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CONTRACT PROPERTY

Presentation to GSFC Procurement Mike Showers May 6, 2010. CONTRACT PROPERTY. AGENDA. What is property Property in the contract “lifecycle” Preaward Award Administration Closeout. GOVERNMENT PROPERTY. WHAT IS PROPERTY?. PROPERTY. Contractor Owned. Government Owned. Part 45.

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CONTRACT PROPERTY

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  1. Presentation to GSFC Procurement Mike Showers May 6, 2010 CONTRACT PROPERTY

  2. AGENDA • What is property • Property in the contract “lifecycle” • Preaward • Award • Administration • Closeout

  3. GOVERNMENT PROPERTY WHAT IS PROPERTY? PROPERTY Contractor Owned Government Owned Part 45 Personal Property Personal Property Real Property Real Property Intangible Property Intangible Property

  4. PERSONAL PROPERTY Material Equipment Special Tooling Special Test

  5. PROPERTY LIFE CYCLE PLANNING DISPOSING ACQUIRING MANAGING

  6. CONTRACT PROPERTY LIFECYCLE PLANNING DISPOSITION SOLICITATION MANAGEMENT EVALUATION AWARD

  7. PREAWARD • Planning for property • Solicitation Preparation • Contractor’s Property System Evaluation • Providing Property With Award

  8. PLANNING • FAR Part 7 • Include ALL Relevant Personnel • Consider ALL life cycle costs INCLUDING Disposition • Description of Supplies… • Federal Cataloging Requirement in Federal Property and Administrative Services Act (40 USC) • Identify Risks • Risk of performance from provided property • Risk of loss, damage or destruction of property

  9. PLANNING • FAR Part 7 • Government Furnished Property • Should be Government “provided” property • CO must consider policy in 45.102 and NFS 1845.102-70 • NFS • Contract Administration Functions • Property Administration • Plant clearance

  10. SOLICITATION PREPARATION • FAR Requirements • List of property to be offered • Description of evaluation procedures • List of rent free use • Other CO approvals • Dates and times available for use on instant contract • Amount of rent that would be charged otherwise • The Contractor’s proposed VCS or ILPS for management of Government property • Degree to which the language of contract needs to address use on multiple contracts

  11. SOLICITATION PREPARATION • NFS Requirements • IPO Review Required • For all Cost Reimbursement contracts • For on-site contracts over the simplified acquisition threshold • When existing GP is furnished • Property may be acquired and titled to Government under FAR property clause • IPO Reviews for • Correct clauses • Impact on center logistics and supply operations • Assure transactions take place as required • Center Public Affairs Office • Review for possible artifact significance (NFS clause)

  12. SOLICITATION PROVISIONS • NFS 1852.245-80 Government Property Management Information • When GP is known or likely (Cost Reimbursement Contracts) • Use alternate when providing “as-is” • NFS 1852.245-81 List of Available GP • When GP will be made available for performance of a contract

  13. USE OF FAR CLAUSES • FAR 52.245-1 • All cost contracts • Any Fixed Price Contract with GFP • FAR 52.245-2 • On-site contracts where property will be furnished initially and it will not survive the life of the contract.

  14. USE OF NFS CLAUSES • 1852.245-70 Contractor Requests for Government-Provided Equipment • Cost contracts • Alternate for contractors with screening ability • 1852.245-71 IAGP • On-site contracts • Alternate for contractors with receiving activities

  15. USE OF NFS CLAUSES • 1852.245-72 Liability for GP Furnished for Repair or Other Services • Fixed Price, Time and Material and Labor Hour contracts for repairs, mods and servicing of GP • 1852.245-73 Financial Reporting of GP in Custody of Contractors • All Cost type • All Fixed Price with GFP, Progress or Performance Payments • Not in IAGP Exclusive Contracts

  16. USE OF NFS CLAUSES • 1852.245-74 Identification and Marking of GP • Any contract with FAR52.245-1 • Any contract with deliverable supplies • 1852.245-75 Property Management Changes • Any contract with FAR Property clause or Progress Payments

  17. USE OF NFS CLAUSES • 1852.245-76 List of GFP Pursuant to FAR 52.245-1 • In contracts – not solicitations • Must be modified to add property furnished later in contract • 1852.245-77 List of GFP Pursuant to FAR 52.245-2 • In contracts, not solicitations • No modification – initial provisioning only • 1852.245-78 Physical Inventory of Capital GP • Cost Reimbursement and Fixed Price with GP Provided

  18. USE OF NFS CLAUSES • 1852.245-79 Records and Dispositon Reports for GP with Potential Historic or Significant Real Value • Consult Center Historic Preservation Officer • GP likely to have historic value or greater value at sale due to its NASA pedigree

  19. PROPOSAL EVALUATION • FAR Evaluation Procedures • CO consider and adjust for unfair advantage associated with provision of property • Ensure that the contractors property management plans, practices, systems, etc. are consistent with the requirements of the solicitation • Property Clause FAR 52.245-1 • NFS Clauses • Additional Center Requirements • IPO Review Required • Establish Responsibility (Minimum) • Selection evaluation when property management is critical to contract success

  20. PROPOSAL EVALUATION • NFS Evaluation Requirements • Establish responsibility of contractor related to property management • IPO Review of property management standards, practices, etc. prior to award • IPO may involve cognizant PA • Past performance • Difference from current practice/system • Risk evaluation • CO adjusts proposal to accommodate competitive impact from provision of property • CO charges rent as appropriate • CO requires correction of system/plan/practice/standard deficiencies prior to award

  21. PROVIDING WITH AWARD • Contractors should provide all property needed for performance • Providing includes • Property (not just equipment) “furnished” to a contractor • Property from preceeding contracts is furnished • Property transferred otherwise to a contractor is furnished • Property acquired and directly charged under cost type contracts or cost lines on fixed price contracts

  22. AWARD ACTIONS • Process property transactions authorized in award • IPO works with CO, COTR, Contractor and NASA Equipment Management • Property transactions IAW PIC 05-07 (or NFS hopefully) • Full documentation and audit trail • Excess from any preceding contract processed • Equitable Adjustments for missing or non-functional property • Delegations put in place • Property Administration • Plant Clearance • All cost type contracts off site • Fixed price with GFP or cost line off site

  23. ADMINISTRATION ACTIONS • Enforcement of Property Administrator Determinations • Contractor system inadequate • Contractor Loss, Damage, Destruction or Theft Liability • Enforce submission of reports in accordance with NFS 1852.245-73 • Decisions to provide additional equipment • Use of provided property on other contracts

  24. POST – AWARD PROVISION • COs should ask: • Is it in the Government’s Best Interest? • Is the increased cost of Admin OK? • DON’T FORGET PLANT CLEARANCE COSTS • Is the increased risk to the Government acceptable? • WHAT CONSIDERATION WILL WE RECEIVE?

  25. CLOSEOUT • DO • Support the Plant Clearance Officer • DON’T • Close the contract until all property is used, transferred or dispositioned AND PA sends closeout • Agree to pay for contractor premises rehab associated with property • REQUIRE CONTRACTORS TO STORE PROPERTY PAST CONTRACT END

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