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DSCR I217: USE AND CHARGES, at FARSmarterBids.com

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DSCR I217: USE AND CHARGES


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Section: I
DPACS Code: I217
BSM Code: I45A09
Clause Number: DEV:52.245-9
Type: LOCAL
Clause last updated: 1984-04

Date of text: 1984-04 (current version)
I217   52.245-9       USE AND CHARGES (DEV)       (APR 1984)
AND
I45A09
                      

    (a)  Definitions.
         As used in this clause--

         Acquisition cost means the acquisition cost recorded in the 
Contractor's property control system or, in the absence of such 
record, the value attributed by the Government to a government 
property item for purposes of determining a reasonable rental charge.

         Government property means property owned or leased by the 
Government.

         Real property means land and rights in land, ground 
improvements, utility distribution systems, and buildings and other 
structures.  It does not include foundations and other work necessary
for installing special tooling, special test equipment, or equipment.

         Rental period means the calendar period during which 
government property is made available for commercial purposes.  Rental
time means the number of hours, to the nearest whole hour, rented 
property is actually used for commercial 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)  General.

         (1)  Rental requests must be submitted to the administrative 
Contracting Officer, identify the property for which rental is 
requested, propose a rental period, and calculate an estimated rental 
charge by using the Contractor's best estimate of rental time in the 
formula described in paragraph (c) of this clause.

         (2)  The Contractor shall not use government property for 
commercial 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 noninterference basis.

    (c)  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 1 year 
following the date the appraisal was performed.  The Contractor shall 
submit the appraisal to the administrative Contracting Officer at 
least 30 days prior to the date the property is needed for commercial 
use.  Except as provided in paragraph (c) (1) (iii) of this clause, 
the administrative Contracting Officer 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 administrative Contracting Officer has 
reason to believe the appraisal rental rate is not reasonable, he or 
she shall promptly notify the Contractor and provide his or her 
rationale.  The parties may agree on an alternate means for computing 
a reasonable rental charge.

         (2)  Other government property.  The Contractor may elect to 
calculate the final rental charge using the appraisal method described
in paragraph (c)(l) 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 1 hour with portions of hours rounded to 
the next higher hour--

Rental charge = (Rental Time in hours)(.02 per month)(Acquisition Cost)
                                  120 hours per month

         (3)  Alternate methodology.  The Contractor may request 
consideration of an alternate basis for computing the rental charge if 
it considers the monthly rental rate or a time-based rental unreasonable 
or impractical.

    (d)  Rental payments.

         (1)  Rent is due at the time and place specified by the 
Contracting Officer.  If a time is not specified, the rental is due 60 
days following completion of the rental period.  The Contractor shall 
calculate the rental due, and furnish records or other supporting data 
in sufficient detail to permit the administrative Contracting Officer 
to verify the rental time and computation.  Unless otherwise permitted 
by law, 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 or by electronic funds transfer to that office.

         (2)  Interest will be charged if payment is not made by the 
specified payment date or, in the absence of a specified date, the 
61st day following completion of the rental period.  Interest will 
accrue at the "Renegotiation Board Interest Rate" (published in the 
Federal Register semiannually on or about January 1st and July 1st) 
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.

    (e)  Use revocation.  At any time during the rental period, the 
Government may revoke commercial use authorization and require the 
Contractor, at the Contractor's expense, to return the property to the 
Government, restore the property to its pre-rental condition (less 
normal wear and tear), or both.

    (f)  Unauthorized use.  The unauthorized use of government 
property can subject a person to fines, imprisonment, or both, under 
18 U.S.C. 641.


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