52.245-9 Use and Charges.

As prescribed in 45.107(c), insert the following clause:

Use and Charges (Apr 2012)

(a) Definitions. Definitions applicable to this contract are provided in the clause at 52.245-1,

Government Property. Additional definitions as used in this clause include:

Rental period means the calendar period during which Government property is made available for

nongovernmental purposes.

Rental time means the number of hours, to the nearest whole hour, rented property is actually used

for nongovernmental purposes. It includes time to set up the property for such purposes, perform

required maintenance, and restore the property to its condition prior to rental (less normal wear and

tear).

(b) Use of Government property. The Contractor may use the Government property without charge

in the performance of-

(1) Contracts with the Government that specifically authorize such use without charge;

(2) Subcontracts of any tier under Government prime contracts if the Contracting Officer having

cognizance of the prime contract-

(i) Approves a subcontract specifically authorizing such use; or

(ii) Otherwise authorizes such use in writing; and

(3) Other work, if the Contracting Officer specifically authorizes in writing use without charge for

such work.

(c) Rental. If granted written permission by the Contracting Officer, or if it is specifically provided

for in the Schedule, the Contractor may use the Government property (except material) for a rental

fee for work other than that provided in paragraph (b) of this clause. Authorizing such use of the

Government property does not waive any rights of the Government to terminate the Contractor’s

right to use the Government property. The rental fee shall be determined in accordance with the

following paragraphs.

(d) General.

(1) Rental requests shall be submitted to the Administrative Contracting Officer (ACO), identify the

property for which rental is requested, propose a rental period, and compute an estimated rental

charge by using the Contractor’s best estimate of rental time in the formulae described in paragraph

(e) of this clause.

(2) The Contractor shall not use Government property for nongovernmental purposes, including

Independent Research and Development, until a rental charge for real property, or estimated rental

charge for other property, is agreed upon. Rented property shall be used only on a non-interference

basis.
(e) Rental charge.-

(1) Real property and associated fixtures.

(i) The Contractor shall obtain, at its expense, a property appraisal from an independent licensed,

accredited, or certified appraiser that computes a monthly, daily, or hourly rental rate for

comparable commercial property. The appraisal may be used to compute rentals under this clause

throughout its effective period or, if an effective period is not stated in the appraisal, for one year

following the date the appraisal was performed. The Contractor shall submit the appraisal to the

ACO at least 30 days prior to the date the property is needed for nongovernmental use. Except as

provided in paragraph (e)(1)(iii) of this clause, the ACO shall use the appraisal rental rate to

determine a reasonable rental charge.

(ii) Rental charges shall be determined by multiplying the rental time by the appraisal rental rate

expressed as a rate per hour. Monthly or daily appraisal rental rates shall be divided by 720 or 24,

respectively, to determine an hourly rental rate.

(iii) When the ACO believes the appraisal rental rate is unreasonable, the ACO shall promptly notify

the Contractor. The parties may agree on an alternative means for computing a reasonable rental

charge.

(iv) The Contractor shall obtain, at its expense, additional property appraisals in the same manner as

provided in paragraph (e)(1)(i) if the effective period has expired and the Contractor desires the

continued use of property for nongovernmental use. The Contractor may obtain additional appraisals

within the effective period of the current appraisal if the market prices decrease substantially.

(2) Other Government property. The Contractor may elect to compute the rental charge using the

appraisal method described in paragraph (e)(1) of this clause subject to the constraints therein or

the following formula in which rental time shall be expressed in increments of not less than one hour

with portions of hours rounded to the next higher hour: The hourly rental charge is calculated by

multiplying 2 percent of the acquisition cost by the hours of rental time, and dividing by 720.

(3) Alternative methodology. The Contractor may request consideration of an alternative basis for

computing the rental charge if it considers the monthly rental rate or a time-based rental

unreasonable or impractical.

(f) Rental payments.

(1) Rent is due 60 days following completion of the rental period or as otherwise specified in the

contract. The Contractor shall compute the rental due, and furnish records or other supporting data

in sufficient detail to permit the ACO to verify the rental time and computation. Payment shall be

made by check payable to the Treasurer of the United States and sent to the contract administration

office identified in this contract, unless otherwise specified by the Contracting Officer.

(2) Interest will be charged if payment is not made by the date specified in paragraph (f)(1) of this

clause. Interest will accrue at the "Renegotiation Board Interest Rate" (published in theFederal

Register semiannually on or about January 1 st and July 1 st) for the period in which the rent is due.

(3) The Government’s acceptance of any rental payment under this clause, in whole or in part, shall

not be construed as a waiver or relinquishment of any rights it may have against the Contractor

stemming from the Contractor’s unauthorized use of Government property or any other failure to

perform this contract according to its terms.
(g) Use revocation. At any time during the rental period, the Government may revoke

nongovernmental use authorization and require the Contractor, at the Contractor’s expense, to

return the property to the Government, restore the property to its prerental condition (less normal

wear and tear), or both.

(h) Unauthorized use. The unauthorized use of Government property can subject a person to fines,

imprisonment, or both, under 18 U.S.C. 641.

(End of clause)

Parent topic: 52.245 [Reserved]