EXCEPTION TO SF 30

APPROVED BY OIRM 11-84

STANDARD FORM 30 (Rev. 10-83) Prescribed by GSA

FAR (48 CFR) 53.243

The purpose of this amendment is as follow s:

A) Incorporate changes from the Q&A (Attachment #2).

B) Add a Price Exhibit (Attachment #3).

C) Extend the time necessary to submit a proposal to 9 Sep 2015 at 2:30 PM(JST).

D) Alter the CLIN structure as annotated in the summary of changes.

E) Incorporate required clauses and provisions as annotated in the summary of changes.

F) Revise Performance Work Statement to Performance Work Statement, Revision #1, dated 27 Aug 2015 (Attachment #1).

Please see summary of changes for additional information.

1. CONTRACT ID CODE PAGE OF PAGES

J 1 25

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16C. DATE SIGNED

BY 27-Aug-2015

16B. UNITED STATES OF AMERICA15C. DATE SIGNED15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip Code) X FA5270-15-T-0084

X 9B. DATED (SEE ITEM 11)

17-Jul-2015

10B. DATED (SEE ITEM 13)

9A. AMENDMENT OF SOLICITATION NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offer X is extended, is not extended.

Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:

(a) By completing Items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

10A. MOD. OF CONTRACT/ORDER NO.

2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO.(If applicable)

6. ISSUED BY

3. EFFECTIVE DATE

17-Aug-2015

CODE

18 CONS/LGCA

POC: MARCUS TUCKER

UNIT 5199, BLDG 99 KADENA AB

APO AP 96368

FA5270 7. ADMINISTERED BY (If other than item 6)

4. REQUISITION/PURCHASE REQ. NO.

CODE

See Item 6

FACILITY CODECODE

EMAIL:TEL:

FA5270-15-T-0084

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

SOLICITATION/CONTRACT FORM

The required response date/time has changed from 17-Aug-2015 05:00 PM to 09-Sep-

2015 02:30 PM.

SUPPLIES OR SERVICES AND PRICES

Global Changes

CLIN 0001 -- CLIN 2001

The signal code A has been added.

The FSC code 4310 has been added.

The PROG code S10 has been added.

The WSC Equipment code 000 has been added.

The SIC code 3563 has been added.

The MDAP/MAIS Code 000 has been added.

The NAICS code 333912 has been added.

CLIN 0001

The CLIN description has changed from 18 CES Base Year Compressor Maintainace to Quarterly Inspections & Minor Repairs.

The CLIN extended description has changed from 18 CES/CEF: Quarterly Compressor Maintenance for three (3) Compressors, including estimated 12 Service Calls, and Reimbursable Parts 18 CES/CEF: Quarterly Compressor Maintenance for three (3) Compressors, including estimated 12 Service Calls, and Reimbursable Parts IAW PWS and Price Exhibit. Performance Period: 1 Oct 2015 to 30 Sep 2016 (FY16 base year) to Quarterly Compressor Maintenance (to include Inspections & Minor Repairs) for three Compressors. Performance Period: 1 Oct 15 - 30 Sep 16 (FY16 Base Year).

The pricing detail quantity has decreased by 8.00 from 12.00 to 4.00.

The unit of issue has changed from Months to Each.

CLIN 1001

The CLIN description has changed from Option year 1 to Quarterly Inspections & Minor Repairs.

The CLIN extended description has changed from 18 CES/CEF: Quarterly Compressor Maintenance for three (3) Compressors, including estimated 12 Service Calls, and Reimbursable Parts 18 CES/CEF: Quarterly Compressor Maintenance for three (3) Compressors, including estimated 12 Service Calls, and Reimbursable Parts IAW PWS and Price Exhibit. Performance Period: 1 Oct 2016 to 30 Sep 2017 (FY17 option year 1) to Quarterly Compressor Maintenance (to include Inspections & Minor Repairs) for three Compressors. Performance Period: 1 Oct 16 - 30 Sep 17 (FY17 Option Year #1).

The pricing detail quantity has decreased by 8.00 from 12.00 to 4.00.

CLIN 2001

This CLIN has been renumbered to CLIN 2002.

The CLIN description has changed from Option Year 2 to Service Calls.

The CLIN extended description has changed from 18 CES/CEF: Quarterly Compressor Maintenance for three (3) Compressors, including estimated 12 Service Calls, and Reimbursable Parts 18 CES/CEF: Quarterly Compressor Maintenance for three (3) Compressors, including estimated 12 Service Calls, and Reimbursable Parts IAW PWS and Price Exhibit. Performance Period: 1 Oct 2017 to 30 Sep 2018 (FY17 option year 2) to This CLIN is for Service Calls IAW PWS para 2.7.

Performance Period: 1 Oct 17 - 30 Sep 18 (FY18 Option Year #2).

The pricing detail quantity has decreased by 6.00 from 12.00 to 6.00.

CLIN 0002 is added as follows:

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0002 6 Each Service Calls

FFP

This CLIN is for Service Calls IAW PWS para 2.7.

Performance Period: 1 Oct 15 - 30 Sep 16 (FY16 Base Year) FOB: Destination

SIGNAL CODE: A

NET AMT

CLIN 0003 is added as follows:

0003 1 Lot Repairs & Reimbursable Parts

FFP

This CLIN is for Reimbursable Parts IAW PWS para 8.2.

Performance Period: 1 Oct 15 - 30 Sep 16 (FY16 Base Year)

CLIN 1002 is added as follows:

1002 6 Each OPTION Service Calls

FFP

This CLIN is for Service Calls IAW PWS para 2.7.

Performance Period: 1 Oct 16 - 30 Sep 17 (FY17 Option Year #1)

CLIN 1003 is added as follows:

1003 1 Lot OPTION Repairs & Reimbursable Parts

FFP

This CLIN is for Reimbursable Parts IAW PWS para 8.2.

Performance Period: 1 Oct 16 - 30 Sep 17 (FY17 Option Year #1)

CLIN 2001 is added as follows:

2001 4 Each OPTION Quarterly Inspections & Minor Repairs

FFP

Quarterly Compressor Maintenance (to include Inspections & Minor Repairs) for three Compressors. Performance Period: 1 Oct 17 - 30 Sep 18 (FY18 Option Year #2)

CLIN 2003 is added as follows:

2003 1 Lot OPTION Repairs & Reimbursable Parts

FFP

This CLIN is for Reimbursable Parts IAW PWS para 8.2.

Performance Period: 1 Oct 17 - 30 Sep 18 (FY18 Option Year #2)

DELIVERIES AND PERFORMANCE

The following Delivery Schedule item for CLIN 0001 has been changed from:

DELIVERY DATE QUANTITY SHIP TO ADDRESS UIC

POP 01-OCT-2015 TO

30-SEP-2016

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

F2H3A2

To:

DELIVERY DATE QUANTITY SHIP TO ADDRESS UIC

POP 01-OCT-2015 TO

30-SEP-2016

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item has been added to CLIN 0002:

POP 01-OCT-2015 TO

30-SEP-2016

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item has been added to CLIN 0003:

POP 01-OCT-2015 TO

30-SEP-2016

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item for CLIN 1001 has been changed from:

POP 01-OCT-2016 TO

30-SEP-2017

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

To:

POP 01-OCT-2016 TO

30-SEP-2017

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item has been added to CLIN 1002:

POP 01-OCT-2016 TO

30-SEP-2017

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item has been added to CLIN 1003:

POP 01-OCT-2016 TO

30-SEP-2017

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule Item has been deleted from CLIN 2001:

POP 01-OCT-2017 TO

30-SEP-2018

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item has been added to CLIN 2001:

POP 01-OCT-2017 TO

30-SEP-2018

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

The following Delivery Schedule item has been added to CLIN 2003:

POP 01-OCT-2017 TO

30-SEP-2018

N/A 18 CES/CEF

JONATHAN JEFFERS

UNIT 5132 BLDG 3489

KADENA AB OKINAWA AP 904-0000

634-3545

INSPECTION AND ACCEPTANCE

The following Acceptance/Inspection Schedule was added for CLIN 0002:

INSPECT AT INSPECT BY ACCEPT AT ACCEPT BY

Destination Government Destination Government

The following Acceptance/Inspection Schedule was added for CLIN 0003:

The Acceptance/Inspection Schedule for CLIN 1001 has been changed from:

N/A N/A N/A Government

To:

The following Acceptance/Inspection Schedule was added for CLIN 1002:

The following Acceptance/Inspection Schedule was added for CLIN 1003:

The following Acceptance/Inspection Schedule was added for CLIN 2001:

The Acceptance/Inspection Schedule for CLIN 2002 has been changed from:

N/A N/A N/A Government

To:

The following Acceptance/Inspection Schedule was added for CLIN 2003:

TABLE OF CONTENTS

The below Table of Contents has been added

Exhibit/Attachment Table of Contents

DOCUMENT TYPE DESCRIPTION PAGES DATE

Attachment 1 PWS (Revision #1) 13 27-AUG-2015 Attachment 2 Q&A Answer Sheet #1 1 27-AUG-2015 Attachment 3 Price Exhibit 1 27-AUG-2015

The following have been added by full text:

ADDENDUM TO 52.212-1

ADDENDUM TO FAR 52.212-1 - INSTRUCTIONS TO OFFERORS--COMMERCIAL ITEMS

FAR 52.212-1, paragraph (b), is changed to read as follows:

(b)(1) is changed to read: FA4621-15-T-0084

(b)(2) is changed to read: Receipt of offer shall be NLT 1430 JST on 9 September 2015.

(b)(3) is changed to read: SSgt Marcus Tucker

18 CONS/LGCA

Bldg 99

APO, AP 96368

Kadena Air Base, Okinawa, Japan Marcus.Tucker.1@us.af.mil 011-81-961-4109

(b)(6) is changed to read: Price and any discount terms: The offeror shall insert its proposed unit and extended prices in the Schedule of Contract Line Item Numbers (CLINs) in the space provided in the solicitation and submit an original and one (1) copy.

(b)(9) is changed to read: Offerors shall acknowledge amendments to the solicitation in writing via email to SSgt Marcus Tucker at Marcus.Tucker.1@us.af.mil

FAR 52.212-1, paragraph (c), is changed to read as follows:

(c) Period for acceptance of offers. The offeror agrees to hold the prices in its offer firm until 1630 JST 7 October 2015.

(End of Provision)

ADDENDUM TO 52.212-4

ADDENDUM TO FAR PROVISION 52.212-4, CONTRACT TERMS AND CONDITIONS –COMMERICIAL

ITEMS.

(1) FAR 52.212-4 paragraph (k), is changed to read:

TAX EXEMPTION CERTIFICATE

The contractor will submit requests for gasoline or diesel oil tax exemption certificates to the Contracting Officer.

This request will show the actual amount of gasoline or diesel oil used exclusively for the performance of this contract, with documentary evidence and detailed item breakdown to certify the accurate consumption o gasoline or diesel, or other necessary information and data as may be required. The Contracting Officer will issue to the contractor a Tax Exemption Certification for the actual amount of gasoline or diesel oil used exclusively for the performance of this contract. The contractor shall claim all tax and customs exemptions as listed in paragraph

“EXEMPTION FROM JAPANESE CUSTOMS DUTIES AND TAXES PURSUANT TO STATUS OF FORCES

AGREEMENT”.

EXEMPTION FROM JAPANESE CUSTOMS DUTIES AND TAXES PURSUANT TO STATUS OF FORCES

AGREEMENT (AUG 2001)

mailto:Marcus.Tucker.1@us.af.mil

(a) Paragraph 2, Article XI of the Status of Forces Agreement between Japan and the United States, authorizes the United States entry into Japan free from Japanese customs duties and all other charges on materials, supplies and equipment imported for the official use of the United States Armed Forces or for the exclusive use of such forces or ultimately to be incorporated into articles or facilities used by such forces.

(b) Paragraph 3, Article XII of said Status of Forces Agreement, authorizes the United States exemption from certain Japanese taxes for materials, supplies, equipment and services procured for official purpose in Japan by the United States Armed Forces or by authorized agencies of the United States Armed Forces. Currently, these taxes are: (1) Gasoline tax and local road tax on gasoline; (2) Diesel oil tax; (3) Liquefied petroleum tax, and (4) consumption tax.

(c) If you are the successful offeror, the Contracting Officer or his authorized representative will issue customs or tax exemption taxes in accordance with procedures agreed upon between the Government of Japan and the United States of America. Tax exemption certificates for either at the end of each month or upon termination of the contract. These can be applied against future purchases of motor fuel. They will be issued only to you as the prime contractor, so, if you employ a subcontractor or supplier who uses motor fuel, you must purchase the motor fuel to secure the exemption.

(d) List below the customs duties or taxes which have been excluded from your proposal as required by the Taxes Clause. Contractor must claim all customs and tax exemptions to which the U.S. Government is entitled.

Type of Commodity and Amount of Duty or Tax Percentage of Tax Excluded in Yen (¥)

(1) Customs Duties __________________ __________________

(2) Taxes:

(a) Gasoline tax and local road tax on gasoline __________________ __________________

(b) Diesel oil tax __________________ __________________

(c) Liquefied petroleum tax __________________ __________________

(d) Consumption tax __________________ __________________

(2) The following are hereby incorporated:

(v) In accordance with FAR 52.204-9 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR

PERSONNEL (JAN 2011),

(a) The Contractor shall comply with agency personal identity verification procedures identified in the contract that implement Homeland Security Presidential Directive-12 (HSPD-12), Office of Management and Budget (OMB) guidance M-05-24, and Federal Information Processing Standards Publication (FIPS PUB) Number 201.

(b) The Contractor shall account for all forms of Government-provided identification issued to the Contractor employees in connection with performance under this contract. The Contractor shall return such identification to the issuing agency at the earliest of any of the following, unless otherwise determined by the Government:

(1) When no longer needed for contract performance.

(2) Upon completion of the Contractor employee's employment.

(3) Upon contract completion or termination.

(c) The Contracting Officer may delay final payment under a contract if the Contractor fails to comply with these requirements.

(d) The Contractor shall insert the substance of this clause, including this paragraph (d), in all subcontracts when the subcontractor`s employees are required to have routine physical access to a Federally-controlled facility and/or routine access to a Federally-controlled information system. It shall be the responsibility of the prime Contractor to return such identification to the issuing agency in accordance with the terms set forth in paragraph (b) of this section, unless otherwise approved in writing by the Contracting Officer.

(End of Clause)

(w) In accordance with FAR 52.217-8 OPTION TO EXTEND SERVICES (Nov 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 30 days of contract expiration date.

(i) In order to meet the requirements of FAR Part 17, the price equivalent to the six (6) months extension of services authorized by FAR 52.217-8 will be evaluated separately, and will be factored as part of the total evaluated price for award. The Government will calculate prices for a quantity equivalent to 6 months by prorating prices offered for CLIN 0001 0002, 0003 and divide by 2 to evaluate the price for 6 months, and all corresponding CLINs under Options of FAR 52.217-9 and evaluate such prices for reasonableness.

(End of clause)

(x) In accordance with FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (Mar 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within 30 days of the period of expiration date; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 60 days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 42 months.

(y) In accordance with FAR 52.225-14 INCONSISTENCY BETWEEN ENGLISH VERSION AND

TRANSLATION OF CONTRACT (FEB 2000)

In the event of inconsistency between any terms of this contract and any translation into another language, the English language meaning shall control.

(z) In accordance with FAR 52.228-4 WORKERS' COMPENSATION AND WAR-HAZARD INSURANCE

OVERSEAS (APR 1984)

(a) This paragraph applies if the Contractor employs any person who, but for a waiver granted by the Secretary of Labor, would be subject to workers' compensation insurance under the Defense Base Act (42 U.S.C. 1651, et seq.).

On behalf of employees for whom the applicability of the Defense Base Act has been waived, the Contractor shall

(1) provide, before commencing performance under this contract, at least that workers' compensation insurance or the equivalent as the laws of the country of which these employees are nationals may require, and (2) continue to maintain it until performance is completed. The Contractor shall insert, in all subcontracts under this contract to which the Defense Base Act would apply but for the waiver, a clause similar to this paragraph (a) (including this sentence) imposing upon those subcontractors this requirement to provide such workers' compensation insurance coverage.

(b) This paragraph applies if the Contractor or any subcontractor under this contract employs any person who, but for a waiver granted by the Secretary of Labor, would be subject to the War Hazards Compensation Act (42 U.S.C.

1701, et seq.). On behalf of employees for whom the applicability of the Defense Base Act (and hence that of the War Hazards Compensation Act) has been waived, the Contractor shall, subject to reimbursement as provided elsewhere in this contract, afford the same protection as that provided in the War Hazards Compensation Act, except that the level of benefits shall conform to any law or international agreement controlling the benefits to which the employees may be entitled. In all other respects, the standards of the War Hazards Compensation Act shall apply;

e.g., the definition of war-hazard risks (injury, death, capture, or detention as the result of a war hazard as defined in the Act), proof of loss, and exclusion of benefits otherwise covered by workers' compensation insurance or the equivalent. Unless the Contractor elects to assume directly the liability to subcontractor employees created by this clause, the Contractor shall insert, in all subcontracts under this contract to which the War Hazards Compensation Act would apply but for the waiver, a clause similar to this paragraph (b) (including this sentence) imposing upon those subcontractors this requirement to provide war-hazard benefits.

(aa) In accordance with FAR 52.232-18 AVAILABILITY OF FUNDS (Apr 1984)

Funds are not presently available for this contract. The Government's obligation under this contract is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the Government for any payment may arise until funds are made available to the Contracting Officer for this contract and until the Contractor receives notice of such availability, to be confirmed in writing by the Contracting Officer.

(ab) In accordance with FAR 52.232-19 AVAILABILITY OF FUNDS FOR THE NEXT FISCAL YEAR (APR 1984), Funds are not presently available for performance under this contract beyond the next fiscal year . The Government's obligation for performance of this contract beyond that date is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the Government for any payment may arise for performance under this contract beyond the next fiscal year, until funds are made available to the Contracting Officer for performance and until the Contractor receives notice of availability, to be confirmed in writing by the Contracting Officer.

(End of Clause)

(ac) In accordance with FAR 52.237-1 SITE VISIT (APR 1984)

Offerors or quoters are urged and expected to inspect the site where services are to be performed and to satisfy themselves regarding all general and local conditions that may affect the cost of contract performance, to the extent that the information is reasonably obtainable. In no event shall failure to inspect the site constitute grounds for a claim after contract award.

(ad) In accordance with FAR 52.237-2 PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT, AND

VEGETATION (APR 1984)

The Contractor shall use reasonable care to avoid damaging existing buildings, equipment, and vegetation on the Government installation. If the Contractor's failure to use reasonable care causes damage to any of this property, the Contractor shall replace or repair the damage at no expense to the Government as the Contracting Officer directs. If the Contractor fails or refuses to make such repair or replacement, the Contractor shall be liable for the cost, which may be deducted from the contract price.

(ae) In accordance with FAR 52.245-1 GOVERNMENT PROPERTY (APR 2012)

(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.

“Nonseverable” 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 contract 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.

(iii) All Government-furnished property and all property acquired by the Contractor, title to which vests in the Government under this paragraph (e)(3)(iii) (collectively referred to as “Government property)”, are subject to the provisions of this clause.

(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 know. Such reports shall, at a minimum, contain the following information: (1) Date of incident (if known). (2) The data elements required under paragraph (f)(1)(iii)(A) of this clause. (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 know 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.

(4) The Contractor shall ensure Government access to subcontractor premises, and all Government property located at subcontractor premises, for the purposes of reviewing, inspecting and evaluating the subcontractor's property management plan, systems, procedures, records, and supporting documentation that pertains to Government property.

(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. If the Contractor can establish by clear and convincing evidence that the loss of Government property occurred while the Contractor had adequate property management practices or the loss did not result from the Contractor's failure to maintain adequate property management practices, the Contractor shall not be held liable.

(2) The Contractor shall take all reasonable actions necessary to protect the property from further loss. The Contractor shall separate the damaged and undamaged property, place all the affected property in the best possible order, and take such other action as the Property Administrator directs.

(3) The Contractor shall do nothing to prejudice the Government's rights to recover against third parties for any loss of Government property.

(4) The Contractor shall reimburse the Government for loss of Government property, to the extent that the Contractor is financially liable for such loss, as directed by the Contracting Officer.

(5) Upon the request of the Contracting Officer, the Contractor shall, at the Government's expense, furnish to the Government all reasonable assistance and cooperation, including the prosecution of suit and the execution of instruments of assignment in favor of the Government in obtaining recovery.

(i) Equitable adjustment. Equitable adjustments under this clause shall be made in accordance with the procedures of the Changes clause. However, the Government shall not be liable for breach of contract for the following:

(1) Any delay in delivery of Government-furnished property.

(2) Delivery of Government-furnished property in a condition not suitable for its intended use.

(3) An increase, decrease, or substitution of Government-furnished property.

(4) Failure to repair or replace Government property for which the Government is responsible.

(j) Contractor inventory disposal. Except as otherwise provided for in this contract, the Contractor shall not dispose of Contractor inventory until authorized to do so by the Plant Clearance Officer or authorizing official.

(1) Predisposal requirements.

(i) If the Contractor determines that the property has the potential to fulfill requirements under other contracts, the Contractor, in consultation with the Property Administrator, shall request that the Contracting Officer transfer the property to the contract in question, or provide authorization for use, as appropriate.