Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules 18497 

pursuant to paragraph (c)(5)(iii)(C)(2) of 

this section within no more than one 

week of the change. Providers may 

satisfy this requirement by filing the 

relevant portion of FCC Form 499–A in 

accordance with the Instructions to such 

form. 

* * * * * 

[FR Doc. 2011–7798 Filed 4–1–11; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 73 

[MB Docket No. 11–54, RM–11624; DA 11– 

499] 

Television Broadcasting Services; 

Augusta, GA 

AGENCY: Federal Communications 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The Commission has before it 

a petition for rulemaking filed by 

Southern Media Holdings, Inc. (‘‘SMH’’), 

the licensee of station WFXG, Augusta, 

Georgia, requesting the substitution of 

channel 51 for channel 31 at Augusta. 

SMH seeks this channel substitution as 

it cannot obtain the credit necessary to 

construct the channel 31 facility and 

states that the money required to 

construct the channel 31 facility will 

instead be used to serve other aspects of 

the public interest. 

DATES: Comments must be filed on or 

before May 4, 2011, and reply comments 

on or before May 19, 2011. 

ADDRESSES: Federal Communications 

Commission, Office of the Secretary, 

445 12th Street, SW., Washington, DC 

20554. In addition to filing comments 

with the FCC, interested parties should 

serve counsel for petitioner as follows: 

Harry C. Martin, Esq., Fletcher, Heald & 

Hildreth, PLC, 1300 N. 17th Street, 11th 

Floor, Arlington, VA 22209. 

FOR FURTHER INFORMATION CONTACT: 

Joyce L. Bernstein, 

joyce.bernstein@fcc.gov, Media Bureau, 

(202) 418–1600. 

SUPPLEMENTARY INFORMATION: This is a 

synopsis of the Commission’s Notice of 

Proposed Rule Making, MB Docket No. 

11–54, adopted March 15, 2011, and 

released March 16, 2011. The full text 

of this document is available for public 

inspection and copying during normal 

business hours in the FCC’s Reference 

Information Center at Portals II, CY– 

A257, 445 12th Street, SW., 

Washington, DC 20554. This document 

will also be available via ECFS (http:// 

www.fcc.gov/cgb/ecfs/). (Documents 

will be available electronically in ASCII, 

Word 97, and/or Adobe Acrobat.) This 

document may be purchased from the 

Commission’s duplicating contractor, 

Best Copy and Printing, Inc., 445 12th 

Street, SW., Room CY–B402, 

Washington, DC 20554, telephone 

1–800–478–3160 or via e-mail http:// 

www.BCPIWEB.com. To request this 

document in accessible formats 

(computer diskettes, large print, audio 

recording, and Braille), send an e-mail 

to fcc504@fcc.gov or call the 

Commission’s Consumer and 

Governmental Affairs Bureau at (202) 

418–0530 (voice), (202) 418–0432 

(TTY). This document does not contain 

proposed information collection 

requirements subject to the Paperwork 

Reduction Act of 1995, Public Law 

104–13. In addition, therefore, it does 

not contain any proposed information 

collection burden ‘‘for small business 

concerns with fewer than 25 

employees,’’ pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4). 

Provisions of the Regulatory 

Flexibility Act of 1980 do not apply to 

this proceeding. Members of the public 

should note that from the time a Notice 

of Proposed Rule Making is issued until 

the matter is no longer subject to 

Commission consideration or court 

review, all ex parte contacts (other than 

ex parte presentations exempt under 47 

CFR 1.1204(a)) are prohibited in 

Commission proceedings, such as this 

one, which involve channel allotments. 

See 47 CFR 1.1208 for rules governing 

restricted proceedings. 

For information regarding proper 

filing procedures for comments, see 47 

CFR 1.415 and 1.420. 

List of Subjects in 47 CFR Part 73 

Television. 

Federal Communications Commission. 

Barbara A. Kreisman, 

Chief, Video Division, Media Bureau. 

Proposed Rule 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission proposes to amend 47 CFR 

part 73 as follows: 

PART 73—RADIO BROADCAST 

SERVICES 

1. The authority citation for part 73 

continues to read as follows: 

Authority: 47 U.S.C. 154, 303, 334, 336, 

and 339. 

§ 73.622(i) [Amended] 

2. Section 73.622(i), the PostTransition Table of DTV Allotments 

under Georgia, is amended by adding 

channel 51 and removing channel 31 at 

Augusta. 

[FR Doc. 2011–7787 Filed 4–1–11; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 31, 32, 45, 49, 52, and 

53 

[FAR Case 2010–009; Docket 2010–0009; 

Sequence 1] 

RIN 9000–AL95 

Federal Acquisition Regulation; 

Government Property 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: DoD, GSA, and NASA are 

proposing to amend the Federal 

Acquisition Regulation (FAR) to clarify 

reporting, reutilization, and disposal of 

Government property and the contractor 

requirements under the Government 

property clause. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat at one of the addressees 

shown below on or before June 3, 2011. 

to be considered in the formation of the 

final rule. 

ADDRESSES: Submit comments in 

response to FAR Case 2010–009 by any 

of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inputting ‘‘FAR Case 2010–009’’ under 

the heading ‘‘Enter Keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Submit a Comment’’ that corresponds 

with ‘‘FAR Case 2010–009.’’ Follow the 

instructions provided at the ‘‘Submit a 

Comment’’ screen. Please include your 

name, company name (if any), and ‘‘FAR 

Case 2010–009’’ on your attached 

document. 

• Fax: (202) 501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(MVCB), ATTN: Hada Flowers, 1275 

First Street, NE., 7th Floor, Washington, 

DC 20417. 

Instructions: Please submit comments 

only and cite FAR Case 2010–009, in all 

correspondence related to this case. All 

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18498 Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jeritta Parnell, Procurement Analyst, at 

(202) 501–4082, for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at (202) 501– 

4755. Please cite FAR Case 2010–009. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA are proposing 

to amend the FAR to clarify current FAR 

policy with respect to the proper 

disposition of contractor inventory. 

However, a number of other changes 

were made, aimed at enhancing the 

management of Government contract 

property in the hands of contractors. 

The changes are the result of questions 

raised by contractors and Government 

personnel, Government and industry 

exchanges, and lessons learned. In 

addition, some comments from the 

previous FAR Case 2008–011, published 

in the Federal Register at 75 FR 38675 

on July 2, 2010), that were deemed to be 

outside the scope of that case, are 

addressed in this case. 

The revisions include the following: 

1. Clarify that FAR part 45 and FAR 

52.245–1 does not apply to Government 

property incidental to the place of 

performance at a Government site or 

installation. See FAR 45.000. 

2. Add new definitions for ‘‘loss of 

Government property’’ and ‘‘unit 

acquisition cost’’ in FAR part 45 and 

FAR 52.245–1, delete the definition of 

‘‘acquisition cost,’’ and move the 

definition of ‘‘surplus property’’ from 

part 45 to part 2. 

3. Update FAR subpart 45.6 to clarify 

and align with the Federal Management 

Regulation; and 

4. Revise language based on 

comments received in response to, but 

outside the scope of, FAR Case 2008– 

011. 

II. Executive Order 12866 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

III. Regulatory Flexibility Act 

The proposed changes may have a 

significant economic impact on a 

substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act 5 U.S.C. 601, et seq., 

because the rule affects the method of 

managing some Government property in 

the hands of contractors, particularly 

scrap. However, as the rule reduces the 

burden on all businesses by removing 

the reporting of production scrap, it 

should have a positive effect on small 

businesses. An Initial Regulatory 

Flexibility Act (IRFA) analysis has been 

prepared and is summarized as follows. 

This Initial Regulatory Flexibility Analysis 

has been prepared consistent with Section 

603, Title 5, of the United States Code. 

1. Description of the reasons why action 

by the agency is being considered. 

DoD, GSA, and NASA are proposing to 

revise FAR parts 45 and 52. The focus of this 

effort is to clarify FAR subpart 45.6, 

Reporting, Reutilization, and Disposal, and 

the contractor requirements under the clause 

at FAR 52.245–1. 

The revisions include technical corrections 

to align the FAR with the requirements of the 

Federal Management Regulation (FMR). For 

example, the new language is now consistent 

with current property reutilization priorities, 

abandonment and destruction 

determinations, and surplus sales policy. 

Moreover, the language has been edited for 

clarity and placed in proper process 

sequence. Also included is new and 

expanded policy language on the disposal of 

scrap. 

Notwithstanding the proposed rule’s 

overall focus on FAR subpart 45.6 and the 

associated contractor requirements under 

FAR 52.245–1, additional revisions include 

new language at FAR 45.104 for contracting 

officers on depositing monies received from 

contractors for property that is lost, damaged, 

destroyed or stolen. 

In essence, the rule does not result in new 

requirements on contractors; it clarifies 

existing policies and procedures. The rule 

will simplify compliance for contractors and 

enable consistent Government oversight. 

2. Succinct statement of the objectives of, 

and legal basis, for, the proposed rule. 

Title 40 U.S.C. 524, Public Buildings, 

Property, and Works requires, in part, that 

executive agencies account for Government 

property, determine when such property is 

excess, and dispose of excess Government 

property promptly. This proposed rule 

amends the FAR to revise the policies for the 

disposition of contractor inventory. The 

objective of this case is to substantially 

revise, clarify, and improve current policy. 

3. Description of, and, where feasible, 

estimate of the number of small entities to 

which the proposed rule will apply. 

It is estimated that approximately 5000 

contractors have Federal property in their 

possession. DoD has approximately 3000 

contractors with potential contract-property 

reporting requirements. Approximately 60 

percent of all DoD contractors are small 

businesses. Given that property in the 

possession of contractors is overwhelmingly 

DoD property, it is estimated the DoD ratio 

of small business to total businesses having 

such property is a reasonable approx-imation 

for all Government contractors. Therefore, it 

is estimated that approximately 3000 small 

businesses have Government property in 

their possession. 

4. Description of projected reporting, 

recordkeeping, and other compliance 

requirements of the proposed rule, including 

an estimate of the classes of small entities 

which will be subject to the requirement and 

the type of professional skills necessary for 

preparation of the report of record. 

FAR Case 2004–025 streamlined the 

requirements concerning property 

management in FAR part 45. FAR Case 2008– 

011 continued that philosophy. This new 

proposed rule seeks continuous improvement 

to property management by streamlining and 

clarifying the policies for the disposition of 

contractor inventory. DoD, GSA, and NASA 

believe the rule will have a positive effect on 

small businesses in that it further streamlines 

the process and reduces the paperwork 

burden. 

It should be noted that these recommended 

changes are consistent with the Office of the 

Under Secretary of Defense, Acquisition, 

Technology and Logistics, recent statements 

emphasizing the need to improve the 

productivity of the defense industry and 

remove Government impediments to 

efficiency. 

There are four reports currently required. 

These reports are required to assure 

appropriate use and disposition of contract 

property. These reports are— 

SF 1423, Inventory Verification Survey. 

SF 1424, Inventory Disposal Report. 

SF 1428, Inventory Disposal Schedule. 

SF 1429, Inventory Disposal Schedule 

Continuation Sheet. 

All of these forms are available online and 

may be submitted by the contractor using 

electronic means. It should be noted that DoD 

no longer requires the use of the SF 1428 and 

1429 forms and instead DoD uses the webenabled Plant Clearance Automated 

Reutilization and Reporting System 

(PCARRS). NASA and other Federal agency 

contractors use PCARRS when their contracts 

are delegated to DCMA for plant clearance. 

Use of PCARRS reduces burden on small 

businesses as well other businesses by 

providing an easily accessible web-based 

reporting mechanism. 

5. Identification, to the extent practicable, 

of all relevant Federal rules that may 

duplicate, overlap, or conflict with the 

proposed rule. 

The Federal Property Management 

Regulation (FPMR) and the FMR published 

by the General Services Administration 

provide property management guidance to 

Government personnel. Some of the 

requirements of the FMR are implemented by 

the FAR in regard to contracts awarded to 

Federal contractors. The FPMR and FMR do 

not duplicate, overlap, or conflict with the 

proposed rule. 

6. Description of any significant 

alternatives to the proposed rule which 

accomplish the stated objectives of 

applicable statues and which minimize any 

significant economic impact of the proposed 

rule on small entities. 

There are no known alternatives to this 

proposed rule. However, the proposed rule 

should not have a significant adverse 

economic impact on a substantial number of 

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Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules 18499 

small entities. In fact, the current impact to 

both large and small contractors will be 

reduced. For example, the current FAR 

requires Government approval of contractor 

scrap procedures prior to allowing the 

contractor to dispose of ordinary production 

scrap. In addition, the current practice of 

requiring contractors (without approved 

scrap procedures) to submit inventory 

schedules or scrap lists for production scrap 

assumes that such practice is economically or 

otherwise justified in all cases. This practice 

unnecessarily burdens small contractors that 

generate only small amounts of scrap. 

This proposed rule removes the 

requirement for Government approvals of 

contractor scrap procedures and submitting 

inventory schedules and scrap lists, thus 

easing the burden on large and small 

contractors alike. It should be noted that 

contractor procedures would still be required 

and evaluated by the agency responsible for 

contract administration, as a normal part of 

contract property administration. The new 

rule will also result in more consistent levels 

of Government oversight, further easing the 

burden on small entities. 

The information required by the proposed 

rule has been reduced to the minimum 

necessary to assure compliance with the 

Government’s statutory accountability 

requirements. 

The Regulatory Secretariat will be 

submitting a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat. DoD, GSA, and 

NASA invite comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by this rule in 

accordance with 5 U.S.C. 610. Interested 

parties must submit such comments 

separately and should cite 5 U.S.C. 610 

(FAR Case 2010–009) in 

correspondence. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) applies because the 

proposed rule contains information 

collection requirements. Accordingly, 

the Regulatory Secretariat will submit a 

request for approval of a revised 

information collection requirement 

concerning Government Property to the 

Office of Management and Budget. 

Annual Reporting Burden: 

Public reporting burden for this 

collection of information is estimated to 

average .32 hours per response, 

including the time for reviewing 

instructions, searching existing data 

sources, gathering and maintaining the 

data needed, and completing and 

reviewing the collection of information. 

The annual reporting burden is 

estimated as follows: 

Respondents: 4,875. 

Responses per respondent: 910.26. 

Total annual responses: 4,437,518. 

Preparation hours per response: .32. 

Total response burden hours: 

1,420,006. 

V. Request for Comments Regarding 

Paperwork Burden 

Submit comments, including 

suggestions for reducing this burden, 

not later than June 3, 2011 to: FAR Desk 

Officer, OMB, Room 10102, NEOB, 

Washington, DC 20503, and a copy to 

the General Services Administration, 

Regulatory Secretariat (MVCB), ATTN: 

Hada Flowers, 1275 First Street, NE., 

7th Floor, Washington, DC 20417. 

Public comments are particularly 

invited on: Whether this collection of 

information is necessary for the proper 

performance of functions of the FAR, 

and will have practical utility; whether 

our estimate of the public burden of this 

collection of information is accurate, 

and based on valid assumptions and 

methodology; ways to enhance the 

quality, utility, and clarity of the 

information to be collected; and ways in 

which we can minimize the burden of 

the collection of information on those 

who are to respond, through the use of 

appropriate technological collection 

techniques or other forms of information 

technology. 

Requesters may obtain a copy of the 

supporting statement from the General 

Services Administration, Regulatory 

Secretariat (MVCB), 1275 First Street, 

NE., 7th Floor, Washington, DC 20417. 

Please cite OMB Control Number 9000– 

00XX, Government Property, in 

correspondence. 

List of Subjects in 48 CFR Parts 2, 31, 

32, 45, 49, 52, and 53 

Government procurement. 

Dated: March 24, 2011. 

Millisa Gary, 

Acting Director, Office of Governmentwide 

Acquisition Policy. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR parts 2, 31, 

32, 45, 49, 52, and 53 as set forth below: 

1. The authority citation for 48 CFR 

parts 2, 31, 32, 45, 49, 52, and 53 

continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 2—DEFINITIONS OF WORDS 

AND TERMS 

2. Amend section 2.101 in paragraph 

(b) by adding, in alphabetical order, the 

definition ‘‘Surplus property’’ to read as 

follows: 

2.101 Definitions. 

* * * * * 

(b) * * * 

Surplus property means excess 

personal property not required by any 

Federal agency as determined by the 

Administrator of the General Services 

Administration (GSA). See 41 CFR 102– 

36.40. 

* * * * * 

PART 31—CONTRACT COST 

PRINCIPLES AND PROCEDURES 

3. Amend section 31.205–19 by 

revising paragraphs (e)(2)(iv) 

introductory text, (e)(2)(iv)(A), and 

(e)(2)(iv)(C) to read as follows: 

31.205–19 Insurance and indemnification. 

* * * * * 

(e) * * * 

(2) * * * 

(iv) Costs of insurance for the risk of 

loss of Government property are 

allowable to the extent that— 

(A) The contractor is liable for such 

loss; 

* * * * * 

(C) Such insurance does not cover 

loss of Government property that results 

from willful misconduct or lack of good 

faith on the part of any of the 

contractor’s managerial personnel (as 

described in FAR 52.245–1(h)(1)(ii)). 

* * * * * 

PART 32—CONTRACT FINANCING 

4. Amend section 32.503–16 by 

revising the first sentence of paragraph 

(a) to read as follows: 

32.503–16 Risk of loss. 

(a) Under the Progress Payments 

clause, and except for normal spoilage, 

the contractor bears the risk of loss of 

Government property for property 

affected by the clause, even though title 

is vested in the Government, unless the 

Government has expressly assumed this 

risk. * * * 

* * * * * 

5. Amend section 32.1010 by revising 

the first sentence of paragraph (a) to 

read as follows: 

32.1010 Risk of loss. 

(a) Under the clause at 52.232–32, 

Performance-Based Payments, and 

except for normal spoilage, the 

contractor bears the risk of loss of 

Government property, even though title 

is vested in the Government, unless the 

Government has expressly assumed this 

risk. * * * 

* * * * * 

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18500 Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules 

PART 45—GOVERNMENT PROPERTY 

6. Revise section 45.000 to read as 

follows: 

45.000 Scope of part. 

(a) This part prescribes policies and 

procedures for providing Government 

property to contractors; contractors’ 

management and use of Government 

property; and reporting, redistributing, 

and disposing of contractor inventory. 

(b) It does not apply to— 

(1) Government property provided 

under any statutory leasing authority, 

except as to non-Government use of 

property under 45.301(f); 

(2) Property to which the Government 

has acquired a lien or title solely 

because of partial, advance, progress, or 

performance based payments; 

(3) Disposal of real property; 

(4) Software and intellectual property; 

or 

(5) Government property that is 

incidental to the place of performance, 

when the contract requires contractor 

personnel to be located on a 

Government site or installation, and 

when the property used by the 

contractor within the location remains 

accountable to the Government. Items 

considered to be incidental to the place 

of performance include, for example, 

office space, desks, chairs, telephones, 

computers, and fax machines. 

7. Amend section 45.101 by— 

a. Removing the definition 

‘‘Acquisition cost’’; 

b. Adding in alphabetical order the 

definitions ‘‘Loss of Government 

property’’, and ‘‘Production scrap’’; 

c. Removing the definition ‘‘Surplus 

property’’ and 

d. Adding in alphabetical order the 

definition ‘‘Unit acquisition cost’’. 

The added text reads as follows: 

45.101 Definitions. 

* * * * * 

Loss of Government property means 

unintended, unforeseen or accidental 

loss, damage, or destruction of 

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. 

* * * * * 

Production scrap means material left 

over from the normal production 

process that has only remelting or 

reprocessing value, e.g., textile and 

metal clippings, borings, and faulty 

castings and forgings. 

* * * * * 

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. 

8. Amend section 45.102 by adding 

paragraph (e) to read as follows: 

45.102 Policy. 

* * * * * 

(e) Government property, other than 

foundations and similar improvements 

necessary for installing special tooling, 

special test equipment, or equipment, 

shall not be installed or constructed on 

contractor-owned real property in such 

fashion as to become nonseverable, 

unless the head of the contracting 

activity determines that such 

installation or construction is necessary 

and in the Government’s interest. 

9. Amend section 45.104 by— 

a. Revising the introductory text of 

paragraph (a); 

b. Revising paragraph (b); and 

c. Adding paragraphs (d) and (e). 

The revised and added text reads as 

follows: 

45.104 Responsibility and liability for 

Government property. 

(a) Generally, contractors are not held 

liable for loss of Government property 

under the following types of contracts: 

* * * * * 

(b) The contracting officer may revoke 

the Government’s assumption of risk 

when the property administrator 

determines that the contractor’s 

property management practices are 

noncompliant with contract 

requirements. 

* * * * * 

(d) With respect to loss of 

Government property, the contracting 

officer, in consultation with the 

property administrator, shall 

determine— 

(1) The extent, if any, of contractor 

liability based upon the amount of 

damages corresponding to the 

associated lost property; and 

(2) The appropriate form and method 

of Government recovery (may include 

repair, replacement, or other 

restitution). 

(e) Any monies received as financial 

restitution shall be credited to the 

Treasury of the United States as 

miscellaneous receipts, unless 

otherwise authorized by statute (31 

U.S.C. 3302(b)). 

10. Amend section 45.105, by revising 

the first sentence of the introductory 

text of paragraph (b), and by revising 

paragraphs (b)(1) and (d) to read as 

follows: 

45.105 Contractors’ property management 

system compliance. 

* * * * * 

(b) The property administrator shall 

notify the contractor in writing when 

the contractor’s property management 

system does not comply with 

contractual requirements, shall request 

prompt correction of deficiencies, and 

shall request from the contractor a 

corrective action plan, including a 

schedule for correction of the 

deficiencies. * * * 

(1) Revocation of the Government’s 

assumption of risk for loss of 

Government property; and/or 

* * * * * 

(d) When the property administrator 

determines that a reported case of loss 

of Government property is a risk 

assumed by the Government, the 

property administrator shall notify the 

contractor in writing that they are 

granted relief of stewardship 

responsibility and liability in 

accordance with FAR clause 52.245– 

1(f)(1)(vii). Where the property 

administrator determines that the risk of 

loss of Government property is not 

assumed by the Government, the 

property administrator shall request that 

the contracting officer hold the 

contractor responsible and liable. 

11. Amend section 45.107 by— 

a. Revising paragraph (a)(1)(i); 

b. Removing from paragraph (b) 

‘‘service contracts’’ and adding ‘‘fixedprice service contracts’’ in its place; and 

c. Removing from paragraph (d) 

‘‘acquisition cost’’ and adding ‘‘unit 

acquisition cost’’ in its place. 

The revised text reads as follows: 

45.107 Contract clauses. 

(a)(1) * * * 

(i) All cost-reimbursement, time-andmaterial, and labor-hour type 

solicitations and contracts; and, when 

property is expected to be furnished for 

the labor-hour contracts. 

* * * * * 

12. Amend section 45.201 by— 

a. Removing from paragraph (a)(1) 

‘‘tracking and/or’’ and adding ‘‘tracking 

and management, and/or’’ in its place; 

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Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules 18501 

b. Removing from paragraph (a)(4) 

‘‘tracking); and’’ and adding ‘‘tracking 

and management); and’’ in its place; and 

c. Revising paragraph (c)(4). 

The revised text reads as follows: 

45.201 Solicitation. 

* * * * * 

(c) * * * 

(4) A description of the offeror’s 

property management system and any 

customary commercial practices, 

voluntary consensus standards, or 

industry leading practices and standards 

to be used by the offeror in managing 

Government property. 

* * * * * 

45.202 [Amended] 

13. Amend section 45.202 by 

removing from the first sentence of 

paragraph (a) ‘‘from the contractor’’ and 

adding ‘‘from an offeror or contractor’’ in 

its place. 

14. Amend section 45.602–1 by— 

a. Removing from paragraphs (b)(2) 

and (b)(3) ‘‘Require a contractor’’ and 

adding ‘‘Require the contractor’’ in its 

place; 

b. Removing from paragraph (b)(4) 

‘‘might entitle’’ and adding ‘‘may entitle’’ 

in its place; 

c. Revising the introductory text of 

paragraph (c) and the introductory text 

of paragraph (c)(1); 

d. Removing from paragraph (c)(1)(i) 

‘‘acquisition cost’’ and adding ‘‘unit 

acquisition cost’’ in its place; and 

e. Revising paragraph (c)(1)(iv). 

The revised text reads as follows: 

45.602–1 Inventory disposal schedules. 

* * * * * 

(c) The contractor may request the 

plant clearance officer’s approval to 

remove the Government property from 

an inventory schedule. 

(1) Plant clearance officers may 

approve removal of Government 

property from an inventory schedule 

when— 

* * * * * 

(iv) The contractor has requested 

continued use of the Government 

property, and the contracting officer has 

authorized its retention and further use. 

* * * * * 

15. Amend section 45.602–2 by— 

a. Revising the introductory text and 

paragraph (a); 

b. Removing paragraph (b); 

c. Redesignating paragraphs (c) and 

(d) as paragraphs (b) and (c), 

respectively; 

d. Removing from newly redesignated 

paragraph (b) ‘‘April 17, 1996),’’ and 

adding ‘‘April 17, 1996, and 15 U.S.C. 

3710(i);’’ in its place; 

e. Revising newly redesignated 

paragraph (c); 

f. Adding new paragraphs (d) and (e). 

The revised and added text reads as 

follows: 

45.602–2 Reutilization priorities. 

Plant clearance officers shall initiate 

reutilization actions for all property not 

meeting the abandonment or destruction 

criteria of 45.603(b). Authorized 

methods, listed in descending order 

from highest to lowest priority, are— 

(a) Reuse within the owning agency; 

* * * * * 

(c) Report to GSA for reuse within the 

Federal Government or donation as 

surplus property; 

(d) Dispose of the following property 

in accordance with agency procedures 

without reporting to GSA: 

(1) Property determined appropriate 

for abandonment or destruction (see 

FMR 102–36.305, 41 CFR 102–36.305). 

(2) Property furnished to 

nonappropriated fund activities 

property (see FMR 102–36.165, 41 CFR 

102–36.165). 

(3) Foreign excess personal property 

(see FMR 102–36.380, 41 CFR 102– 

36.380). 

(4) Scrap, except aircraft in scrap 

condition. 

(5) Perishables, defined for the 

purposes of this section as any personal 

property subject to spoilage or decay. 

(6) Trading stamps and bonus goods. 

(7) Hazardous waste or toxic and 

hazardous materials. 

(8) Controlled substances. 

(9) Property dangerous to public 

health and safety. 

(10) Classified items or property 

determined to be sensitive for reasons of 

national security; and 

(e) Dispose of nuclear materials (see 

45.603–3(b)(5)) in accordance with the 

Nuclear Regulatory Commission (NRC), 

applicable state licenses, applicable 

Federal regulations, and agency 

regulations. 

16. Revise section 45.603 to read as 

follows: 

45.603 Abandonment or destruction of 

personal property. 

(a) When contractor inventory is 

processed through the reutilization 

screening process prescribed in 45.602– 

2 without success, and provided the 

property has no commercial value, does 

not require demilitarization, and does 

not constitute a danger to public health 

or welfare, plant clearance officers or 

other authorized officials may without 

further approval— 

(1) Direct the contractor to destroy the 

property; 

(2) Abandon non-sensitive property at 

the contractor’s or sub-contractor’s 

premises; or 

(3) Abandon sensitive property at the 

contractor’s or sub-contractor’s 

premises, with contractor consent. 

(b) Provided a Government reviewing 

official at least one level higher than the 

plant clearance officer or other agency 

authorized official approves, plant 

clearance officers or other agency 

authorized officials may authorize the 

abandonment, or order the destruction 

of other contractor inventory at the 

contractor’s or sub-contractor’s 

premises, in accordance with FMR 102– 

36–305 through 325 and consistent with 

the following: 

(1) The property is not considered 

sensitive, does not require 

demilitarization, has no commercial 

value or reutilization, transfer or 

donation potential, and does not 

constitute a danger to public health or 

welfare. 

(2) The estimated cost of continued 

care and handling of the property 

(including advertising, storage and other 

costs associated with making the sale), 

exceed the estimated proceeds from its 

sale. 

(c) In lieu of abandonment or its 

authorized destruction, the plant 

clearance officer or authorized official 

may authorize the donation of property 

including unsold surplus property to 

public bodies, provided that the 

property is not sensitive property, does 

not require demilitarization, and it does 

not constitute a danger to public health 

or welfare. The Government will not 

bear any of the costs incident to such 

donations. 

(d) Unless the property qualifies for 

one of the exceptions under FMR 102– 

36.330 (41 CFR 102–36.330), the plant 

clearance officer or requesting official 

will ensure prior public notice of such 

actions of abandonment or destruction 

consistent with FMR 102–36.325 (41 

CFR 102–36.325). 

17. Revise the section heading of 

45.604 to read as follows: 

45.604 Sale of surplus personal property. 

* * * * * 

18. Revise section 45.604–1 to read as 

follows: 

45.604–1 Sales procedures. 

Surplus personal property that has 

completed screening in accordance with 

45.602–3(a) shall be sold in accordance 

with the policy for the sale of surplus 

personal property contained in the 

Federal Management Regulation, at Part 

102–38 (41 CFR part 102–38). Agencies 

may specify implementing procedures. 

45.604–2 [Removed] 

19. Remove section 45.604–2. 

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45.604–3 and 45.604–4 [Redesignated as 

45.604–2 and 45.604–3] 

20A. Redesignate sections 45.604–3 

and 45.604–4 as sections 45.604–2 and 

45.604–3, respectively. 

20B. Revise the newly redesignated 

section 45.604–2 to read as follows: 

45.604–2 Use of GSA sponsored sales 

centers. 

Agencies may use sales center 

services. Use of such centers for sale of 

surplus property is authorized when in 

the best interest of the Government, 

consistent with contract terms and 

conditions. 

21. Add section 45.604–4 to read as 

follows: 

45.604–4 Sale of property pursuant to the 

exchange/sale authority. 

Agencies should consider the sale of 

property pursuant to the exchange/sale 

authority in FMR 102–39 (41 CFR part 

102–39) when agencies are acquiring or 

plan to acquire similar products and 

other requirements of the authority are 

satisfied. 

22. Revise section 45.605 to read as 

follows: 

45.605 Inventory disposal reports. 

The plant clearance officer shall 

promptly prepare an SF 1424, Inventory 

Disposal Report, following disposition 

of the property identified on an 

inventory disposal schedule and the 

crediting of any related proceeds. The 

report shall identify any lost or 

otherwise unaccounted for property and 

any changes in quantity or value of the 

property made by the contractor after 

submission of the initial inventory 

disposal schedule. The report shall be 

provided to the administrative 

contracting officer or, for termination 

inventory, to the termination 

contracting officer, with a copy to the 

property administrator. 

23. Revise section 45.606–1 to read as 

follows: 

45.606–1 Contractor scrap procedures. 

(a) The property administrator should 

ensure that contractor scrap disposal 

processes, methods and practices allow 

for effective, efficient and proper 

disposition, and are properly 

documented in the contractor’s property 

management procedures. 

(b) The property administrator should 

determine the extent to which separate 

disposal processing or physical 

segregation for different scrap types is or 

may be required as early as possible, 

preferably during the solicitation phase. 

Such scrap may require physical 

segregation, unique disposal processing 

or separate plant clearance reporting. 

For example, the scope of work may 

create scrap— 

(1) Consisting of sensitive items; 

(2) Containing hazardous materials or 

wastes; 

(3) Contaminated with hazardous 

materials or wastes; 

(4) That is classified or otherwise 

controlled; 

(5) Containing precious or strategic 

metals; or 

(6) That is dangerous to public health 

or safety. 

(c) Absent contract terms and 

conditions to the contrary, the 

Government may abandon parts 

removed and replaced from property as 

a result of normal maintenance actions, 

or removed from property as a result of 

the repair, maintenance, overhaul, or 

modification process. 

45.606–2 and 45.606–3 [Removed] 

24. Remove sections 45.606–2 and 

45.606–3. 

PART 49—TERMINATION OF 

CONTRACTS 

49.204 [Amended] 

25. Amend section 49.204 by 

removing from paragraph (b) ‘‘destroyed, 

lost, stolen, or’’ and adding ‘‘lost or’’ in 

its place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

26. Amend section 52.232–16 by 

revising the date of the clause, and the 

last sentence of paragraph (e) to read as 

follows: 

52.232–16 Progress Payments. 

* * * * * 

Progress Payments (Date) 

* * * * * 

(e) * * * The Contractor shall repay the 

Government an amount equal to the 

unliquidated progress payments that are 

based on costs allocable to property that is 

lost (see 45.101). 

* * * * * 

27. Amend section 52.232–32 by 

revising the date of the clause, and the 

last sentence of paragraph (g) to read as 

follows: 

52.232–32 Performance-Based Payments. 

* * * * * 

Performance-Based Payments (Date) 

* * * * * 

(g) * * * If any property is lost (see 

45.101), the basis of payment (the events or 

performance criteria) to which the property 

is related shall be deemed to be not in 

compliance with the terms of the contract 

and not payable (if the property is part of or 

needed for performance), and the Contractor 

shall refund the related performance-based 

payments in accordance with paragraph (d) 

of this clause. 

* * * * * 

28. Amend section 52.245–1 by— 

a. Revising the date of the clause; 

b. Removing the definition 

‘‘Acquisition cost’’ from paragraph (a); 

c. Adding, in alphabetical order, the 

definitions, ‘‘Loss of Government 

property’’, and ‘‘Production scrap’’ to 

paragraph (a); 

d. Removing the definition ‘‘Surplus 

property’’ from paragraph (a); 

e. Adding, in alphabetical order, the 

definition ‘‘Unit acquisition cost’’ to 

paragraph (a); 

f. Revising paragraph (b)(1); 

g. Removing from paragraph (b)(2) ‘‘, 

stolen, damaged, or destroyed’’; 

h. Adding paragraph (b)(4); 

i. Removing from paragraph (f)(1)(ii) 

‘‘property (document the receipt)’’ and 

adding ‘‘property and document the 

receipt’’ in its place; 

j. Revising paragraphs (f)(1)(iii)(A)(1), 

(f)(1)(iii)(A)(10), (f)(1)(v)(A), (f)(1)(vi), 

and (f)(1)(vii); 

k. Removing from paragraph (f)(1)(x) 

‘‘loss, theft, damage, or destruction’’ and 

adding ‘‘loss of Government property’’ in 

its place; 

l. Removing from paragraph (f)(2) 

‘‘acquisitions’’ and adding ‘‘acquisitions, 

loss of Government property,’’ in its 

place; 

m. Removing paragraph (f)(3); 

n. Removing from paragraph (h)(1) 

introductory text ‘‘loss, theft, damage or 

destruction to the’’ and adding ‘‘loss of’’ 

in its place; 

o. Revising paragraph (h)(1)(ii), 

(h)(1)(iii), (h)(2), and (h)(3); 

p. Redesignating paragraph (h)(4) as 

paragraph (h)(5); 

q. Adding new paragraph (h)(4); 

r. Adding the words ‘‘or authorizing 

official’’ before the period at the end of 

the introductory text of paragraph (j); 

s. Removing paragraph (j)(1); 

t. Redesignating paragraphs (j)(2) 

through (j)(10) as paragraphs (j)(1) 

through (j)(9), respectively; 

u. Revising newly redesignated 

paragraphs (j)(1)(i), (j)(1)(ii), the 

introductory text of paragraph (j)(2)(i), 

(j)(2)(i)(A), (j)(2)(ii), and (j)(2)(iii), 

(j)(2)(iv)(C), and (j)(3); 

v. Removing from the first sentence of 

the newly redesignated paragraph 

(j)(6)(ii) the word ‘‘Government’’; 

w. Removing the newly redesignated 

paragraph (j)(7)(i); 

x. Further redesignating newly 

redesignated paragraphs (j)(7)(ii) and 

(j)(7)(iii) as (j)(7)(i) and (j)(7)(ii), 

respectively; 

y. Removing from the newly 

redesignated paragraph (j)(9) ‘‘paragraph 

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(j)(4)’’ and adding ‘‘paragraph (j)(3)’’ in 

its place; 

z. Removing from paragraphs (k)(1) 

and (k)(2) ‘‘Government property’’, 

respectively, and adding ‘‘property’’ in 

its place; 

aa. Redesignating paragraph (k)(3) as 

paragraph (k)(4); and adding a new 

paragraph (k)(3); 

bb. Removing from Alternate I ‘‘(Aug 

2010)’’ and adding ‘‘(Date)’’ in its place; 

and removing from paragraph (h)(1) of 

Alternate I ‘‘loss, theft, damage, or 

destruction,’’ and adding ‘‘loss’’ in its 

place; and 

cc. Removing from Alternate II ‘‘(June 

2007)’’ and adding ‘‘(Date)’’ in its place; 

and removing from the first and second 

sentences of paragraph (e)(3) of 

Alternate II ‘‘having an’’ and adding 

‘‘having a unit’’ in its place (two times). 

The added and revised text reads as 

follows: 

52.245–1 Government Property. 

* * * * * 

Government Property (Date) 

(a) * * * 

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. 

* * * * * 

Production scrap means material left over 

from the normal production process that has 

only remelting or reprocessing value, e.g., 

textile and metal clippings, borings, and 

faulty castings and forgings. 

* * * * * 

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) * * * 

(1) The Contractor shall have a system 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 control of Government property. 

Prior to implementation, the Contractor shall 

disclose to the Property Administrator any 

significant changes to their property 

management system. The Contractor may 

employ customary commercial practices, 

voluntary consensus standards and/or 

industry-leading practices and standards that 

provide effective Government property 

management that are necessary and 

appropriate for the performance of this 

contract (except where inconsistent with law 

or regulation). 

* * * * * 

(4) The Contractor shall establish and 

maintain procedures necessary to assess its 

property management system effectiveness, 

and shall perform periodic internal reviews 

and audits. Significant findings and/or 

results of such reviews and audits pertaining 

to Government property shall be made 

available to the Property Administrator. 

* * * * * 

(f) * * * 

(1) * * * 

(iii) * * * 

(A) * * * 

(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 required in accordance with the 

terms and conditions of the contract. 

* * * * * 

(10) Date placed in service (if required in 

accordance with the terms and conditions of 

the contract). 

* * * * * 

(v) * * * 

(A) The Contractor shall award 

subcontracts that clearly identify items to be 

provided or for fabricated items, the extent of 

any restrictions or limitations. The 

Contractor shall ensure appropriate flow 

down of contract terms and conditions (e.g., 

extent of liability for loss of Government 

property. 

* * * * * 

(vi) Reports. The Contractor shall have a 

process to create and provide reports of 

discrepancies, loss of Government property, 

physical inventory results, audits and selfassessments, 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 

report, upon recognition of loss of 

Government property, all such incidents of 

property loss, investigate and promptly 

furnish to the property administrator a 

written narrative of all incidents of such 

property loss as soon as the facts become 

known or when requested by the 

Government. 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 any reimbursement 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, hazardous or toxic 

material, and if so, that the appropriate 

agencies 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. 

* * * * * 

(h) * * * 

(1) * * * 

(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 

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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. 

* * * * * 

(j) * * * 

(1) * * * 

(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. In lieu 

of transferring the property, the Contracting 

Officer may authorize the Contractor to credit 

the costs of Contractor-acquired property 

(material only) to the losing contract, and 

debit the gaining contract with the 

corresponding cost, when such material is 

needed for use on another contract. Property 

no longer needed shall be considered 

contractor inventory. 

(ii) For any remaining Contractor-acquired 

property, the Contractor may purchase the 

property at the unit acquisition cost if 

desired or make reasonable efforts to return 

unused property to the appropriate supplier 

at fair market value (less, if applicable, a 

reasonable restocking fee that is consistent 

with the supplier’s customary practices.) 

(2) Inventory disposal schedules. (i) 

Provided the property was not reutilized, 

transferred, or otherwise disposed of under 

paragraph (j)(1) of this clause the Contractor, 

as directed by the Plant Clearance Officer 

shall use Standard Form 1428, Inventory 

Disposal Schedule or electronic equivalent, 

to identify and report— 

(A) Government-furnished property that is 

no longer required for performance of this 

contract; 

* * * * * 

(ii) The Contractor may annotate inventory 

disposal schedules to identify property the 

Contractor wishes to purchase from the 

Government, in the event that the property is 

offered for sale. 

(iii) Separate inventory disposal schedules 

are required for aircraft in any condition, 

flight safety critical aircraft parts, and other 

items as directed by the Plant Clearance 

Officer. 

(iv) * * * 

(C) For precious metals in raw or bulk 

form, the type of metal and estimated weight. 

* * * * * 

(3) Submission requirements. (i) The 

Contractor shall submit inventory disposal 

schedules to the Plant Clearance Officer no 

later than— 

(A) 30 days following the Contractor’s 

determination that a property item is no 

longer required for performance of this 

contract; 

(B) 60 days, or such longer period as may 

be approved by the Plant Clearance Officer, 

following completion of contract deliveries 

or performance; or 

(C) 120 days, or such longer period as may 

be approved by the Termination Contracting 

Officer, following contract termination in 

whole or in part. 

(ii) Unless the Plant Clearance Officer 

determines otherwise, the Contractor need 

not identify or report production scrap on 

inventory disposal schedules, and may 

process and dispose of production scrap in 

accordance with its own internal scrap 

procedures. The processing and disposal of 

other types of Government-owned scrap will 

be conducted in accordance with the terms 

and conditions of the contract or Plant 

Clearance Officer direction, as appropriate. 

* * * * * 

(k) * * * 

(3) Absent contract terms and conditions to 

the contrary, the Government may abandon 

parts removed and replaced from property as 

a result of normal maintenance actions, or 

removed from property as a result of the 

repair, maintenance, overhaul, or 

modification process. 

* * * * * 

29. Amend section 52.245–2 by 

revising the date of the clause, and 

paragraph (b) to read as follows: 

52.245–2 Government Property Installation 

Operation Services. 

* * * * * 

Government Property Installation 

Operation Services (Date) 

* * * * * 

(b) The Government bears no responsibility 

for repair or replacement of any lost 

Government property. If any or all of the 

Government property is lost, or becomes no 

longer usable, the Contractor shall be 

responsible for replacement of the property at 

Contractor expense. The Contractor shall 

have title to all replacement property and 

shall continue to be responsible for contract 

performance. 

* * * * * 

30. Amend section 52.249–2 by 

revising the date of the clause, and 

paragraph (h) to read as follows: 

52.249–2 Termination for Convenience of 

the Government (Fixed-Price). 

* * * * * 

Termination for Convenience of the 

Government (Fixed-Price) (Date) 

* * * * * 

(h) Except for normal spoilage, and except 

to the extent that the Government expressly 

assumed the risk of loss, the Contracting 

Officer shall exclude from the amounts 

payable to the Contractor under paragraph (g) 

of this clause, the fair value, as determined 

by the Contracting Officer, for the loss of the 

Government property. 

* * * * * 

31. Amend section 52.249–3 by 

revising the date of the clause, and 

paragraph (h) to read as follows: 

52.249–3 Termination for Convenience of 

the Government (Dismantling, Demolition, 

or Removal of Improvements). 

* * * * * 

Termination for Convenience of the 

Government (Dismantling, Demolition, 

or Removal of Improvements) (Date) 

* * * * * 

(h) Except for normal spoilage, and except 

to the extent that the Government expressly 

assumed the risk of loss, the Contracting 

Officer shall exclude from the amounts 

payable to the Contractor under paragraph (g) 

of this clause, the fair value, as determined 

by the Contracting Officer, for the loss of the 

Government property. 

* * * * * 

32. Revise section 52.251–1 to read as 

follows: 

52.251–1 Government Supply Sources. 

As prescribed in 51.107, insert the 

following clause: 

Government Supply Sources (Date) 

The Contracting Officer may issue the 

Contractor an authorization to use 

Government supply sources in the 

performance of this contract. Title to all 

property acquired by the Contractor under 

such an authorization shall vest in the 

Government. The provisions of the clause 

entitled ‘‘Government Property,’’ at 52.245–1, 

shall apply to all property acquired under 

such authorization. 

(End of clause) 

PART 53—FORMS 

33. Amend section 53.245 by revising 

paragraph (c) to read as follows: 

53.245 Government property. 

* * * * * 

(c) SF 1423 (Rev. 5/2004), Inventory 

Verification Survey. (See 45.602– 

1(b)(1).) 

* * * * * 

[FR Doc. 2011–7436 Filed 4–1–11; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 635 

RIN 0648–BA65 

Atlantic Highly Migratory Species; 

Atlantic Bluefin Tuna Quotas and 

Atlantic Tuna Fisheries Management 

Measures 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Notification of public hearing. 

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