Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Rules and Regulations 2001 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1845 and 1852 

RIN 2700–AD37 

Government Property 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Final rule. 

SUMMARY: NASA is issuing a final rule 

to revise the NASA FAR Supplement 

(NFS) to update Agency-level, propertyrelated provisions, clauses, 

prescriptions and procedures to be 

consistent with changes made to Part 45 

and Part 52.245 of the Federal 

Acquisition Regulation in Federal 

Acquisition Circular (FAC) 2005–17. 

FAC 2005–17 significantly rewrote FAR 

Part 45, Government Property, and 

changed property related definitions, 

provisions and clauses which are 

required to be used in all solicitations 

and contracts issued after the effective 

date of 14 June, 2007. 

DATES: Effective Date: January 12, 2011. 

FOR FURTHER INFORMATION CONTACT: Carl 

Weber, NASA, Office of Procurement, 

Contract Management Division (Suite 

5K80), (202) 358–1784, e-mail: 

carl.c.weber@nasa.gov. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Federal Acquisition Circular (FAC 

2005–17) implemented the final rule 

amending the Federal Acquisition 

Regulation (FAR) to simplify 

procedures, clarify language, and 

eliminate obsolete requirements related 

to the management and disposition of 

Government property in the possession 

of contractors. FAC 2005–17 

significantly rewrote FAR Part 45, 

Government Property, and changed 

property-related definitions, provisions 

and clauses which are required to be 

used in all solicitations and contracts 

issued after the effective date of 14 June, 

2007. The purpose of this final rule is 

to establish a new NASA FAR 

Supplement (NFS) Part 1845, 

Government Property, and related 

Agency-level solicitation provisions and 

contract clauses in NFS Subpart 

1852.245, that are consistent with the 

rewrite of FAR Part 45. This rewrite of 

NFS Part 1845 and Subpart 1852.245 

realigns Agency regulations with the 

new definitions, practices and policy of 

the FAR, a policy that fosters efficiency, 

flexibility, innovation and creativity 

while continuing to protect the 

Government’s interest. In addition, this 

final rule includes Agency-level 

procedures, solicitation provisions, and 

contract clause language necessary to 

identify contractor-acquired assets 

which become capital assets of the 

Government, in order to comply with 

Statement of Federal Financial 

Accounting Standard (SFFAS) No. 6. 

NASA published a proposed rule at 73 

FR 73202, December 2, 2008. The 60 

day comment period for the proposed 

rule ended February 2, 2009. Three 

respondents provided comments for a 

total of 52 comments. 

The public comments were 

considered by NASA in the formation of 

the final rule. 

Comment 1: One respondent 

recommended that language in 

1845.107–70(B)(5) be clarified to 

differentiate between government 

property acquired which the 

government has title to and property 

acquired under FAR 52.245–1 Alt 2, 

which is titled to the contractor. 

Response: Concur. The word 

‘‘Government’’ was appended to 

‘‘property’’ in the language to 

differentiate between property acquired 

and titled to the contractor under the 

alternate and property titled to the 

Government. 

Comment 2: One respondent 

recommended that the phrase ‘‘IPO’s 

Center for transfer to the’’ be added to 

1852.245–70, Alternate I as follows: (ii) 

If the Contractor determines that an item 

within NASA or Federal excess is 

suitable, it shall contact the Center 

Industrial Property Officer (IPO) to 

arrange for transfer of the item from the 

identified source to the IPO’s Center for 

transfer to the contractor. 

Response: Non-concur. With the 

issuance of the final rule, the process in 

Procurement Information Circular 05–07 

will become obsolete. The process 

suggested is internal to NASA and 

would be addressed through Part 1845, 

and not thorough contract language. 

NASA may choose a variety of methods 

to effect a transfer. 

Comment 3: One respondent 

recommended establishing a threshold 

for screening greater than $10,000 for 

items of property proposed for 

acquisition by institutions of higher 

education and allowing institutions to 

reject items if they are not technically 

sufficient. 

Response: Non-concur. FAR Part 8 

and 40 U.S.C. 524 require screening of 

agency inventory and other agencies’ 

excess prior to new acquisitions 

whenever practicable. Though the 

screening practice may not always be 

productive, screening activity is not 

impracticable; therefore, we are required 

to perform it. 

Comment 4: One respondent 

recommended changing the date for 

report submission at 1852.245–73(c)(1) 

from October 15 to October 30. 

Response: Non-concur. The October 

15 date is needed to allow sufficient 

time for contractor held property values 

to be compiled into NASA’s annual 

financial statement. 

Comment 5: One respondent 

recommended modifying 1852.245– 

79(c) to change the phrase ‘‘Governmentfurnished property’’ to ‘‘Government 

Property’’ to clarify that it applies to 

both Government-furnished and 

Contractor Acquired Government 

property. 

Response: Concur. Change made. 

Comment 6: One respondent 

recommended modifying 1852.245– 

79(c) to change ‘‘approval of the NASA 

Industrial Property Officer to ‘‘approval 

of the Plant Clearance Officer’’. 

Response: Concur. Change made. 

Comment 7: One respondent 

recommended that the reference to 

‘‘Industrial Property Officer or Property 

Administrator’’ in 1845.501–70(b) be 

changed to only reference ‘‘Government 

Property Administrator’’. 

Response: Non-concur. Within NASA, 

the Industrial Property Officer is the 

integral link between the contracting 

functions and the property 

administration functions and serves as 

the advisor to the Contracting Officer on 

property related topics. The reference to 

the Industrial Property Officer and 

Property Administrator will remain. 

Comment 8: One respondent 

recommended that 1845.501–70(b) be 

changed to reflect that the Contracting 

Officer makes the final determination as 

to the adequacy of the contractor’s 

proposed property management 

systems, standards and practices based 

on various inputs, including those of the 

Property Administrator and Industrial 

Property Officer. 

Response: Concur. Language changed 

accordingly. 

Comment 9: One respondent 

recommended that the reference to 

‘‘Industrial Property Officer or Property 

Administrator’’ at 1845.501–70(b)(1) be 

changed to reference only the Property 

Administrator. 

Response: Non-concur. NASA 

contracts may operate under 

circumstances that are unknown to the 

property administrator or differ from 

those applied by the property 

administrator’s own organization. 

Within NASA, the Industrial Property 

Officer is the integral link between the 

contracting functions and the property 

administration functions and serves as 

the advisor to the Contracting Officer on 

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property related topics. Original 

language left intact. 

Comment 10: One respondent 

recommended that DCMA’s PCARSS 

system be used for all NASA contracts. 

Response: Non-concur: NASA does 

not share all contractors with DOD. As 

a result, NASA may need to disposition 

property outside of PCARSS. Further, 

NASA, as a separate Federal agency 

maintains its own disposal processes 

and may choose to use them when it is 

in the agency’s best interest. 

Comment 11: One respondent 

recommended simplification of 

paragraph (a) of 1845.7101–2. 

Response: Paragraph (a) of 1845.7101– 

2 was not proposed to be changed in the 

proposed rule, and was not published 

for comment, but may be reviewed for 

change in the future. 

Comment 12: One respondent 

recommended that 1845–7101–2(c) be 

revised to incorporate a proactive 

approach to identification and 

correction of property data, though no 

specific language was provided. 

Response: Non-concur. The NASA 

proposed changes to this paragraph 

were made only to omit obsolete FAR 

citations and the paragraph is otherwise 

still applicable. While the CO may take 

proactive measures to develop data for 

property being transferred, this remains 

an alternative procedure to be used 

when data is found to be insufficient by 

the contractor. 

Comment 13: One respondent 

recommended deleting the entire clause 

at 1852.245–70. 

Response: Partially concur. The 

requirement for screening for property 

for reuse is based on law, and therefore 

cannot be eliminated. In addition, the 

FAR requires the contracting officer to 

determine whether it is in the best 

interest for the Government to provide 

property. The scope of the clause was, 

however, limited to equipment 

requested after award. 

Comment 14: One respondent 

recommended that we remove the 

requirement for contractors to hold 

employees liable for LDD&T as specified 

at 1852.245–71(a). Collective bargaining 

agreements, labor relations laws, State 

and local law may prohibit holding an 

employee liable for LDD&T of 

Government owned property. 

Response: Partially concur. Although 

the language was unchanged from the 

previous NFS clause, and the liability 

requirement was ameliorated by the 

phrase ‘‘as appropriate’’, the language 

will be changed to read: ‘‘In accordance 

with FAR 52.245–1(h)(1) the contractor 

shall be liable for property lost, 

damaged, destroyed or stolen by the 

contractor or their employees when 

determined responsible by a NASA 

Property Survey Board, in accordance 

with the NASA guidance in this clause.’’ 

Comment 15: One respondent 

recommended that the language at 

1852.245–71(b)(iii) be changed so that it 

is clear that contractors are not required 

to establish a property record until the 

property is titled to the government. 

Response: Concur. 1852.245–71(b)(iii) 

is changed to read: ‘‘The Contractor shall 

establish a record for Government titled 

property as required by FAR 52.245–1 

and shall maintain that record until 

accountability is accepted by the 

Government.’’ The final sentence of the 

paragraph is deleted. 

Comment 16: One respondent 

recommended that NASA rewrite the 

clause at 1852.245–72 to utilize DOD 

condition codes F, J and K in 

determining whether property is 

‘‘economically repairable’’. 

Response: Non-concur. The economic 

repair codes suggested by the contractor 

are Department of Defense codes not 

applicable to NASA. NASA utilizes its 

own criteria to determine whether it is 

economically feasible to repair items. 

Comment 17: One respondent 

recommended revising the language at 

1852.245–72(c) to make liability for 

Government property furnished more 

consistent with FAR 52.245–1(h)(i) and 

commercial practices. 

Response: Concur. The phrase ‘‘or 

when sustained while the property is 

being worked upon and directly 

resulting from that work, including but 

not limited to, any repairing, adjusting, 

inspecting, servicing, or maintenance 

operation.’’ is deleted from the first 

sentence of paragraph (c) of 1852.245– 

72. 

Comment 18: One respondent 

recommended deleting paragraph (d) of 

1852.245–72, regarding insurance 

requirements since in conflict with FAR 

Part 45. 

Response: Concur. Paragraph (d) 

deleted. 

Comment 19: One respondent 

recommended deleting the clause at 

1852.245–73. 

Response: Non-concur. The reporting 

requirements of this clause were not 

added or significantly altered in the 

proposed rule. NASA requires 

submission of this report to support 

generation of its financial statement and 

other Government financial 

management reporting requirements. 

Financial reporting requirements of 

NASA property in the custody of 

contractors may be revised in the future 

based on advances in electronic 

accounting and reporting systems, and 

public comment will be solicited. 

Comment 20: One respondent 

recommended eliminating the UID 

number and Data matrix ID symbols 

requirements contained in the clause at 

1852.245–74 for research and 

development contracts with higher 

education, non-profit organizations. 

Response: Partially Concur. NASA 

requires identification to assure that its 

property is adequately managed and 

controlled. However, language has been 

added to allow performing entities to 

propose alternate, commercial methods 

of durable marking that retain the data 

required by the above standards. Such 

alternate methods may be used if 

approved by the NASA Industrial 

Property Officer. 

Comment 21: One respondent 

recommended moving the clause at 

1852.245–74 to 1852.211–XX for 

consistency with the FAR, and that a 

dollar threshold be established below 

which marking would not be required. 

Response: Partially concur. This is a 

property specific requirement limited to 

equipment items to be delivered to the 

Government. While a threshold is not 

acceptable to NASA, material and 

Special Tooling are not included in this 

requirement, thereby eliminating many 

low dollar items from the requirement. 

Equipment is well defined in FAR. It 

is not applicable to items used by the 

contractor unless those items are no 

longer required and instructions require 

delivery to the Government. NASA does 

wish to apply this to equipment 

produced for delivery to the 

Government. NASA intends that this 

clause will assist the administration in 

the identification and control of 

equipment items that qualify for 

internal management recordkeeping and 

controls on delivery to the agency. 

Comment 22: One respondent 

recommended that the term ‘‘item’’ be 

substituted for the term ‘‘equipment’’ 

throughout the clause at 1852.245–74. 

Response: Non-concur. The 

requirements in this clause are intended 

to apply to ‘‘equipment’’ as defined in 

FAR Part 45. The term ‘‘item’’ could 

have a much broader meaning, 

including such things as ‘‘parts’’ and 

‘‘items of material’’ NASA does not 

intend to apply this requirement to 

materials (parts). Rather, it is intended 

for equipment only, hence the 

terminology used. 

Comment 23: One respondent 

recommended that NASA utilize DOD’s 

MIL STD 130 and related DOD 

infrastructure as the basis for its 

‘‘Identifications and Markings. * * *’’ 

clause at 1852.245–74. 

Response: Partially concur. NASA has 

modified the clause language to allow 

the use of commercially produced 

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markings when those markings 

otherwise comply with the data and 

legibility requirements of the NASA 

standard. 

Comment 24: One respondent 

recommended that 1852.245–74(c) 

include additional, specific instructions 

on what needs to be marked and those 

instructions be included in the contract. 

In addition, the respondent commented 

that the reporting requirements would 

be in addition to standard FAR 

requirements. 

Response: Non-concur. NASA intends 

the use of these identification 

requirements only on delivered or 

transferred equipment. Instructions in 

the clause are sufficient to define its 

applicability. 

Comment 25: One respondent 

recommended that the phrase ‘‘For Items 

physically transferred’’ in paragraph (d) 

of 1852.245–74 be clarified. 

Response: Partially concur. Language 

is changed to clarify by adding the 

phrase, ‘‘equipment no longer required 

for contract performance.’’ in paragraphs 

(a) and (d). 

Comment 26: One respondent 

recommended deleting the requirement 

to provide item condition at 1852.245– 

74(d)(2) since condition code is not 

required by the FAR clause at 52.245– 

1. 

Response: Partially concur. Condition 

codes are discussed within the FAR 

Property Clause at 52.245–1(j)(3)(iv) and 

are normally ascertained by the 

contractor at the time the items are no 

longer required for contract 

performance. Clause language is 

changed to implement condition codes 

used at time of disposal. 

Comment 27: One respondent 

recommended deleting the requirement 

to provide ‘‘date last serviced’’ at 

1852.245–74(d)(3). 

Response: Concur. Requirement is 

deleted. 

Comment 28: One respondent 

recommended replacing the term 

‘‘equipment’’ in paragraph (f) of 

1852.245–74 with the term ‘‘an end 

item’’ to standardize terminology 

throughout rule. 

Response: Non-concur. NASA has 

standardized terminology on the term 

‘‘equipment’’. 

Comment 29: One respondent 

recommended deleting the clause at 

1852.245–75, stating ‘‘portions are 

repetitive of the FAR requirements.’’ 

Response: Non-concur. This clause 

clarifies the term ‘‘significant’’ in the 

FAR clause at 52.245–1(b)(1) to ensure 

NASA is notified when contractor 

changes may increase risk to property 

and contract performance. 

Comment 30: One respondent 

recommended the single point of 

contact referenced in paragraph (a) of 

1852.245–75 be the Property 

Administrator. 

Response: Partially concur. While the 

NASA Industrial Property Officer must 

be advised of significant changes as 

defined in this clause, the Property 

Administrator will be the single source 

for direction to the contractor regarding 

the acceptability of proposed changes. 

Comment 31: One Respondent 

suggested that sub paragraphs (a)(1), (2), 

& (3) of the proposed clause at 

1852.245–75 were written too broadly in 

an attempt to clarify the phrase ‘‘the 

Contractor shall disclose any significant 

changes to their property management 

system’’ at FAR 52.245–1(b)(1). 

Response: Non-concur. This language 

provides more specific descriptions of 

what constitutes a ‘‘significant change’’ 

to a contractor’s property management 

system as stated in FAR 52.245–1(b). 

The more specific language was written 

to ensure that NASA is notified when 

contractor changes may increase risk to 

property and risk to contract 

performance. 

Comment 32: One respondent 

recommended that since the FAR states 

that any ‘‘significant’’ changes be 

disclosed to the Property Administrator 

(PA), the single point of contact should 

be PA in paragraph (b) the proposed 

rule at 1852.245–75. 

Response: Partially concur. While the 

NASA Industrial Property Officer must 

be advised of significant changes as 

defined in this clause, the Property 

Administrator will be the single source 

for direction to the contractor regarding 

the acceptability of proposed changes. 

Comment 33: One respondent 

suggested adding language allowing the 

contractor to acquire property identified 

in their proposal in response to the 

provision at 1852.245–80 without 

further approval. 

Response: Concur. Such language will 

be added to the clause at 1852.245–70. 

Comment 34: One respondent 

suggested adding the dates for FAR 

clauses referenced in the NASA FAR 

supplement Clauses. 

Response: Partially concur. Wherever 

FAR clauses are referenced in NASA 

FAR Supplement (NFS) clauses, the 

date of the FAR clause will be included 

at least once in the same clause, or the 

reference may use the language ‘‘FAR 

52.245–X, as incorporated in this 

contract’’. 

Comment 35: One respondent 

recommended deleting the clause at 

1852.245–78, Physical Inventory of 

Capital Personal Property, suggesting 

the clause is overly prescriptive and 

goes beyond industry and other 

government standards. The respondent 

further suggested, that in accordance 

with NASA’s own accounting rules, 

property with an acquisition value of 

more than $100,000 would not 

necessarily be considered a capital 

asset. 

Response: Partially-concur. NASA 

believes the clause, and the specific 

annual physical inventory requirements 

required by the clause for high value 

items, are necessary to ensure the 

existence and completeness of inventory 

records associated with such items that 

may be included in NASA’s financial 

statements as capital assets. The 

$100,000 threshold was chosen since it 

matches one of the base criteria used to 

determine an item as a capital asset. 

Since as the respondent suggests, 

contractors shouldn’t and couldn’t 

determine which items greater than 

$100,000 were considered NASA 

Capital assets, the dollar threshold alone 

is used as a demarcation for ease of use 

by the contractor. Further, ASTM 

Standards allow for stratified 

inventories, as high value items may 

require more visibility than low value 

items. 

Comment 36: One respondent 

recommended removing the 

requirement at 1852.245–78(a)(2) to use 

inventory results to validate the 

‘‘condition and use status’’ in property 

record data, since inventory personnel 

rarely have the skill to determine 

condition of property and condition is 

generally determined at time of 

disposition. 

Response: Partially concur. The 

requirement to validate ‘‘condition’’ and 

use are removed, however, the 

requirement to verify the existence of 

the items and the completeness of the 

records were restated. 

Comment 37: One respondent 

suggested that the FAR deleted the 

requirement for ‘‘separation of duties’’ 

(inventory to be performed by 

individuals other than those assigned 

custody, or responsibility for 

maintenance or posting); likewise, 

NASA should delete the requirement for 

‘‘separation of duties’’ at 1852.245–78(b). 

Response: Non-concur. ASTM 

Standards and GAO Best Practices 

recommend separation of duties either 

physically or by technologic means. 

This rule allows for either. 

Comment 38: One respondent 

recommended deleting the prohibition 

for manual entry of data at 1852.245– 

78(b)(1) when an electronic property 

identification systems is utilized. 

Response: Non-concur. Allowing 

manual entry of critical data would 

permit tampering with existence and 

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completeness records and would negate 

the ‘‘separation of duties’’ benefit 

derived from software controls. 

Comment 39: One Respondent 

recommended deleting the condition at 

1852.245–78(b)(2)(ii) since it wasn’t 

relevant to physical inventory. 

Response: Concur. Deleted. 

Comment 40: One Respondent 

recommended deleting the requirement 

at 1852.245–78(b)(3) for the contractor 

to obtain approval for waivers from the 

NASA IPO, and substituting approval 

from the Property Administrator. 

Response: Concur. Waivers will be 

required to be submitted to and 

approved by the Property 

Administrator. NASA will accomplish 

desired IPO notification and 

concurrence requirements through 

delegation instructions to the Property 

administrator. 

Comment 41: One respondent 

suggested that the requirement at 

1852.245–78(c) to deliver the physical 

inventory report within 10-calendar 

days of completion of the physical 

inventory was not sufficient time 

considering time needed for 

reconciliation. 

Response: Non-concur. 10 calendar 

days is sufficient time. NASA considers 

the reconciliation process to be 

included as part of the physical 

inventory process. 

Comment 42: One respondent 

recommended that the requirement at 

1852.245–78(c) to report the results of 

the physical inventory to the NASA IPO 

be changed to the Property 

Administrator. 

Response: Concur. Language changed. 

Comment 43: One Respondent 

recommended standardizing the ‘‘loss, 

damage or destruction * * *’’ language 

at 1852.245–71(c)(2)(i) with the FAR 

language in 52,245–1. 

Response: Concur. Language changed 

to ‘‘Loss, damage, destruction or theft 

***’’ 

Comment 44: One respondent 

recommended changing the requirement 

at 1852.245–78(d) for the Contractor to 

retain ‘‘all physical inventory records’’ to 

‘‘pertinent physical inventory records’’. 

Response: Partially-concur. Language 

changed to require the Contractor to 

‘‘retain auditable physical inventory 

records’’. 

Comment 45: One respondent 

recommended deleting the clause at 

1852.245–79, Records and Disposition 

Reports for Government Property with 

Potential Historic or Significant Real 

Value. 

Response: Non-concur. NASA 

believes this clause is necessary to 

ensure there are complete records for 

high value or historic value items. 

Comment 46: One respondent 

suggested that the first two sentences of 

paragraph (a) of the clause at 1852.245– 

79 were ‘‘commentary’’ in nature and 

should be deleted. 

Response: Concur. Sentences delete. 

Comment 47: One respondent 

recommended changing the requirement 

for the Contractor to obtain approval 

from the NASA IPO to approval from 

the Property Administrator at 1852.245– 

79(c). 

Response: Concur. Approval 

requirement changed from NASA IPO to 

Property administrator. 

Comment 48: One respondent 

suggested that the provision at 

1852.245–80, Government Property 

Management Information, was a 

duplicate of requirements in FAR Part 

45. 

Response: Noted. This provision 

implements requirements in FAR Part 

45 by providing specific language for 

NASA Contracting Officers to include in 

NASA Solicitations. 

Comment 49: One respondent 

recommended deleting paragraph (e) of 

the provision at 1852.245–80, since 

contractors must otherwise comply with 

CAS 402 which defines direct costs. 

Response: Partially-concur. NASA 

agrees that compliance with CAS and 

the contractor’s disclosure statement 

will determine how a particular cost can 

be allocated. The provision only 

requires the contractor to disclose in the 

proposal any such accounting practices. 

Comment 50: One respondent 

recommended limiting the scope of 

paragraph (g) of 1852.245–80 to items 

valued over $100,000, and eliminating 

the requirement for detailed information 

on the items. 

Response: Partially-concur. Items 

below $100,000 will still be required to 

be listed; however, detail will be limited 

to a description of the intended end 

item and its estimated value. 

Comment 51: One respondent 

recommended changing the prescription 

at 1852.245–81 from ‘‘insert the 

following provision’’ to ‘‘insert the 

following clause’’. 

Response: Non-concur. The 

Prescription references a solicitation 

provision. 

Comment 52: One respondent 

recommended inserting the date for the 

FAR clause referenced at 1852.245– 

81(b). 

Response: Concur. Date inserted. 

This is not a significant regulatory 

action and, therefore, is not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

final rule is not a major rule under 5 

U.S.C. 804. 

B. Regulatory Flexibility Act 

NASA certifies that this final rule will 

not 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 it largely implements changes 

to the FAR Parts 45 and 52.245 set forth 

in FAC 2005–17, and does not impose 

an significant economic impact beyond 

that addressed in the FAC 2005–17 

publication of the FAR final rule. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act (Pub. 

L. 104–13) is applicable. However, the 

NFS changes do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501, et 

seq. beyond those identified and 

approved as part of the FAR Part 45 

rewrite contained in FAC 2005–17 (Ref 

OMB control no. 9000–0075) and those 

previously approved under NASA 

clearances (Ref OMB control nos. 2700– 

0017, 2700–0088, and 2700–0089) 

List of Subjects in 48 CFR Parts 1845 

and 1852 

Government procurement, 

Government property. 

William P. McNally, 

Assistant Administrator for Procurement. 

■ Accordingly, 48 CFR parts 1845 and 

1852 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 1845 and 1852 continues to read 

as follows: 

Authority: 42 U.S.C. 2455(a), 2473(c)(1). 

PART 1845—GOVERNMENT 

PROPERTY 

■ 2. Subpart 1845.1 is revised to read as 

follows: 

Subpart 1845.1—General 

1845.107 Contract clauses. 

1845.107–70 NASA solicitation provisions 

and contract clauses. 

(a)(1) The contracting officer shall 

insert the clause at 1852.245–70, 

Contractor Requests for GovernmentProvided Property, in cost 

reimbursement solicitations and 

contracts. 

(2) Use the clause with its Alternate 

I when the center Supply and 

Equipment Management Officer (SEMO) 

consents to permit the contractor to 

screen Government inventory for 

available property in lieu of contractor 

acquisition of new items. 

(b)(1) The contracting officer shall 

insert the clause at 1852.245–71, 

Installation—Accountable Government 

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Property, in solicitations and contracts 

when Government property is to be 

made available to a contractor working 

on a NASA installation, and the 

Government will maintain 

accountability for the property. The 

contracting officer shall list in the 

clause the applicable property user 

responsibilities. For purposes of this 

clause, NASA installations include local 

off-site buildings owned or leased by 

NASA. 

(2) Use of this clause is subject to the 

SEMO’s concurrence that adequate 

Government property management 

resources are available for oversight of 

the property in accordance with all 

applicable NASA installation property 

management directives. 

(3) The contracting officer shall 

identify, in the contract, the nature, 

quantity, and acquisition cost of the 

property and make it available on a 

nocharge basis. 

(4) The contracting officer shall use 

the clause with its Alternate I if the 

SEMO requests that the contractor be 

restricted from use of the center central 

receiving facility for the purposes of 

receiving contractor-acquired property. 

(5) For contractors with both onsite 

and offsite performance requirements, 

contracting officers shall list 

Government property provided for 

offsite use separately in the contract. 

This Government property is furnished 

under FAR 52.245–1, Government 

Property, and remains accountable to 

the contractor during its use on the 

contract. This Government property is 

not subject to the clause at 1852.245–71, 

Installation—Accountable Government 

Property. The contracting officer shall 

address any specific maintenance 

considerations (e.g., requiring or 

precluding use of an installation 

calibration or repair facility) elsewhere 

in the contract. 

(c) The contracting officer shall insert 

the clause at 1852.245–72, Liability for 

e Government Property Furnished for 

Repair or Other Services, in fixed-price, 

time-and-material, and labor-hour 

solicitations and contracts (except for 

experimental, developmental, or 

research work with educational or 

nonprofit institutions, where no profit is 

contemplated) for repair, modification, 

rehabilitation, or other servicing of 

Government property, if such property 

is to be furnished to a contractor for that 

purpose and no other Government 

property is to be furnished. The 

contracting officer shall not require 

additional insurance under the clause 

unless the circumstances clearly 

indicate advantages to the Government. 

(d) The contracting officer shall insert 

the clause at 1852.245–73, Financial 

Reporting of NASA Property in the 

Custody of Contractors, in cost 

reimbursement solicitations and 

contracts unless all property to be 

provided is subject to the clause at 

1852.245–71, Installation—Accountable 

Government Property. The clause shall 

also be included in other types of 

solicitations and contracts when it is 

known at award that property will be 

provided to the contractor or that the 

contractor will acquire property title to 

which will vest in the Government prior 

to delivery. 

(e) The contracting officer shall insert 

the clause at 1852.245–74, Identification 

and Marking of Government Property, in 

solicitations and contracts that— 

(1) Include the clause at FAR 52.245– 

1; or 

(2) Require the delivery of supplies. 

(f) The contracting officer shall insert 

the clause at 1852.245–75, Property 

Management Changes, in solicitations 

and contracts that provide for progress 

payments or include any of the property 

clauses prescribed in FAR Part 45. 

(g) The contracting officer shall insert 

the clause at 1852.245–76, List of 

Government Property Furnished 

Pursuant to FAR 52.245–1, in 

solicitations and contracts when the 

contractor is to be accountable under 

the contract for Government property. 

(h) The contracting officer shall insert 

the clause at 1852.245–77, List of 

Government Property Furnished 

Pursuant to FAR 52.245–2, in 

solicitations and contracts containing 

the clause at 52.245–2, Government 

Property Installation Operation 

Services. In addition, the contracting 

officer shall insert the following 

language in the blanks in paragraph (e) 

of the clause at 52.245–2: 

‘‘The Government property provided 

under this clause is identified in clause 

1852.245–77 of this contract.’’ 

(i) The contracting officer shall insert 

the clause at 1852.245–78, Physical 

Inventory of Capital Personal Property, 

in cost reimbursement and fixed-price 

solicitations and contracts that provide 

Government property. 

(j) The contracting officer shall insert 

the clause at 1852.245–79, Records and 

Disposition Reports for Government 

Property with Potential Historic or 

Significant Real Value, in solicitations 

and contracts when, after consultation 

with the center Historic Preservation 

Officer, it is determined that the items 

acquired for or produced by the contract 

are likely to have historic significance or 

increased value due to their use in 

support of NASA projects and programs. 

(k)(1) The contracting officer shall 

insert the provision at 1852.245–80, 

Government Property Management 

Information, in solicitations when it is 

known, or there is a reasonable chance, 

that Government property will be 

provided to the contractor for contract 

performance. 

(2) The contracting officer shall use 

the provision with Alternate 1 when 

there are sufficient time and resources 

to allow prospective contractors the 

opportunity to inspect the property. 

(l) The contracting officer shall insert 

the provision at 1852.245–81, List of 

Available Government Property, in 

solicitations when Government property 

will be made available for contract 

performance. 

(m) The contracting officer shall insert 

the clause at 1852.245–82, Occupancy 

Management Requirements, in 

solicitations and contracts that require 

performance on, or in, any NASA 

Center, Installation, facility or other 

NASA owned property. 

(n) The contracting officer shall insert 

the clause at 1852.245–83 Real Property 

Management Requirements, in 

solicitations and contracts for 

acquisition, construction, modification 

(including when the modification is a 

consequence of another approved task, 

e.g., installation of telephonic or local 

area network equipment), demolition, or 

management of real property. 

■ 3. Subpart 1845.3 is added to read as 

follows: 

Subpart 1845.3—Authorizing the Use 

and Rental of Government Property 

1845.301–71 Use of Government property 

for commercial work. 

(a) The coverage at FAR 45.3 applies 

to a contractor’s commercial (any nonGovernment) use of any NASA 

equipment. 

1845.302 Use of Government property on 

contracts with foreign governments or 

international organizations. 

(a) NASA contracting officers will 

recover a fair share of the cost of 

Government property if such property is 

used in performing services or 

manufacturing articles for foreign 

countries or for international 

organizations. 

Subpart 1845.4—[Removed and 

Reserved] 

■ 4. Subpart 1845.4 is removed and 

reserved. 

■ 5. Subpart 1845.5 is revised to read as 

follows: 

Subpart 1845.5—Support Government 

Property Administration 

Sec. 

1845.501–70 General. 

1845.503–70 Delegations of property 

administration and plant clearance. 

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1845.505–70 Responsibilities of the 

property administrator. 

1845.506–70 Responsibilities of the plant 

clearance officer. 

Subpart 1845.5—Support Government 

Property Administration 

1845.501–70 General. 

(b) When the Industrial Property 

Officer or Property Administrator 

determines that the contractor’s 

proposed systems, standards and 

practices for the management of 

Government property are inadequate to 

manage Government property, the 

Contracting Officer should: (1) Require 

the contractor to provide a written 

revision that addresses the 

determination of the Industrial Property 

Officer or Property Administrator. 

1845.503–70 Delegations of property 

administration and plant clearance. 

(e) Under the clause at 1852.245–71, 

Installation-Accountable Government 

Property, property is managed by center 

logistics functions using NASA internal 

policy and procedural guidance, 

except— 

(1) When contractors are provided or 

are allowed the use of property that is 

not governed by that procedural 

guidance, management of that property 

is governed by the applicable FAR 

clause. 

(2) When the contractor is responsible 

for performance of any segment of a 

property system under a FAR property 

clause, then property administration 

and plant clearance are required. 

1845.505–70 Responsibilities of the 

property administrator. 

(c) When the property administrator 

determines that all or a portion of a 

contractor’s property management 

practices and processes do not afford 

sufficient protection against loss, 

damage or destruction of Government 

property: 

(1) The property administrator shall 

increase surveillance to prevent, to the 

extent possible, any loss, damage, or 

destruction of Government property; 

and 

(2) Advise the contracting officer of 

any known or reported incidence of 

loss, damage or destruction identified 

during any period in which the 

contracting officer has revoked the 

Government’s acceptance of risk. 

(d) The property administrator shall 

review records and the results of 

contractor actions to identify any and all 

incidence where the contractor fails to 

report property no longer required for 

performance for periods longer than 

called for in their standards and 

practices. 

1845.506–70 Responsibilities of the plant 

clearance officer. 

When plant clearance is not delegated 

to DOD, NASA plant clearance officers 

shall be responsible for— 

(a) Providing the contractor with 

instructions and advice regarding the 

proper preparation of inventory 

schedules; 

(b) Accepting or rejecting inventory 

schedules; 

(c) Conducting or arranging for 

inventory verification; 

(d) Initiating prescribed screening and 

effecting resulting actions; 

(e) Final plant clearance of contractor 

inventory; 

(f) Pre-inventory scrap 

determinations, as appropriate; 

(g) Evaluating the adequacy of the 

contractor’s procedures for property 

disposal and providing feedback to the 

Property Administrator regarding the 

contractor’s performance in property 

disposal activities; 

(h) Determining the method of 

disposal; 

(i) Surveillance of any contractor 

conducted sales; 

(j) Accounting for all contractor 

inventory reported by the contractor; 

(k) Advising and assisting, as 

appropriate, the contractor, the Supply 

and Equipment Management Officer 

(SEMO) and other Federal agencies in 

all actions relating to the proper and 

timely disposal of contractor inventory; 

(l) Approving the method of sale, 

evaluating bids, and approving sale 

prices for any contractor-conducted 

sales; and 

(m) Recommending the 

reasonableness of selling expenses 

related to any contractor-conducted 

sales. 

Subpart 1845.6—Reporting, 

Reutilization, and Disposal 

■ 6. Section 1845.606–70 is added to 

read as follows: 

1845.606–70 Contractor’s approved scrap 

procedure. 

(a) When a contractor has an 

approved scrap procedure, certain 

property may be routinely disposed of 

in accordance with that procedure and 

not processed under this section. 

(d) Property in scrap condition, other 

than that disposed of through the 

contractor’s approved scrap procedure, 

shall be reported on appropriate 

inventory schedules for disposition in 

accordance with the provisions of FAR 

Part 45 and NFS 1845. 

Subpart 1845.7101—Forms Preparation 

■ 7. Paragraph (c) of section 1845.7101– 

2 is revised to read as follows: 

1845.7101–2 Transfer of property. 

* * * * * 

(c) Incomplete documentation. If 

contractors receive transfer documents 

having insufficient detail to properly 

record the transfer (e.g., omission of 

property classification, FSC, unit 

acquisition cost, Government 

acquisition date, required signatures, 

etc.) they shall request the omitted data 

directly from the shipping contractor or 

through the property administrator. The 

contracting officer shall assist the 

Government Property Administrator and 

the receiving contractor to obtain all 

required information for the receiving 

contractor to establish adequate 

property records. 

* * * * * 

1845.7102 [Removed] 

■ 8. Section 1845.7102 is removed. 

Subpart 1845.72—[Removed] 

■ 9. Subpart 1845.72 is removed. 

PART 1852—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 10. In Part 1852, sections 1852.245–70 

through 1852.245–80 are revised and 

sections 1852.245–81 through 

1852.245–83 are added to read as 

follows: 

Subpart 1852.2—Text of Provisions and 

Clauses 

* * * * * 

Sec. 

1852.245–70 Contractor requests for 

Government-provided property. 

1852.245–71 Installation-accountable 

Government property. 

1852.245–72 Liability for Government 

property furnished for repair or other 

services. 

1852.245–73 Financial reporting of NASA 

property in the custody of contractors. 

1852.245–74 Identification and marking of 

Government equipment. 

1852.245–75 Property management 

changes. 

1852.245–76 List of Government property 

furnished pursuant to FAR 52.245–1. 

1852.245–77 List of Government property 

furnished pursuant to FAR 52.245–2. 

1852.245–78 Physical inventory of capital 

personal property. 

1852.245–79 Records and disposition 

reports for Government property with 

potential historic or significant real 

value. 

1852.245–80 Government property 

management information. 

1852.245–81 List of available Government 

property. 

1852.245–82 Occupancy management 

requirements. 

1852.245–83 Real property management 

requirements. 

* * * * * 

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Subpart 1852.2—Text of Provisions 

and Clauses 

* * * * * 

1852.245–70 Contractor Requests for 

Government-Provided Equipment. 

As prescribed in 1845.107–70(a)(1), 

insert the following clause: 

CONTRACTOR REQUESTS FOR 

GOVERNMENT-PROVIDED 

EQUIPMENT (JAN 2011) 

(a) The Contractor shall provide all 

property required for the performance of this 

contract. The Contractor shall not acquire or 

construct items of property to which the 

Government will have title under the 

provisions of this contract without the 

Contracting Officer’s written authorization. 

Property which will be acquired as a 

deliverable end item as material or as a 

component for incorporation into a 

deliverable end item is exempt from this 

requirement. Property approved as part of the 

contract award or specifically required 

within the statement of work is exempt from 

this requirement. 

(b)(1) In the event the Contractor is unable 

to provide the property necessary for 

performance, and the Contractor requests 

provision of property by the Government, the 

Contractor’s request shall— 

(i) Justify the need for the property; 

(ii) Provide the reasons why contractorowned property cannot be used; 

(iii) Describe the property in sufficient 

detail to enable the Government to screen its 

inventories for available property or to 

otherwise acquire property, including 

applicable manufacturer, model, part, 

catalog, National Stock Number or other 

pertinent identifiers; 

(iv) Combine requests for quantities of 

items with identical descriptions and 

estimated values when the estimated values 

do not exceed $100,000 per unit; and 

(v) Include only a single unit when the 

acquisition or construction value equals or 

exceeds $100,000. 

(2) Contracting Officer authorization is 

required for items the Contractor intends to 

manufacture as well as those it intends to 

purchase. 

(3) The Contractor shall submit requests to 

the Contracting Officer no less than 30 days 

in advance of the date the Contractor would, 

should it receive authorization, acquire or 

begin fabrication of the item. 

(c) The Contractor shall maintain copies of 

Contracting Officer authorizations, 

appropriately cross-referenced to the 

individual property record, within its 

property management system. 

(d) Property furnished from Government 

excess sources is provided as-is, where-is. 

The Government makes no warranty 

regarding its applicability for performance of 

the contract or its ability to operate. Failure 

of property obtained from Government excess 

sources under this clause is insufficient 

reason for submission of requests for 

equitable adjustments discussed in the clause 

at FAR 52.245–1, Government Property, as 

incorporated in this contract. 

(End of Clause) 

ALTERNATE I (JAN 2011) 

As prescribed in 1845.107–70(a)(2), add 

the following paragraph (e). 

(e) In the event the Contracting Officer 

issues written authorization to provide 

property, the Contractor shall screen 

Government sources to determine the 

availability of property from Government 

inventory or excess property. 

(1) The Contractor shall review NASA 

inventories and other authorized Federal 

excess sources for availability of items that 

meet the performance requirements of the 

requested property. 

(i) If the Contractor determines that a 

suitable item is available from NASA supply 

inventory, it shall request the item using 

applicable Center procedures. 

(ii) If the Contractor determines that an 

item within NASA or Federal excess is 

suitable, it shall contact the Center Industrial 

Property Officer to arrange for transfer of the 

item from the identified source to the 

Contractor. 

(2) If the Contractor determines that the 

required property is not available from 

inventory or excess sources, the Contractor 

shall note the acquisition file with a list of 

sources reviewed and the findings regarding 

the lack of availability. If the required 

property is available, but unsuitable for use, 

the contractor shall document the rationale 

for rejection of available property. The 

Contractor shall retain appropriate crossreferenced documentary evidence of the 

outcome of those screening efforts as part of 

its property records system. 

1852.245–71 Installation-accountable 

Government Property. 

As prescribed in 1845.107–70(b)(1), 

insert the following clause: 

INSTALLATION-ACCOUNTABLE 

GOVERNMENT PROPERTY (JAN 2011) 

(a) The Government property described in 

paragraph (c) of this clause may be made 

available to the Contractor on a no-charge 

basis for use in performance of this contract. 

This property shall be utilized only within 

the physical confines of the NASA 

installation that provided the property unless 

authorized by the Contracting Officer under 

(b)(1)(iv). Under this clause, the Government 

retains accountability for, and title to, the 

property, and the Contractor shall comply 

with the following: 

NASA Procedural Requirements (NPR) 

4100.1, NASA Materials Inventory 

Management Manual; 

NASA Procedural Requirements (NPR) 

4200.1, NASA Equipment Management 

Procedural Requirements; 

NASA Procedural Requirement (NPR) 

4300.1, NASA Personal Property Disposal 

Procedural Requirements; 

[Insert any additional property management 

responsibilities.]. 

Property not recorded in NASA property 

systems must be managed in accordance with 

the requirements of the clause at FAR 

52.245–1, as incorporated in this contract. 

The Contractor shall establish and adhere 

to a system of written procedures to assure 

continued, effective management control and 

compliance with these user responsibilities. 

In accordance with FAR 52.245–1(h)(1) the 

contractor shall be liable for property lost, 

damaged, destroyed or stolen by the 

contractor or their employees when 

determined responsible by a NASA Property 

Survey Board, in accordance with the NASA 

guidance in this clause. 

(b)(1) The official accountable 

recordkeeping, financial control, and 

reporting of the property subject to this 

clause shall be retained by the Government 

and accomplished within NASA 

management information systems prescribed 

by the installation Supply and Equipment 

Management Officer (SEMO) and Financial 

Management Officer. If this contract provides 

for the Contractor to acquire property, title to 

which will vest in the Government, the 

following additional procedures apply: 

(i) The Contractor’s purchase order shall 

require the vendor to deliver the property to 

the installation central receiving area. 

(ii) The Contractor shall furnish a copy of 

each purchase order, prior to delivery by the 

vendor, to the installation central receiving 

area. 

(iii) The Contractor shall establish a record 

for Government titled property as required by 

FAR 52.245–1, as incorporated in this 

contract, and shall maintain that record until 

accountability is accepted by the 

Government. 

(iv) Contractor use of Government property 

at an off-site location and off-site 

subcontractor use requires advance approval 

of the Contracting Officer and notification of 

the Industrial Property Officer. The property 

shall be considered Government furnished 

and the Contractor shall assume 

accountability and financial reporting 

responsibility. The Contractor shall establish 

records and property control procedures and 

maintain the property in accordance with the 

requirements of FAR 52.245–1, Government 

Property (as incorporated in this contract), 

until its return to the installation. NASA 

Procedural Requirements related to property 

loans shall not apply to offsite use of 

property by contractors. 

(2) After transfer of accountability to the 

Government, the Contractor shall continue to 

maintain such internal records as are 

necessary to execute the user responsibilities 

identified in paragraph (a) of this clause and 

document the acquisition, billing, and 

disposition of the property. These records 

and supporting documentation shall be made 

available, upon request, to the SEMO and any 

other authorized representatives of the 

Contracting Officer. 

(c) The following property and services are 

provided if checked: 

(1) Office space, work area space, and 

utilities. Government telephones are 

available for official purposes only. 

(2) Office furniture. 

(3) Property listed in [Insert attachment 

number or ‘‘not applicable’’ if no equipment 

is provided]. 

(i) If the Contractor acquires property, title 

to which vests in the Government pursuant 

to other provisions of this contract, this 

property also shall become accountable to the 

Government upon its entry into Government 

records. 

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(ii) The Contractor shall not bring to the 

installation for use under this contract any 

property owned or leased by the Contractor, 

or other property that the Contractor is 

accountable for under any other Government 

contract, without the Contracting Officer’s 

prior written approval. 

(4) Supplies from stores stock. 

(5) Publications and blank forms stocked 

by the installation. 

(6) Safety and fire protection for Contractor 

personnel and facilities. 

(7) Installation service facilities: [Insert the 

name of the facilities or ‘‘none’’]. 

(8) Medical treatment of a first-aid nature 

for Contractor personnel injuries or illnesses 

sustained during on-site duty. 

(9) Cafeteria privileges for Contractor 

employees during normal operating hours. 

(10) Building maintenance for facilities 

occupied by Contractor personnel. 

(11) Moving and hauling for office moves, 

movement of large equipment, and delivery 

of supplies. Moving services may be 

provided on-site, as approved by the 

Contracting Officer. 

(End of clause) 

ALTERNATE I (JAN 2011) 

As prescribed in 1845.107–70(b)(4), 

substitute the following for paragraph 

(b)(1)(i) of the basic clause: 

(i) The Contractor shall not utilize the 

installation’s central receiving facility for 

receipt of contractor-acquired property. 

However, the Contractor shall provide 

listings suitable for establishing accountable 

records of all such property received, on a 

monthly basis, to the SEMO. 

1852.245–72 Liability for Government 

Property Furnished for Repair or Other 

Services. 

As prescribed in 1845.107–70(c), 

insert the following clause: 

LIABILITY FOR GOVERNMENT 

PROPERTY FURNISHED FOR REPAIR 

OR OTHER SERVICES (JAN 2011) 

(a) This clause shall govern with respect to 

any Government property furnished to the 

Contractor for repair or other services that is 

to be returned to the Government. Such 

property, hereinafter referred to as 

‘‘Government property furnished for 

servicing,’’ shall not be subject to FAR 

52.245–1, Government Property. 

(b) The official accountable recordkeeping 

and financial control and reporting of the 

property subject to this clause shall be 

retained by the Government. The Contractor 

shall maintain adequate records and 

procedures to ensure that the Government 

property furnished for servicing can be 

readily accounted for and identified at all 

times while in its custody or possession or 

in the custody or possession of any 

subcontractor. 

(c) The Contractor shall be liable for any 

loss, damage, or destruction of the 

Government property furnished for servicing 

when caused by the Contractor’s failure to 

exercise such care and diligence as a 

reasonable prudent owner of similar property 

would exercise under similar circumstances. 

The Contractor shall not be liable for loss, 

damage, or destruction of Government 

property furnished for servicing resulting 

from any other cause except to the extent that 

the loss, damage, or destruction is covered by 

insurance (including self-insurance funds or 

reserves). 

(d) The Contractor shall hold the 

Government harmless and shall indemnify 

the Government against all claims for injury 

to persons or damage to property of the 

Contractor or others arising from the 

Contractor’s possession or use of the 

Government property furnished for servicing 

or arising from the presence of that property 

on the Contractor’s premises or property. 

(End of clause) 

1852.245–73 Financial Reporting of NASA 

Property in the Custody of Contractors. 

■ As prescribed in 1845.106–70(d), 

insert the following clause: 

FINANCIAL REPORTING OF NASA 

PROPERTY IN THE CUSTODY OF 

CONTRACTORS (JAN 2011) 

(a) The Contractor shall submit annually a 

NASA Form (NF) 1018, NASA Property in 

the Custody of Contractors, in accordance 

with this clause, the instructions on the form 

and NFS subpart 1845.71, and any 

supplemental instructions for the current 

reporting period issued by NASA. 

(b)(1) Subcontractor use of NF 1018 is not 

required by this clause; however, the 

Contractor shall include data on property in 

the possession of subcontractors in the 

annual NF 1018. 

(2) The Contractor shall mail the original 

signed NF 1018 directly to the cognizant 

NASA Center Deputy Chief Financial Officer, 

Finance, unless the Contractor uses the NF 

1018 Electronic Submission System (NESS) 

for report preparation and submission. 

(3) One copy shall be submitted (through 

the Department of Defense (DOD) Property 

Administrator if contract administration has 

been delegated to DOD) to the following 

address: [Insert name and address of 

appropriate NASA Center office.], unless the 

Contractor uses the NF 1018 Electronic 

Submission System (NESS) for report 

preparation and submission. 

(c)(1) The annual reporting period shall be 

from October 1 of each year through 

September 30 of the following year. The 

report shall be submitted in time to be 

received by October 15. The information 

contained in these reports is entered into the 

NASA accounting system to reflect current 

asset values for agency financial statement 

purposes. Therefore, it is essential that 

required reports be received no later than 

October 15. Some activity may be estimated 

for the month of September, if necessary, to 

ensure the NF 1018 is received when due. 

However, contractors’ procedures must 

document the process for developing these 

estimates based on planned activity such as 

planned purchases or NASA Form 533 (NF 

533 Contractor Financial Management 

Report) cost estimates. It should be supported 

and documented by historical experience or 

other corroborating evidence, and be retained 

in accordance with FAR Subpart 4.7, 

Contractor Records Retention. Contractors 

shall validate the reasonableness of the 

estimates and associated methodology by 

comparing them to the actual activity once 

that data is available, and adjust them 

accordingly. In addition, differences between 

the estimated cost and actual cost must be 

adjusted during the next reporting period. 

Contractors shall have formal policies and 

procedures, which address the validation of 

NF 1018 data, including data from 

subcontractors, and the identification and 

timely reporting of errors. The objective of 

this validation is to ensure that information 

reported is accurate and in compliance with 

the NASA FAR Supplement. If errors are 

discovered on NF 1018 after submission, the 

contractor shall contact the cognizant NASA 

Center Industrial Property Officer (IPO) 

within 30 days after discovery of the error to 

discuss corrective action. 

(2) The Contracting Officer may, in NASA’s 

interest, withhold payment until a reserve 

not exceeding $25,000 or 5 percent of the 

amount of the contract, whichever is less, has 

been set aside, if the Contractor fails to 

submit annual NF 1018 reports in accordance 

with NFS subpart 1845.71 and any 

supplemental instructions for the current 

reporting period issued by NASA. Such 

reserve shall be withheld until the 

Contracting Officer has determined that 

NASA has received the required reports. The 

withholding of any amount or the subsequent 

payment thereof shall not be construed as a 

waiver of any Government right. 

(d) A final report shall be submitted within 

30 days after disposition of all property 

subject to reporting when the contract 

performance period is complete in 

accordance with paragraph (b)(1) through (3) 

of this clause. 

(End of clause) 

1852.245–74 Identification and Marking of 

Government Equipment. 

■ As prescribed by 1845.107–70(e), 

insert the following clause. 

IDENTIFICATION AND MARKING OF 

GOVERNMENT EQUIPMENT (JAN 

2011) 

(a) The Contractor shall identify all 

equipment to be delivered to the Government 

using NASA Technical Handbook (NASA– 

HDBK) 6003, Application of Data Matrix 

Identification Symbols to Aerospace Parts 

Using Direct Part Marking Methods/ 

Techniques, and NASA Standard (NASA– 

STD) 6002, Applying Data Matrix 

Identification Symbols on Aerospace Parts or 

through the use of commercial marking 

techniques that: (1) are sufficiently durable to 

remain intact through the typical lifespan of 

the property: and, (2) contain the data and 

data format required by the standards. This 

requirement includes deliverable equipment 

listed in the schedule and other equipment 

when no longer required for contract 

performance and NASA directs physical 

transfer to NASA or a third party. The 

Contractor shall identify property in both 

machine and human readable form unless the 

use of a machine readable-only format is 

approved by the NASA Industrial Property 

Officer. 

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(b) Equipment shall be marked in a 

location that will be human readable, 

without disassembly or movement of the 

equipment, when the items are placed in 

service unless such placement would have a 

deleterious effect on safety or on the item’s 

operation. 

(c) Concurrent with equipment delivery or 

transfer, the Contractor shall provide the 

following data in an electronic spreadsheet 

format: 

(1) Item Description. 

(2) Unique Identification Number (License 

Tag). 

(3) Unit Price. 

(4) An explanation of the data used to 

make the unique identification number. 

(d) For equipment no longer needed for 

contract performance and physically 

transferred under paragraph (a) of this clause, 

the following additional data is required: 

(1) Date originally placed in service. 

(2) Item condition. 

(e) The data required in paragraphs (c) and 

(d) of this clause shall be delivered to the 

NASA center receiving activity listed below: 

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

(f) The contractor shall include the 

substance of this clause, including this 

paragraph (f), in all subcontracts that require 

delivery of equipment. 

(End of clause) 

1852.245–75 Property Management 

Changes. 

■ As prescribed in 1845.107–70(f), 

insert the following clause. 

PROPERTY MANAGEMENT CHANGES 

(JAN 2011) 

(a) The Contractor shall submit any 

changes to standards and practices used for 

management and control of Government 

property under this contract to the assigned 

property administrator prior to making the 

change whenever the change— 

(1) Employs a standard that allows increase 

in thresholds or changes the timing for 

reporting loss, damage, or destruction of 

property; 

(2) Alters physical inventory timing or 

procedures; 

(3) Alters recordkeeping practices; 

(4) Alters practices for recording the 

transport or delivery of Government 

property; or 

(5) Alters practices for disposition of 

Government property. 

(End of clause) 

1852.245–76 List of Government Property 

Furnished Pursuant to FAR 52.245–1. 

■ As prescribed in 1845.107–70(g), 

insert the following clause: 

LIST OF GOVERNMENT PROPERTY 

FURNISHED PURSUANT TO FAR 

52.245–1 (JAN 2011) 

For performance of work under this 

contract, the Government will make available 

Government property identified below or in 

Attachment [Insert attachment number or 

‘‘not applicable’’] of this contract on a no 

charge-for-use basis pursuant to the clause at 

FAR 52.245–1, Government Property, as 

incorporated in this contract. The Contractor 

shall use this property in the performance of 

this contract at [Insert applicable site(s) 

where property will be used] and at other 

location(s) as may be approved by the 

Contracting Officer. Under FAR 52.245–1, the 

Contractor is accountable for the identified 

property. 

(End of clause) 

1852.245–77 List of Government Property 

Furnished Pursuant to FAR 52.245–2. 

■ As prescribed in 1845.107–70(h), 

insert the following clause: 

LIST OF GOVERNMENT PROPERTY 

FURNISHED PURSUANT TO FAR 

52.245–2 (JAN 2011) 

For performance of work under this 

contract, the Government will make available 

Government property identified below or in 

Attachment __ [Insert attachment number or 

‘‘not applicable’’] of this contract on a 

nocharge-for-use basis pursuant to FAR 

52.245–2, Government Property Installation 

Operation Services, as incorporated in this 

contract. The Contractor shall use this 

property in the performance of this contract 

at __ [Insert applicable site(s) where property 

will be used] and at other location(s) as may 

be approved by the Contracting Officer. 

[Insert a description of the item(s), 

acquisition date, quantity, acquisition cost, 

and applicable equipment information] 

(End of clause) 

1852.245–78 Physical Inventory of Capital 

Personal Property. 

■ As prescribed in 1845.107–70(i), 

insert the following clause. 

PHYSICAL INVENTORY OF CAPITAL 

PERSONAL PROPERTY (JAN 2011) 

(a) In addition to physical inventory 

requirements under the clause at FAR 

52.245–1, Government Property, as 

incorporated in this contract, the Contractor 

shall conduct annual physical inventories for 

individual property items with an acquisition 

cost exceeding $100,000. 

(1) The Contractor shall inventory— 

(i) Items of property furnished by the 

Government; 

(ii) Items acquired by the Contractor and 

titled to the Government under the clause at 

FAR 52.245–1; 

(iii) Items constructed by the Contractor 

and not included in the deliverable, but titled 

to the Government under the clause at FAR 

52.245–1; and 

(iv) Complete but undelivered deliverables. 

(2) The Contractor shall use the physical 

inventory results to validate the property 

record data, specifically location and use 

status, and to prepare summary reports of 

inventory as described in paragraph (c) of 

this clause. 

(b) Unless specifically authorized in 

writing by the Property Administrator, the 

inventory shall be performed and posted by 

individuals other than those assigned 

custody of the items, responsibility for 

maintenance, or responsibility for posting to 

the property record. The Contractor may 

request a waiver from this separation of 

duties requirement from the Property 

Administrator, when all of the conditions in 

either (1) or (2) of this paragraph are met. 

(1) The Contractor utilizes an electronic 

system for property identification, such as a 

laser bar-code reader or radio frequency 

identification reader, and 

(i) The programs or software preclude 

manual data entry of inventory identification 

data by the individual performing the 

inventory; and 

(ii) The inventory and property 

management systems contain sufficient 

management controls to prevent tampering 

and assure proper posting of collected 

inventory data. 

(2) The Contractor has limited quantities of 

property, limited personnel, or limited 

property systems; and the Contractor 

provides written confirmation that the 

Government property exists in the recorded 

condition and location; 

(3) The Contractor shall submit the request 

to the cognizant property administrator and 

obtain approval from the property 

administrator prior to implementation of the 

practice. 

(c) The Contractor shall report the results 

of the physical inventory to the property 

administrator within 10 calendar days of 

completion of the physical inventory. The 

report shall— 

(1) Provide a summary showing number 

and value of items inventoried; and 

(2) Include additional supporting reports 

of— 

(i) Loss in accordance with the clause at 

52.245–1, Government Property; 

(ii) Idle property available for reuse or 

disposition; and 

(iii) A summary of adjustments made to 

location, condition, status, or user as a result 

of the physical inventory reconciliation. 

(d) The Contractor shall retain auditable 

physical inventory records, including records 

supporting transactions associated with 

inventory reconciliation. All records shall be 

subject to Government review and/or audit. 

(End of clause) 

1852.245–79 Records and Disposition 

Reports for Government Property with 

Potential Historic or Significant Real Value. 

■ As prescribed in 1845.107–70(j), 

insert the following clause. 

RECORDS AND DISPOSITION 

REPORTS FOR GOVERNMENT 

PROPERTY WITH POTENTIAL 

HISTORIC OR SIGNIFICANT REAL 

VALUE (JAN 2011) 

(a) In addition to the property record data 

required by the clause at FAR 52.245–1, 

Government Property as incorporated in this 

contract, Contractor records of all 

Government property under this contract 

shall— 

(1) Identify the projects or missions that 

used the items; 

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(2) Specifically identify items of flown 

property; 

(3) When known, associate individual 

items of property used in space flight 

operations with the using astronaut(s); and 

(4) Identify property used in test activity 

and, when known, the individuals who 

0conducted the test. 

(b) The Contractor shall include this 

information within item descriptions— 

(1) On any Standard Form 1428, Inventory 

Schedule; 

(2) In automated disposition systems; 

(3) In any other disposition related reports; 

and 

(4) In other requests for disposition 

instructions. 

(c) The Contractor shall not remove NASA 

identification or markings from Government 

property prior to or during disposition 

without the advanced written approval of the 

Plant Clearance Officer. 

(End of clause) 

1852.245–80 Government Property 

Management Information. 

■ As prescribed in 1845.107–70(k)(1), 

insert the following provision. 

GOVERNMENT PROPERTY 

MANAGEMENT INFORMATION (JAN 

2011) 

(a) The offeror shall identify the industry 

leading or voluntary consensus standards, 

and/or the industry leading practices, that it 

intends to employ for the management of 

Government property under any contract 

awarded from this solicitation. 

(b) The offeror shall provide the date of its 

last Government property control system 

analysis along with its overall status, a 

summary of findings and recommendations, 

the status of any recommended corrective 

actions, the name of the Government activity 

that performed the analysis, and the latest 

available contact information for that 

activity. 

(c) The offeror shall identify any property 

it intends to use in performance of this 

contract from the list of available 

Government property in the provision at 

1852.245–81, List of Available Government 

Property. 

(d) The offeror shall identify all 

Government property in its possession, 

provided under other Government contracts 

that it intends to use in the performance of 

this contract. The offeror shall also identify: 

The contract that provided the property, the 

responsible Contracting Officer, the dates 

during which the property will be available 

for use (including the first, last, and all 

intervening months), and, for any property 

that will be used concurrently in performing 

two or more contracts, the amounts of the 

respective uses in sufficient detail to support 

prorating the rent, the amount of rent that 

would otherwise be charged in accordance 

with FAR 52.245–9, Use and Charges (June 

2007), and the contact information for the 

responsible Government Contracting Officer. 

The offeror shall provide proof that such use 

was authorized by the responsible 

Contracting Officer. 

(e) The offeror shall disclose cost 

accounting practices that allow for direct 

charging of commercially available 

equipment, when commercially available 

equipment is to be used in performance of 

the contract and the equipment is not a 

deliverable. 

(f) The offeror shall identify, in list form, 

any equipment that it intends to acquire and 

directly charge to the Government under this 

contract. The list shall include a description, 

manufacturer, model number (when 

available), quantity required, and estimated 

unit cost. Equipment approved as part of the 

award need not be requested under NFS 

clause 1852.245–70, 

(g) The offeror shall disclose its intention 

to acquire any parts, supplies, materials or 

equipment, to fabricate an item of equipment 

for use under any contract resulting from this 

solicitation when that item of equipment: 

Will be titled to the government under the 

provisions of the contract; is not included as 

a contract deliverable; and the Contractor 

intends to charge the costs of materials 

directly to the contract. The disclosure shall 

identify the end item or system and shall 

include all descriptive information, 

identification numbers (when available), 

quantities required and estimated costs. 

(h) Existing Government property may be 

reviewed at the following locations, dates, 

and times: [Enter the appropriate 

information] 

(End of provision) 

ALTERNATE 1 (JAN 2011) 

As prescribed in 1845.107–70(k)(2) add the 

following paragraph (i). 

(i) Existing available Government property 

listed in the provision at 1852.245–81 is 

provided ‘‘as-is.’’ NASA makes no warranty 

regarding its performance or condition. The 

offeror uses this property at its own risk and 

should make its own assessment of the 

property’s suitability for use. The equitable 

adjustment provisions of the clause at 

52.245–1, Government Property as included 

in this solicitation, are not applicable to this 

property. The offeror must obtain the 

Contracting Officer’s written approval before 

acquiring replacement property when it 

intends to charge the cost directly to the 

contract. 

18.52.245–81 List of Available Government 

Property. 

■ As prescribed in 1845.107–70(l), 

insert the following provision. 

LIST OF AVAILABLE GOVERNMENT 

PROPERTY (JAN 2011) 

(a) The Government will make the 

following Government property available for 

use in performance of the contract resulting 

from this solicitation, on a no-charge-for-use 

basis in accordance with FAR 52.245–1, 

Government Property, included in this 

solicitation. The offeror shall notify the 

Government, as part of its proposal, of its 

intention to use or not use the property. 

(b) The Government will make the 

following Government property available for 

use in performance of the contract resulting 

from this solicitation, on a no-charge-for-use 

basis in accordance with FAR 52.245–2, 

Government Property Installation Operation 

Services, as included in this solicitation. The 

offeror shall notify the Government of its 

intention to use or not use the property. 

(c) The selected Contractor will be 

responsible for costs associated with 

transportation, and installation of the 

property listed in this provision. 

(End of provision) 

1852.245–82 Occupancy Management 

Requirements. 

■ As prescribed in 1845.106–70(m), 

insert the following clause: 

OCCUPANY MANAGEMENT 

REQUIREMENTS (JAN 2011) 

(a) In addition to the requirements of the 

clause at FAR 52.245–1, Government 

Property, as included in this contract, the 

Contractor shall comply with the following 

in performance of work in and around 

Government real property: 

(1) NPD 8800.14, Policy for Real Property 

Management. 

(2) NPR 8831.2, Facility Maintenance 

Management. 

[Insert any additional Center occupancy 

requirements here] 

(b) The Contractor shall obtain the written 

approval of the Contracting Officer before 

installing or removing Contractor-owned 

property onto or into any Government real 

property or when movement of Contractorowned property may damage or destroy 

Government-owned property. The Contractor 

shall restore damaged property to its original 

condition at the Contractor’s expense. 

(c) The Contractor shall not acquire, 

construct or install any fixed improvement or 

structural alterations in Government 

buildings or other real property without the 

advance, written approval of the Contracting 

Officer. Fixed improvement or structural 

alterations, as used herein, means any 

alteration or improvement in the nature of 

the building or other real property that, after 

completion, cannot be removed without 

substantial loss of value or damage to the 

premises. Title to such property shall vest in 

the Government. 

(d) The Contractor shall report any real 

property or any portion thereof when it is no 

longer required for performance under the 

contract, as directed by the Contracting 

Officer. 

(End of clause) 

1852.245–83 Real Property Management 

Requirements. 

■ As prescribed in 1845.106–70(n), 

insert the following clause: 

REAL PROPERTY MANAGEMENT 

REQUIREMENTS (JAN 2011) 

(a) In addition to the requirements of the 

FAR Government Property Clause 

incorporated in this contract (FAR 52.245–1), 

the Contractor shall comply with the 

following in performance of any 

maintenance, construction, modification, 

demolition, or management activities of any 

Government real property: 

(1) NPD 8800.14, Policy for Real Property 

Management. 

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(2) NPR 8831.2, Facility Maintenance 

Management. 

[Insert any real property related Center 

requirements here] 

(b) Within 30 calendar days following 

award, the Contractor shall provide a plan for 

maintenance of Government real property 

provided for use under this contract. 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 

Contracting Officer the need for replacement 

and/or capital rehabilitation. Upon 

acceptance by the Contracting Officer, the 

program shall become a requirement under 

this contract. 

(c) Title to parts replaced by the Contractor 

in carrying out its normal maintenance 

obligations shall pass to and vest in the 

Government upon completion of their 

installation in the facilities. The Contractor 

shall keep the property free and clear of all 

liens and encumbrances. 

(d) The Contractor shall keep records of all 

work done to real property, including plans, 

drawings, charts, warranties, and manuals. 

Records shall be complete and current. 

Record of all transactions shall be auditable. 

The Government shall have access to these 

records at all reasonable times, for the 

purposes of reviewing, inspecting, and 

evaluating the Contractor’s real property 

management effectiveness. When real 

property is disposed of under this contract, 

the Contractor shall deliver the related 

records to the Government. 

(e) The Contracting Officer may direct the 

Contractor in writing to reduce the work 

required by the maintenance program 

authorized in paragraph (b) of this clause at 

any time. 

(End of clause) 

[FR Doc. 2010–32741 Filed 1–11–11; 8:45 am] 

BILLING CODE 7510–01–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 300 

[Docket No. 070514119–0452–03] 

RIN 0648–AV51 

High Seas Driftnet Fishing Moratorium 

Protection Act; Identification and 

Certification Procedures To Address 

Illegal, Unreported, and Unregulated 

Fishing Activities and Bycatch of 

Protected Living Marine Resources 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Final rule. 

SUMMARY: This final action implements 

identification and certification 

procedures to address illegal, 

unreported, and unregulated (IUU) 

fishing activities and bycatch of 

protected living marine resources 

(PLMRs) pursuant to the High Seas 

Driftnet Fishing Moratorium Protection 

Act (Moratorium Protection Act). The 

objectives of these procedures are to 

promote the sustainability of 

transboundary and shared fishery stocks 

and to enhance the conservation and 

recovery of PLMRs. The final rule is 

intended to implement existing U.S. 

statutory authorities to address 

noncompliance with international 

fisheries management and conservation 

agreements, and encourage the use of 

bycatch reduction methods in 

international fisheries that are 

comparable to methods used in U.S. 

fisheries. Agency actions and 

recommendations under this rule will 

be in accordance with U.S. obligations 

under applicable international trade 

law, including the World Trade 

Organization (WTO) Agreement. 

DATES: This final rule is effective on 

January 12, 2011, except for 

§§ 302.205(b)(2), 300.206, and 300.207, 

which contain information collection 

requirements that have not yet been 

approved by the Office of Management 

and Budget (OMB) under the Paperwork 

Reduction Act (PRA). A document will 

be published in the Federal Register 

announcing the effective dates of these 

provisions after OMB provides its 

approval. 

FOR FURTHER INFORMATION CONTACT: 

Laura Cimo, Trade and Marine 

Stewardship Division, Office of 

International Affairs, NMFS, at (301) 

713–9090. 

SUPPLEMENTARY INFORMATION: 

Background 

The Magnuson-Stevens Fishery 

Conservation and Management 

Reauthorization Act of 2006 (MSRA), 

which was signed into law in January 

2007, amends the Moratorium 

Protection Act to require that actions be 

taken by the United States to strengthen 

international fishery management 

organizations and address IUU fishing 

and bycatch of PLMRs. IUU fishing has 

been defined in the Moratorium 

Protection Act and implemented 

through regulation at 50 CFR 300.201 as 

follows: 

1. Fishing activities that violate 

conservation and management measures 

required under an international fishery 

management agreement to which the 

United States is a party, including catch 

limits or quotas, capacity restrictions, 

and bycatch reduction requirements; 

2. Overfishing of fish stocks shared by 

the United States, for which there are no 

applicable international conservation or 

management measures or in areas with 

no applicable international fishery 

management organization or agreement, 

that has adverse impacts on such stocks; 

and 

3. Fishing activity that has an adverse 

impact on seamounts, hydrothermal 

vents, and cold water corals located 

beyond national jurisdiction, for which 

there are no applicable conservation or 

management measures or in areas with 

no applicable international fishery 

management organization or agreement. 

This final action amends the regulatory 

definition at § 300.201 to make the 

definition more consistent with the 

United Nations General Assembly 

Resolution 65–105. 

The Moratorium Protection Act 

requires the Secretary of Commerce to 

identify in a biennial report to Congress 

those foreign nations whose fishing 

vessels are engaged in IUU fishing or 

fishing activities or practices that result 

in bycatch of PLMRs. The Moratorium 

Protection Act also requires the 

establishment of procedures to certify 

whether appropriate corrective actions 

have been taken to address IUU fishing 

or bycatch of PLMRs by fishing vessels 

of those nations. Identified nations that 

are not positively certified by the 

Secretary of Commerce could be subject 

to prohibitions on the importation of 

certain fisheries products into the 

United States and other measures, 

including limitations on port access, 

under the High Seas Driftnet Fisheries 

Enforcement Act (Enforcement Act) (16 

U.S.C. 1826a). This final rule sets forth 

procedures to implement the 

identification and certification 

requirements of the Moratorium 

Protection Act. 

NMFS published an Advance Notice 

of Proposed Rulemaking (ANPR) on 

June 11, 2007 (72 FR 32052), to 

announce that it was developing 

certification procedures to address IUU 

fishing and bycatch of PLMRs pursuant 

to the Moratorium Protection Act and, 

based upon comments received, a 

proposed rule was published on January 

14, 2009 (74 FR 2019). Public comments 

were solicited on the proposed rule for 

a period of 120 days. In conjunction 

with publication of the proposed rule, 

NMFS held public hearings in 2009 in 

locations where it expected substantial 

public interest in the proposed 

procedures. These sessions were held in 

Boston, MA (March 16, 2009); Silver 

Spring, MD (April 6, 2009); San Diego, 

CA (April 13, 2009); Seattle, WA (April 

14, 2009); Honolulu, HI (April 27, 2009); 

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