| GUIDANCE |
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Contractor's Guide for Control of
Government Property
Chapter 6: SPECIAL CONSIDERATIONS Chapters 1 - 5 apply to all Contractors. Portions of Chapter 6 may also apply. If a Contract falls under any of these categories: On-site contractors; foreign governments or international organizations; non-profit or educational organizations; and, government vehicles; the respective section may apply The information that appears in Chapter 6 is supplementary to the first five chapters, describing only additional information or special considerations. On-site contractors applies to organizations working under contract, on FAA premises. Use of government real and personal property must be authorized in the Contract as GFP, or on an "access to..." basis. In either instance, it will be itemized in the basic contract or in a subsequent contract modification. Suspected Theft of Property The procedures for missing, stolen and damaged property vary slightly for on-site contractors when theft or suspected theft is involved. The Contractor must notify FAA's internal security office as well as the Property Administrator. Note: On-site contractors are guided by the instructions, procedures, and practices outlined in Chapters 1 -5 of this Guide pertaining to the requirements for inventories, points of contact, acquisitions, transfers, disposition and other property administration areas. FOREIGN GOVERNMENTS/INTERNATIONAL ORGANIZATIONS This section pertains to contractors that are foreign governments or international organizations. Before awarding this type of contract, the Contracting Officer will determine whether costs will be recovered or rental charged for the use of government-furnished property. The Contract will specify if property is provided on a rental or non-rental basis. The official property records will be maintained by FAA for all foreign governments and international organizations. Foreign governments or international organizations performing cost-reimbursement contracts may be permitted to carry insurance for loss or damage to government property, with the cost of the insurance permitted as an allowable expense to the contract. Or they may claim immunity from liability, as determined by the Contracting Officer. Note: Contractors that are foreign governments or international organizations are guided by the instructions, procedures, and practices outlined in Chapters 1 - 5 of this Guide, pertaining to the requirements for inventories, points of contact, acquisitions, transfers, disposition and other property administration.
NON-PROFIT/ EDUCATIONAL ORGANIZATIONS When Contractor-Acquired Property is authorized for a non-profit or educational organization, under a FAA contract, for the primary purpose of research, there are special conditions for the vesting of title. Except as outlined in this section of the Guide, or in the Contract, title to CAP ordinarily vests in the non-profit or educational organization working under a research contract. However, at the FAA’s discretion, in some instances, title may vest in the Government, and the non-profit/educational organization will be subject to the requirements described in Chapters 1 - 5 of this Guide. Acquisitions: Less than $5000 If the Contractor is classified in the basic contract, or subsequent modifications, as an educational or non-profit institution, and it obtains the Contracting Officer's approval before acquisition of the property, it may acquire and retain title for any items of personal property costing less than $5000, acquired on a reimbursable basis. The acquisition of all property under the Contract requires prior approval of the Contracting Officer. Within ten days after the end of the calendar quarter during which the Contractor received the property, the Contractor must furnish the Contracting Officer and the Property Administrator a list of CAP valued at less than $5000. Acquisitions: More than $5000 If property costs $5000 or more, and the parties specifically agree in the Contract, that title may: - Vest in the contractor upon acquisition; - Vest in the contractor, subject to the Government's right to direct transfer of the title to the Government or to a third party within 12 months after contract completion/termination; or - Vest in the Government if the Contracting Officer determines that vesting of title in the contractor would not further the objectives of the Agency's research program. All acquisitions of CAP valued at $5000 or more must be reported to the Property Administrator, on the Inventory Schedule/Report of Accountable Property of Accountable Property. A copy of the Report must be attached to the reimbursement voucher. Title Considerations When title to CAP vests in a non-profit/educational institution, neither depreciation, amortization or use charges are allowable for those items under any existing or future government contracts or subcontracts. Title may not be transferred to the Contractor, if the Contract is performed at a government installation (on-site) and there is a continuing need for the property following contract completion. The absence of an agreement covering Title to property that cost $5000 or more, and that was acquired by the Contractor with government funds, does not limit the FAA’s right to act, to vest Title in a Contractor. If there is no contract clause specifying who has Title, the Property Administrator will record the Vesting of Title to the property in FAA. Note: Non-profit/educational organizations using property titled in FAA are guided by the instructions, procedures and practices outlined in Chapters 1 - 5 of this Guide, pertaining to the requirements for inventories, points of contact, acquisitions, transfers, disposition and other property administration. Title/Certificate of Origin If the contractor is authorized to acquire vehicles under the Contract, it must ensure that each vehicle is registered in FAA's name on the Title/Certificate of Origin. (Note: Contractor shall not register government vehicles with the State; FAA will furnish license tags.) How to Obtain License Tags Contractor must request license tags in advance, upon receipt of the Notification of Shipment, from the supplier. The Contractor must complete an Inventory Schedule/Report of Accountable Property to request tags and attach a copy of the Notification of Shipment. (Note: The purpose of submitting the Inventory Schedule/Report ofAccountable Property in this instance, is to provide the information FAA needs for processing the license tags.) After the vehicle is received, the Contractor must forward the Title/Certificate of Origin to the Property Administrator. Returning License Tags The Contractor is responsible for returning the license tags to the Property Administrator, when the vehicle is taken out of service. If the vehicle is replaced, new tags must be issued for the replacement vehicle. Identification of Government Vehicles The Property Administrator will provide license tags, and agency decals to identify the vehicle as FAA-owned. Trailers The Contractor must forward the Title or Certificate, for a trailer acquired under the contract, to the Property Administrator. Reporting Requirements (Government Vehicles) There are special reporting requirements for government vehicles; they are outlined in the following section. Accident Reports If a government vehicle is involved in an accident, the Contractor must complete a report of the incident and forward two copies of the accident report to the Property Administrator. Maintenance Records The Contractor must ensure that government vehicles authorized under the Contract are maintained in safe, mechanically sound condition. Contractor should maintain current records of the cost and type of maintenance performed, such as oil changes, tire rotations, and tune-ups. Maintenance records must include back-up documentation. These records are subject to review by the Government. Vehicle Reports The Contractor must submit a report to the Property Administrator, listing all vehicles under the Contract, and identifying projected vehicle acquisition needs for the next one-year period. A copy of the maintenance records/trip log for the current quarter, showing the type and cost of maintenance performed, should be included. Vehicle Listing Include the following information in your vehicle listing: - Type of vehicle (e.g., sedan or station wagon) - Model, make and year - License tag number - Serial number - Vehicle mileage - Vehicle location - Name and telephone number of your property contact
Projected Vehicle Acquisitions The Contractor’s Annual Report should identify projected vehicle acquisition needs, for the next one-year period, to include replacements and additional vehicles. (Note: The standard lead time for acquiring vehicles through GSA is 8 - 10 months.) It is essential that sufficient lead time is provided FAA to process requests. Disposal The Contractor may not release any vehicle(s) to disposition until the Property Administrator provides one of the following: - A transfer of title initiated by the Contract Property Administrator; or - SF-97, Certificate of Release of a Vehicle. This requires the signature of the buyer/receiver and provides written instructions about relief of accountability. GSA Vehicles A contractor may be authorized, by the Contracting Officer, to lease GSA vehicles. The Property Administrator will assist in coordinating this through the GSA's Fleet manager to the GSA Interagency Fleet Management System. | Back | Table
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