Solicitation Auxiliary National Supply Center.pdf

Solicitation #70Z02325RBSX10001

Commandant United States Coast Guard

2703 Martin Luther King Jr Ave SE Washington, DC 20593 Staff Symbol: CG-HCA-COCO42 Phone:(206)815-1084 Email: Jesse.L.Womack@uscg.mil

The U.S. Coast Guard Auxiliary National Supply Center (ANSC) is housed in a 23,500 square foot facility located at the Charles Melvin Price Support Center in Granite City Illinois. The (ANSC) Aux. Nat. Supply Center distributes Auxiliary as well as Recreational Boating Safety and Environmental materials to all members of the auxiliary community and other government agencies.

The U.S. Coast Guard is seeking a Request for Proposal (RFP) for the purpose of obtaining contractor warehouse, logistics and customer services in support of the U.S. Coast Guard (USCG) Auxiliary National Supply Center in Granite City, Illinois. These services are listed under NAICS 493110 and PSC R706.

Contractor support shall include receiving, processing and shipping orders and special mailing, communicating with customers, inventory control support, loading and unloading trucks, operating warehouse equipment and physically manipulating stock. Contract personnel should include the following(3) three full-time employees:

1. Project Manager (Warehouse Manager),

2. Material Handling Laborer

3. Warehouse Specialist.

These services will utilize a Firm Fixed Price contract (FFP) for a (5) year period. The contract will consist of

(1) one, 12-month base period with (4) four, 12-month option periods.

In replying to this solicitation, place of performance under the contract shall be at the U.S. Coast Guard (USCG) Auxiliary National Supply Center in Granite City, Illinois detailed in the Performance Work Statement (PWS) under section 4.5.

USCG reserves the right to select for award and fund all, some, or none of the submissions received in response to this quote request. USCG will not provide funding or reimbursement for proposal development costs. Full submissions or any other material submitted in response to this request will not be returned. All submissions shall be unclassified.

USCG reserves the right to use this announcement and responses received as part of market research efforts and may appropriately use other FAR parts to procure services.

(Reference Performance Work Statement PWS for full scope of requirements)

Eligible Offerors: This request for proposal (RFP) is open to all responsible sources in accordance with FAR 2.101, which states, “Responsible prospective contractor means a contractor that meets the standards in 9.104.”

mailto:Jesse.L.Womack@uscg.mil

REQUEST FOR QUOTE (RFQ) No: 70Z02325RBSX10001

Issued Under: Small Business 8(a) Set Aside Competitive

Solicitation Title: U.S. Coast Guard – U.S. Coast Guard Auxiliary National Supply Center Warehouse

Issuing Office: U.S. Coast Guard Headquarters, Washington DC 20593

Agency Contact(s): Mr. Kenechukwu (Tony) Anakor, Contracting Officer, CG-HCA-COCO42

Mr. Jesse L. Womack, Contract Specialist, CG-HCA-COCO42

RFP Issue Date: 8/07/2025

Questions/Clarifications Due by: August 14, 2025 by 3:00PM, Eastern Time Zone; Send to Jesse L. Womack via Email: Jesse.L.Womack@uscg.mil Thomas.J.Dardis@uscg.mil, and Randall.K.Ellington@uscg.mil

Quote Due Date: August 21, 2025 by 3:00PM, Eastern Time Zone; Send to Jesse L. Womack via Email:

Jesse.L.Womack@uscg.mil

Please ensure to carbon copy: Kenechukwu.A.Anakor@uscg.mil

1.0. CONTRACT INFORMATION

1.1. NAICS Code and Small Business Size Standard: 493110 General Warehousing and Storage

1.2. Product Service Code (PSC): R706 Support-Management: Logistics Support

1.3. Type of Contract: The primary type of contract resulting from this solicitation is Firm Fixed Price (FFP).

1.4. Type of Services: The services required are: (X) Commercial ( )Non-Commercial

1.5. Extent of Competition: This solicitation will be based on:

( ) Fair Opportunity procedures (FAR 16.505(b)(1))

_X__ Exception to Fair opportunity for a Competitive Socio-Economic Set-aside (FAR

16.505(b)(2)(F)

_____ HUB Zone small business concerns

_____ Service-disabled veteran-owned small business (SDVOSB) concerns

_____ Economically disadvantaged women-owned small business (EDWOSB) concerns eligible under the Women-Owned Small Business Program or, _____ Women-owned small business (WOSB) concerns eligible under the Women-Owned

Small Business Program

_____ Exception to Fair opportunity as designated below (FAR 16.505(b)(2))

_____ FAR 16.505(b)(2)(A) The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays]

_____ FAR 16.505(b)(2)(B) Only one awardee is capable of providing the supplies or mailto:Jesse.L.Womack@uscg.mil mailto:Thomas.J.Dardis@uscg.mil mailto:Randall.K.Ellington@uscg.mil mailto:Jesse.L.Womack@uscg.mil mailto:Kenechukwu.A.Anakor@uscg.mil services required at the level of quality required because the supplies or services ordered are unique or highly specialized]

_____ FAR 16.505(b)(2)(C) The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order]

_____ FAR 16.505(b) (2) (E) For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source]

1.6. Security Clearances:

1.6.1. The clearance level is X Unclassified ____Classified

1.6.2. The Facility Clearance Level is: _X_ Unclassified ___Secret Top Secret

1.7. Performance Location(s):

1.7.1. The performance locations for this PWS/SOW are: X CONUS

OCONUS

Mix of Both

1.7.2 The labor will be performed at: _X__ Government Site(s) __ Contractor Site(s) Mix of Both

1.8. Place(s) of Performance: The period of performance for this contract is one year from the date of the award, unless a different start date is negotiated. Options years are included as this is the most advantageous approach for the government. Factors considered include potential cost savings, ensuring continuity of operations, market stability, and the need for flexibility in meeting future requirements, while ensuring that the option was properly evaluated during the initial competition process.

1.9. Period of Performance: The period of performance for this PWS is: (1) one, 12-month base period with (4) four, (12) month option period(s) from time of award. Anticipated start date shall be December 1, 2025 total (5) five years or negotiated.

Base Period: 01 Dec 2025 – 30 Nov 2026 Option Period 1: 01 Dec 2026 – 30 Nov 2027 Option Period 2: 01 Dec 2027 – 30 Nov 2028 Option Period 3: 01 Dec 2028 – 30 Nov 2029 Option Period 4: 01 Dec 2029 – 30 Nov 2030

2.0 Description of Services

See Attachment 1 – Performance Work Statement (PWS).

3.0 Delivery and Performance Information

See Attachment 1 – Performance Work Statement (PWS).

4.0 Contract Line Items (CLINs) and Contract Type by CLIN

See Attachment 2 – CLIN Price Summary Template.

5.0 Funding: USCG may encounter funding delays. Per FAR 52.232-18 “Availability of

Funds”, if funding is delayed, USCG will notify the awardee prior to the award. All option periods that are reviewed to exercise the option are funded annually and maybe “subject to availability of funds.” The contract specialist or contracting officer will notify the awardee of availability or non-availability of appropriated funds.

NOTE: USCG will not be funding through grants.

Definition: A "subject to availability of funds" statement clarifies that a party's obligations, often financial, are dependent on the actual receipt and allocation of funds. This means if the expected funding is reduced or doesn't materialize, the obligated party isn't held liable for fulfilling the commitment

6.0 Government Furnished Resources

The Government will furnish resources to the Contractor in support of this contract such as Government Furnished Property List (GFPL) that will be released after award to transfer to awardee and inventory, maintain during the duration of the contract or upon any changes or notification from the Contracting Officer Representative or Contracting Officer.

The Quality Assurance Surveillance Plan (QASP) will be released to the offeror’s and the final contractor as attachment (4) four of this solicitation and along with the final award (reference

FAR 37.604)

7.0 Government Acceptance Period

The COR will review deliverables prior to acceptance. The Contracting Officer Representative will provide the contractor with an e-mail that provides documented reasons for non-acceptance.

If the deliverable is acceptable, the Contracting Officer Representative will send an e-mail to the Contractor notifying it that the deliverable has been accepted.

8.0 Order Type

Shall be Firm-Fixed-Price (FFP) contract. Funding will be obligated prior to the beginning of each option year period. Base year funding will be obligated. The Government does not have obligations or have to commit to the option year periods. The contractor will be notified at least 60 days prior if the upcoming option period will not be exercised.

9.0 Eligibility Information:

a. All qualified offerors who meet the requirements of this solicitation may submit a proposal.

b. Foreign participation: Foreign Disclosure Review will be accomplished on each full proposal selected for funding; foreign participation may not be allowed.

c. Notice to Foreign-Owned Firms: Such firms are asked to immediately notify the Contracting Officer before deciding to respond to this announcement. Foreign contractors should be aware that restrictions might apply which could preclude their participation in this acquisition.

d. Offerors cannot submit more than one (1) proposal.

e. You may be ineligible for the award if all requirements of this announcement are not met.

10.0 INVOICE SUBMISSION INSTRUCTIONS

On a monthly basis, if all services are in compliance with the contract, the contractor may submit an invoice for the amount of support services provided. Invoices shall be consistent with established unit prices per CLIN and/or within the total not-to-exceed CLIN limit. If services are not in compliance with the contract, payment will be withheld on those associated CLINs until in compliance with the contract.

Electronic Submission of Payment Requests (FSMS Awards)

(a) Definitions. As used in these instructions -

(1) “Payment request” means a bill, voucher, invoice, or request for contract financing payment with associated supporting documentation. The payment request must: comply with the requirements identified in FAR 32.905(b), “Content of Invoices” and the applicable Payment clause included in this contract. In addition, discount offers and small business status if available must be stated. If travel was allowable and approved, components in accordance with FAR 31.205-46 must be provided.

(b) Except as provided in paragraph (c) of this clause, the contractor must submit payment requests electronically using the Invoice Processing Platform (IPP). Information regarding IPP, including IPP Customer Support contact information is available at www.ipp.gov or any successor site.

(c) The contractor may submit payment requests using a method other than IPP only when the contracting officer authorizes alternate procedures in writing in accordance with Coast Guard procedures.

(d) If alternate payment procedures are authorized, the contractor must include a copy of the contracting officer's written authorization with each payment request.

***Invoice Processing Platform (IPP) Enrollment Notification*** You will submit proper invoices associated with this award through the Invoice Processing Platform (IPP) at https://www.ipp.gov/. IPP is a secure web-based electronic invoicing system provided by the U.S.

Department of the Treasury’s Bureau of the Fiscal Service in partnership with the Federal Reserve Bank of St. Louis (FRSTL). IPP is available at no cost to any commercial vendor or independent contractor doing business with a participating government agency.

ACTIONS TO TAKE:

If you are already enrolled in IPP: If your company is already registered to use IPP, you will not be required to re-register and you do not need to contact IPP. If you are NOT already enrolled in IPP:

The point of contact you provided in your SAM.gov registration will receive two emails from ipp.noreply@mail.eroc.twai.gov. Please note that emails from this email address may filter into your spam or junk folder:

1. The first email will have the IPP Logon ID and a link to the IPP application.

2. A second email, which will be sent within 24 hours of the first email, contains a temporary password.

Once your contact receives these emails, please ensure they log into IPP and complete the registration process. Once registered to use IPP, your company may submit invoices electronically, receive e-mail notifications when requests are paid, view payment history, and access remittance downloads. The e-mail notification of payment is sent when a payment is distributed to your bank account and may include the following payment information: Date of payment, dollar amount, invoice number, paying agency, payee name, and ACH trace number. Vendor training materials, including a first-time login tutorial, are available on the https://www.ipp.gov/ website. Once you have logged in to the IPP application, you will have access to user guides that provide step-by-step instructions for all IPP capabilities, ranging from creating and submitting an invoice to setting up email notifications. Live webinars are held monthly and provide a great opportunity to learn the basics of the system and to call in and ask the IPP team questions about the IPP application. IPP Customer Support is available to assist users of the system and can answer your questions related to accessing IPP or completing the registration process.

• Toll-free number: 866-973-3131

FAR Clauses and Statement of Work

• Email address: IPPCustomerSupport@fiscal.treasury.gov

• Hours of operation: Monday through Friday (excluding bank holidays) from 8:00 am - 6:00 pm ET

WHEN TO SUBMIT: The contractor must first:

(1) Receive a fully executed purchase order, contract, delivery order or task order

(2) Provide the requirements (products and/or services), and

(3) Have ACTIVE status in the System for Award Management (SAM) at https://www.sam.gov

(4) Electronic Submission of Payment Requests

(a) Definitions. As used in these instructions -

(1) “Payment request” means a bill, voucher, invoice, or request for contract/order financing payment with associated supporting documentation. The payment request must: comply with the requirements identified in FAR 32.905(b), “Content of Invoices” and the applicable Payment clause included in this contract/order.

In addition, discount offerings and small business status if available shall be stated. If travel was allowable and approved, components in accordance with FAR 31.205-46 shall be provided.

(b) Except as provided in paragraph (c) of this clause, the contractor shall submit payment requests electronically using the Invoice Processing Platform (IPP). Information regarding IPP, including IPP Customer Support contact information, is available at www.ipp.gov or any successor site.

(c) The contractor may submit payment requests using a method other than IPP only when the contracting officer authorizes alternate procedures in writing in accordance with Coast Guard procedures.

(d) If alternate payment procedures are authorized, the contractor shall include a copy of the contracting officer's written authorization with each payment request

(e) IPP enrollment information is at https://www.uscg.mil/fincen/IPP/.

(f) Receiving Official: Thomas Dardis via email at Thomas.J.Dardis@uscg.mil

(g) Invoice Approver Official: Thomas Dardis via email at Thomas.J.Dardis@uscg.mil

(a) (h) Contracting Officer’s Representative: Thomas Dardis via email at Thomas.J.Dardis@uscg.mil

11.0. Proposal Submission Requirement

a. EXTRANEOUS INFORMATION: Information not explicitly requested in this announcement is not desired by the government and shall not be submitted. The government will only read and evaluate each section up to the stated page limit. Pages exceeding the page limitation will not be evaluated.

b. FORMATTING:

1) Paper Size – 8.5-inch x 11 inch

2) Margins – one-inch on each side

3) Font – Times New Roman 12-point font, to include tables, diagrams, and charts. Any other information (e.g., footnotes, headers, restrictive markings) shall not be smaller than the Times New Roman 8-point font.

4) The quote shall be submitted in either Microsoft Word or Adobe PDF. Additionally, documents should be sent without password protection.

c. RESTRICTIVE MARKING: If the offeror wishes to restrict its proposals, they must be marked with the restrictive language stated in FAR 52.215-1(e).

d. Offers shall contain the following:

• Introduction section.

• Section for technical capability

• Section for staffing key personnel

• Pricing section (Submit as separate proposal from technical proposal). Ensure that the pricing proposal is included on the attached pricing summary spreadsheet.

Response to Solicitation Provisions (Enclosure 3)

The contractor’s response shall be limited to a maximum of (15) fifteen pages. Page size shall be 8.5” x 11”.

The introduction section shall include information; the company name, company address, company website, Point of Contact’s email address and phone number, Unique Entity Identifier (UEI) number, company size, type of small business concern.

1) Part 1. COVER PAGE. Submit in the format of the template provided as Attachment 1. Page limit is one

(1) page.

2) Part 2. TECHNICAL/MANAGEMENT. (Page limit is five (5) pages. Technical/management shall present, briefly and concisely, the important goals, aspects and core issues of the proposal in technical context. The technical area shall include:

• The technical aspects from above are to be addressed, statement of objectives and proposed approach to meet the objectives.

• Description of the effort to be accomplished. Identify specific tasks.

• An assessment of risk and mitigation plan.

• Description of how proposed work advances the state of warehousing with new technology or methods approach.

• Management – describe how the warehouse shall be organized and how the efforts are related to each other along with any other management or administrative information that should be provided for evaluation of the effort.

3) Part 3. CAPABILITIES. Page limit is three (3) pages. This section shall describe the overall capabilities of the offeror to include current and past work in similar proposed efforts that is applicable to the warehousing and a brief description of the facility capabilities that will be used to execute the proposed effort.

4) Part 4. SCHEDULE. The page limit is two (2) pages. (The schedule shall identify and describe major milestones for the entire effort not to exceed one (1) year from date of award. Duration for specific tasks identified in the technical/management section should be shown. The schedule should include an additional three (3) months after the end of technical performance to provide for preparation, submission, review by The U.S. Coast Guard, and acceptance of the final report.

4) Part 5. STAFFING/KEY PERSONNEL. (Page limit is five (5) pages. Technical/management shall present, briefly and concisely, the important goals, aspects of the proposal in staffing context. The technical area shall include:

i.) The staffing aspect from above to be addressed, statement of objectives and proposed approach to meet the objectives.

ii.) Description of the effort to be accomplished and identify specific tasks.

iii.) An assessment of risk and mitigation plan.

iv.) Management – describe how the efforts are related to each other along with any other management or administrative information that should be provided for evaluation of the effort.

a. Basis for Award and Order of Importance:

The USCG intends to award a single firm fixed price contract for services, as specified in the applicable Performance Work Statement (PWS). The Offeror whose quote conforms to the Request for Proposal (RFP). A contract will be awarded based on Lowest Priced Technically Acceptable (LPTA) which meets all acceptability standards. No technical tradeoffs will be made and no additional credit will be given for exceeding acceptability.

The Government intends to provide a fair opportunity when evaluating the proposal and awarding a single contract based on a technically acceptable proposal with the lowest evaluated price. The Contracting Officer intends to award without communications. In the event the Contracting Officer determines it is in the best interest of the Government to hold communications, the Government will utilize the flexible authority of FAR 16.505 in conducting those communications and shall not be held to procedures conducted within the authority of FAR Part 15. Therefore, the proposal shall contain the best terms from both a technical and price standpoint. The Government reserves the right to conduct communications if determined necessary by the Contracting Officer. You are cautioned that taking exception to the terms and conditions of the RFP may cause an otherwise acceptable proposal to become unacceptable.

1. Evaluation Criteria

The quotes received in response to the Contractor Support Services RFP 70Z02325RBSX10001 will be evaluated using the following factors:

Volume I Price - Evaluation Criteria:

Factor 1: Price

The Total Evaluation Price (TEP) will be evaluated for the overall reasonableness of price. Pricing will also be evaluated to determine if the labor rates are consistent with the market labor rates for the designated area of work and appropriate for the USCG's requirements. For evaluation purposes, the Government will determine the TEP by adding the proposed prices for the Base Period and all Option Periods.

As an attachment to their Quote, Quoter's shall provide their representations with regard to FAR Provisions 52.209-2 (Prohibition on Contracting with Inverted Domestic Corporations) and 52.209-11 (Representation by Corporations Regarding Delinquent Tax Liability or a Felony Conviction under any Federal Law).

The proposal shall indicate, in this section, if any price related assumptions had to be made, and include this information based on the Price Summary Template Worksheet within attachment 2.

Volume II Technical Approach - Evaluation Criteria:

Factor 2: Technical

a. Technical Approach

The Technical Approach will be evaluated by the Government to determine both the understanding of and ability to meet or exceed the requirements contained in the Performance Work Statement (PWS). Simply restating the PWS requirements will result in a rating below satisfactory. The Government will also evaluate the quoter's Contingency Recruitment and Retention Plan to maintain qualified personnel in key positions.

b. Key Personnel Resumes

Resumes will be reviewed to evaluate the knowledge and experience of key personnel as they relate to this PWS and Key Personnel Qualifications, as well as whether a letter of intent is provided (if applicable).

c. Labor Mix

The Government will evaluate the Quoter's proposed labor mix to determine if it is appropriate for purposes of this effort.

d. Transition-In Plan

The Government will evaluate the Quoter's Transition-In Plan to determine acceptability of the plan to seamlessly transition work from the incumbent Contractor immediately at the start of contract performance. The Government will evaluate Quoter’s Transition-In Plan to determine whether proposed Key Personnel are fully qualified.

1) AWARD NOTICES: Offerors will be notified in writing whether their proposal is recommended for the award. An award recommendation is not to be construed to mean the award of a contract is assured as availability of funds and successful negotiations are prerequisites to any award. This announcement is not an authorization to commence work or to incur any costs to perform the tasks described above.

12.0. Evaluation

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

(a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers:

This evaluation will evaluate the proposals received in response to the Auxiliary National Supply Center Warehousing Request for Proposal (RFP) using the following factors:

Factor 1 – Price

Price will be fair and reasonable for all prices and options under the contract.

Technical Capability and Price are equally important evaluation factors however; the government reserves the right to award to the best value considering these three factors.

Factor 2 – Technical Capability/Experience

Technical Capability will be evaluated adjectivally based on its methods in providing the required staffing and execution of elements and objectives of the PWS.

Factor 2 – Staffing Plan/Key Personnel

Technical Capability, Experience/Staffing Plan, and Price are equally important evaluation factors. The government reserves the right to award the best value considering these three factors

(b) Options. The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that an offer is unacceptable if the option prices are significantly unbalanced. Evaluation of options shall not obligate the Government to exercise the option(s).

(c) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, shall result in a binding contract without further action by either party. Before the offer’s specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before the award.

13.0 Federal Acquisition Regulation (FAR), Homeland Security Acquisition (HSAR) Clauses and Applicable Terms and Conditions

All Applicable and Required provisions/clauses set forth in the GSA contract shall automatically flow down to all task orders, based on their specific contract type (e.g. cost, fixed price, etc.), statement of work, competition requirements, commercial or not commercial, and dollar value as of the date the task order solicitation is issued.

Representation and Certification Provisions from the master contracts automatically flow down to all task orders.

FAR Provisions by Reference

FAR Provision No. Title and Date

52.212-1 Instructions to Offerors—Commercial Products and Commercial Services (Sep 2023)

52.204-7 System for Award Management (NOV 2024

FAR Clauses by Reference

FAR Clause No. Title and Date

52.203-12 Limitation on Payments to Influence Certain Federal Transactions (Jun 2020)

52.212-4 Contract Terms and Conditions - Commercial Items (NOV 2023)

52.232-18 Availability of Funds (Apr 1984)

52.243-1 Changes-Fixed-Price (JUNE 2025) (DEVIATION 25-09)

52.243-4 Changes (JUNE 2025) (DEVIATION 25-09)

52.232-18 Availability of Funds (APR 1984)

FAR Clauses Incorporated by Full Text

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 difference (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 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, boring, 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 waste, 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 is the result of…