[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 842]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 45_GOVERNMENT PROPERTY--Table of Contents

 

      Subpart 45.4_Contractor Use and Rental of Government Property

 

45.404  Rent-free use.



    (a) The rental required by 45.403 above does not apply to the 

following Government production and research property:

    (1) That which is located in Government-owned, contractor-operated 

plants operated on a cost-plus-fee basis (but see 45.405).

    (2) That which is left in place or installed on contractor-owned 

property for mobilization or future Government production purposes. 

However, rent computed in accordance with 45.403(a) shall apply to that 

portion of property or its capacity used or authorized for use.

    (3) Items of equipment that are part of a general program approved 

by the Federal Emergency Management Agency (FEMA) and present unusual 

problems in relation to the time required for their preparation for 

shipment, installation, and operation because of size, complexity, or 

performance characteristics.

    (4) Any other Government production and research property that may 

be excepted by FEMA.

    (b) The contracting officer cognizant of the Government production 

and research property may grant written authorization for rent-free use 

of production and research property in the possession of nonprofit 

organizations when used for research, development, or educational work 

and--

    (1) The use of the property is directly or indirectly in the 

national interest;

    (2) The property will not be used for the direct benefit of a 

profitmaking organization; and

    (3) The Government receives some direct benefit (such as rights to 

use the results of the work without charge) from its use. As a minimum, 

the contractor shall furnish a report on the work for which the property 

was provided.

    (c) If the contracting officer has obtained adequate price or other 

consideration, Government production and research property may also be 

used rent-free under--

    (1) Prime contracts that specifically authorize such use without 

charge; and

    (2) Subcontracts of any tier, if the contracting officer awarding 

the prime contract has specifically authorized rent-free use by the 

subcontractor.

    (d) After award, a contract may be modified to eliminate rent for 

using Government production and research property. In this case, the 

contract shall be equitably adjusted to reflect the elimination of rent 

and any other amount attributable thereto.