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  • Question

    What do we have to do, as the Government in regards for a disposition of this trailer being a total loose with no value. Additionally, the contractors facility is geographically separated from the program office by 200 miles. Can we dispose of the trailer as a total loss, and if so what does that process consist of. Forms, inspection etc. Thank you for your expertise on this matter. Very Respectfully Patrick.


    Answer

    See the DCMA GUIDEBOOK FOR GOVERNMENT CONTRACT PROPERTY ADMINISTRATION.

     

    FAR 52.245-1 imposes the requirements for a contractor property management system that provides for effective and efficient control of Government property. Contracting Officers (CO) determine whether the contractor’s property management system is acceptable based on the results of a standard or limited PMSA conducted by the PA. FAR 52.245-1(g)(1) “Systems analysis,”

     

    The cognizant Property Administrator (PA) or Industrial Property Management Specialist (IPMS) may not excuse contractors from reporting property loss regardless of the property value.

     

    Contractor reporting is required for all incidents of property loss, to include those that may be considered workmanship issues (i.e., damage to aircraft that is the result of a task, operation, or action performed by the contractor which was originally planned or intended, but the end result is not within allowable limits).

     

    Within 90 calendar days of receipt of an acceptable property loss report from the contractor, the PA must: Review the contract terms and conditions to determine whether the contract specifies that the risk of loss is assumed by the Government or the contractor.

     

    If the PA concludes, after application of the contract terms and conditions to the facts, that the risk of loss is assumed by the Government, the PA must relieve the contractor of responsibility and liability in writing, consistent with Certificate of Appointment authority, and provide the ACO with a copy of that determination.

     

    If the PA determines, based upon the criteria identified in FAR 52.245-1(h), that the potential property loss was a risk imposed upon the contractor, the PA must recommend one of the following alternatives to the ACO:

     

    • Hold the contractor fully or partially responsible and liable for the property’s unit acquisition cost. If replacement is required, and the cost to replace the property exceeds the unit acquisition cost, the PA will recommend the contractor be held responsible for the higher liability amount;

     

    • Authorize the contractor to repair or replace the property;

     

    • Determine a form of consideration appropriate for the circumstances.

     

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