[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR45]



[Page 833-834]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 45_GOVERNMENT PROPERTY--Table of Contents

 

                   Subpart 45.2_Competitive Advantage

 

45.204  Residual value of special tooling and special test equipment.



    (a) In awarding competitively negotiated contracts that permit the 

acquisition of special tooling or special test equipment, an evaluation 

may be made of the residual value of the property to the Government. 

This evaluation is appropriate when the contracting officer



[[Page 834]]



(1) determines that the property will have a reasonably foreseeable 

usefulness and related residual value beyond the period of use on the 

proposed contract and (2) anticipates that the cost of the property (as 

proposed by the several offerors) may be a factor in making the award. 

This evaluation is not appropriate if the contract will include the 

special tooling or special test equipment as a contract line item.

    (b) The purpose of evaluating the residual value of special tooling 

or special test equipment is to apportion to each proposal only that 

part of the total cost of the property that represents the amount of 

useful life to be consumed during contract performance. Accordingly, the 

proposed price or cost may be reduced for evaluation purposes by an 

amount representing the residual value of such property to the 

Government. In estimating residual value, the contracting officer shall 

consider--

    (1) The useful life of the special tooling and special test 

equipment to be acquired;

    (2) Adaptability of the property for use by other contractors or by 

the Government;

    (3) Reasonably foreseeable requirements for future use of the 

property; and

    (4) The scrap or salvage value of the property.

    (c) If the contacting officer decides to consider the residual value 

of special tooling or special test equipment, the solicitation shall so 

notify offerors and state the Government's reasonably foreseeable future 

requirements for the property.